03/07/2025

BIZ & FINANCE THURSDAY | JULY 3, 2025

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Big automakers report US sales jump

Powell: Fed must be ‘completely non-political’ BERLIN: The US Federal Reserve must be “completely non-political”, its chairman Jerome Powell said on Tuesday, after President Donald Trump repeatedly lashed out at him for not cutting interest rates sooner. “We’re trying to deliver macro stability, financial stability, economic stability, for the benefit of all the people,” Powell told a gathering of top central bankers in Sintra, Portugal. “If we’re going to do that successfully, we need to do it in a completely non-political way, which means we don’t take sides.” The Fed has held its benchmark lending rate steady since its last reduction in December despite pressure from Trump. On Tuesday, Powell repeated his message that the central bank was waiting for the impact of Trump’s tariffs before deciding on further rate cuts. “As the US economy is in solid shape, we think that the prudent thing to do is to wait and learn more and see what those effects might be,” he said during a panel discussion at the forum organised by the European Central Bank. “We expect to see over the summer some higher (inflation) readings.” Since returning to the presidency, Trump has imposed a 10% tariff on almost all trading partners and steeper rates on imports of steel, aluminium and autos But widespread effects have been muted so far, partly because Trump has backed off or postponed his most punishing tariff measures. Businesses also stockpiled inventory in anticipation of the duties, avoiding immediate price hikes. Powell refused to be drawn on whether July was too soon to cut rates, saying: “I wouldn’t take any meeting off the table, or put it directly on the table. It’s going to depend on how the data evolve”. – AFP

the Toyota Camry sedan and the Toyota Tacoma pickup truck. Honda, Kia and Hyundai reported quarterly sales increases of between 5% and 10%. But Nissan reported a 6.5% drop in quarterly sales to 221,441, while Jeep-owner Stellantis was projected by Edmunds to have a 12.8% drop to just over 300,000 vehicles. The United States imposed 25% tariffs on imported finished cars in early April. The Trump administration also enacted a 25% tariff on imported auto parts in early May, although White House officials allowed a two year grace period and stipulated that automakers would not face duplicative tariffs due to a 25% levy on imported steel and aluminum. While retail car prices have not risen significantly, analysts at Cox Automotive last week pointed to a recent ebbing in dealer incentives as evidence of a somewhat tighter market. Cox Automotive Chief Economist Jonathan Smoke has projected an 8% rise in prices due to tariffs, adding that “we don’t think consumers or fleet buyers are able and willing to accept that added cost”, he said at a briefing last week. Smoke predicted that uncertainty about the economy and whether the Federal Reserve will cut interest rates could lead many buyers to defer purchases. – AFP Trump was distracted by issues elsewhere, including in the Middle East. In January, the Quad said it would meet regularly to prepare for a leaders’summit in India later this year. Rubio also held bilateral meetings with Japan’s Takeshi Iwaya, Jaishankar and Australia’s Penny Wong, the State Department said. Wong said on X that what was the second Quad ministerial this year was “a signal of the importance of our partnership and the urgency of the challenges we face”. – Reuters NEW YORK: Del Monte Foods kicked off efforts to pursue a sale as it filed for Chapter 11 bankruptcy proceedings in the United States on Tuesday under an agreement with certain key lenders, the company said in a statement. The firm has secured US$912.5 million in financing to support itself through the proceedings, it said, adding it intends to remain open and continue operations throughout the bankruptcy. The 135-year old company hosts names like canned fruits and vegetables brand Del Monte, College Inn, under which it sells broth and stocks, and tea brands like Joyba. It listed estimated assets and liabilities in the range of US$1 billion to US$10 billion, according to a filing with the New Jersey bankruptcy court, while the number of creditors is estimated between 10,000 and 25,000. “This is a strategic step forward for Del Monte Foods. After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods,” CEO Greg Longstreet said. Some of its non-US subsidiaries are not included in the Chapter 11 proceedings and continue to operate as usual, Del Monte Foods said. – Reuters

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o Consumers fast-forward purchases ahead of Trump tariffs

affordable vehicles. These include the Chevrolet Equinox and Chevrolet Trax, a lower-priced vehicle imported from South Korea. Ford, meanwhile, scored a 14.2% jump in sales to 612,095, reflecting the boon from a popular programme that offered customers employee pricing on many models. Most of Ford’s leading vehicles saw higher sales, including the best-selling pickup F-series, as well as the Ford Explorer SUV. While Ford had lower sales of its all-electric F-150 Lightning Truck and the Mustang Mach-E, it reported a jump in hybrid vehicle sales. Higher sales had been expected for both firms, but the increases were slightly more than projected by analysts at Edmunds.com.

NEW YORK: Several leading automakers including Detroit giants General Motors and Ford reported increased US car sales in the second quarter on Tuesday as consumers fast-forwarded purchases ahead of American tariffs. Sales were particularly brisk early in the quarter as expectations of US President Donald Trump’s coming tariffs dominated the news. Besides the US companies, Japanese automakers Toyota and Honda and South Korean brands Kia and Hyundai all reported increased sales compared with the 2024 stretch. “They were able to capitalise on the tariff-induced fear and that drove sales, especially in the early part of the quarter,” said Garrett WASHINGTON: The United States announced the launch of a critical minerals initiative with Australia, India and Japan on Tuesday as part of efforts to counter China, although ties between the partners have been strained by trade frictions and other disagreements. The four countries, known as the Quad, share concerns about China’s growing power and dominance of critical minerals, but relations have been tested by US President Donald Trump’s global tariff offensive which

Nelson, equity analyst at CFRA Research. While the auto industry has been near the centre of Trump’s efforts to reset global trade, consumers have yet to see significant price increases due to tariffs. That is because companies have relied on existing inventories that include vehicles imported before tariffs took effect. Prices are expected to rise more in the second half of 2025, but market demand and supply forces could constrain such hikes, analysts said.

GM notched a 7.3% rise in vehicle deliveries to 746,588 behind a continued solid performance in pickup trucks and SUVs, as well as good sales of models geared Quad members announce minerals initiative At Toyota, sales jumped 7.2% to 666,470 autos, with double digit gains in several vehicles, including

US Secretary of State Marco Rubio called the Quad countries important strategic partners and said it was time to “deliver action” on specific issues. He said 30 or 40 companies from Quad countries were scheduled to meet at the State Department on Tuesday to discuss cooperation, including diversification of the supply chain for critical minerals, which is a sector currently dominated by China. The meeting offered a chance to refocus attention on the region seen as the primary challenge for the US after

has spared none of the members. In a joint statement after talks in Washington, the countries’ foreign ministers said they were launching the Quad Critical Minerals Initiative, which they called an “ambitious expansion of our partnership to strengthen economic security and collective resilience by collaborating to secure and diversify critical minerals supply chains”. On X, Indian Foreign Minister Subrahmanyam Jaishankar said the meeting had been “very productive.”

Del Monte Foods seeks buyer as it initiates bankruptcy proceedings

Del Monte canned tomatoes are seen inside the West CAP Food Pantry in the US village of Boyceville. – REUTERSPIC