Welcome to the Daily 5 report for Thursday, July 17.
The auto industry survived better than expected from the initial shocks of President Donald Trump's tariffs and global trade fights.
But the impacts of U.S. tariffs will become more acute in the second half of the year as automakers process new-vehicle inventory and work with suppliers to mitigate billions of dollars in new costs, experts say.
Automakers and suppliers attribute the relative stability to tariff exemptions for many North American vehicles and parts and proactive measures they took to import products ahead of the higher levies, John Irwin wrote today in this story.
It'll be difficult to pinpoint when more significant price increases or supply chain issues emerge, Jennifer Safavian, CEO of Autos Drive America, which represents international automakers' U.S. operations, told Irwin.
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"What suppliers and automakers are dealing with right now in trying to absorb these increased costs is not sustainable, but it's not clear what the breaking point is," she said.
Automakers expect the 25 percent tariffs on vehicles and parts to cost billions of dollars this year, Irwin wrote. And there will be more uncertainty. Trump has floated the idea of raising tariffs even higher to stimulate more U.S. auto production. Potential tariffs on copper and semiconductors could bring additional costs.
Meanwhile, the Trump administration is working out the details for how auto interest tax deductions will work. For the 2025-28 tax years, auto loan borrowers can deduct up to $10,000 annually in interest on new vehicles assembled in the U.S., Paige Hodder wrote in this story. But the potential savings are income-dependent and could vary significantly depending on how much a car buyer borrows, said consulting firm Anderson Economic Group.
"The No. 1 thing for dealers to understand is this changes the game for financing for a lot of buyers," said Patrick Anderson, CEO of Anderson Economic Group.
There was major news in the mobility world announced by Uber, Lucid Motors and Nuro. Uber said it plans to invest $300 million in electric vehicle maker Lucid in a robotaxi deal that aims to start with one major U.S. city late next year. Uber said it plans to deploy 20,000 Lucid Gravity crossovers equipped with autonomous vehicle technology from startup Nuro.
That's it for now. Have a great rest of your day. If you want to read this story in your browser, click here.
— Philip Nussel, online editor
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