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2025-01-23
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skygaming DETROIT (AP) — If Donald Trump makes good on his threat to slap 25% tariffs on everything imported from Mexico and Canada, the price increases that could follow will collide with his campaign promise to give American families a break from inflation. Economists say companies would have little choice but to pass along the added costs, dramatically raising prices for food, clothing, automobiles, booze and other goods. The president-elect floated the tariff idea, including additional 10% taxes on goods from China, as a way to force the countries to halt the flow of illegal immigrants and drugs into the U.S. But his posts Monday on Truth Social threatening the tariffs on his first day in office could just be a negotiating ploy to get the countries to change behavior. High food prices were a major issue in voters picking Trump over Vice President Kamala Harris, but tariffs almost certainly would push those costs up even further. For instance, the Produce Distributors Association, a Washington trade group, said Tuesday that tariffs will raise prices for fresh fruit and vegetables and hurt U.S. farmers when other countries retaliate. “Tariffs distort the marketplace and will raise prices along the supply chain, resulting in the consumer paying more at the checkout line,” said Alan Siger, association president. Mexico and Canada are two of the biggest exporters of fresh fruit and vegetables to the U.S. In 2022, Mexico supplied 51% of fresh fruit and 69% of fresh vegetables imported by value into the U.S., while Canada supplied 2% of fresh fruit and 20% of fresh vegetables. Before the election, about 7 in 10 voters said they were very concerned about the cost of food, according to AP VoteCast, a survey of more than 120,000 voters. “We’ll get them down,” Trump told shoppers during a September visit to a Pennsylvania grocery store. The U.S. is the largest importer of goods in the world, with Mexico, China and Canada its top three suppliers, according to the most recent U.S. Census data. People looking to buy a new vehicle likely would see big price increases as well, at a time when costs have gone up so much that they are out of reach for many. The average price of a new vehicle now runs around $48,000. About 15% of the 15.6 million new vehicles sold in the U.S. last year came from Mexico, while 8% crossed the border from Canada, according to Global Data. Much of the tariffs would get passed along to consumers, unless automakers can somehow quickly find productivity improvements to offset them, said C.J. Finn, U.S. automotive sector leader for PwC, a consulting firm. That means even more consumers “would potentially get priced out of the activity” of buying a new vehicle, Finn said. Hardest hit would be Volkswagen, Stellantis, General Motors and Ford, Bernstein analyst Daniel Roeska wrote Tuesday in a note to investors. Stellantis and VW import about 40% of the vehicles they sell from Canada and Mexico, while it's 30% for GM and 25% for Ford. GM and Stellantis import more than half of their high-profit pickup trucks from the two countries, according to Bernstein. If Trump does impose the tariffs in January, the auto industry would have little time to adjust, putting operating profits at risk for the automakers, Roeska said in an email. “A 25% tariff on Mexico and Canada would severely cripple the U.S. auto industry,” he said. The tariffs would hurt U.S. industrial production so much that “we expect this is unlikely to happen in practice,” Roeska said. The tariff threat hit the stocks of some companies that could be particularly hurt, such as auto manufacturers and Constellation Brands, which sells Modelo and other Mexican beer brands in the United States. But the overall market held relatively steady near records as investors saw Trump’s proposal as more of an opening position for negotiations rather than as a definitive policy. It's not clear how long the tariffs would last if they are implemented, but they could force auto executives to move production to the U.S., which could create more jobs in the long run. But Morningstar analyst David Whiston said in the short term automakers probably won't make any moves because they can't quickly change where they build vehicles. To move to the U.S., they would have to buy equipment and revamp their parts supply chain, which can take years. “I think everyone is going to be in a wait-and-see mode,” Whiston said. Millions of dollars worth of auto parts flow across the borders with Mexico and Canada, and that could raise prices for already costly automobile repairs, Finn said. The Distilled Spirits Council of the U.S. said tariffs on tequila or Canadian whisky won’t boost American jobs because they are distinctive products that can only be made in their country of origin. In 2023, the U.S. imported $4.6 billion worth of tequila and $108 million worth of mezcal from Mexico and $537 million worth of spirits from Canada, the council said. “At the end of the day, tariffs on spirits products from our neighbors to the north and south are going to hurt U.S. consumers and lead to job losses across the U.S. hospitality industry just as these businesses continue their long recovery from the pandemic,” the council said in a statement. Electronics retailer Best Buy said on its third-quarter earnings conference call that it runs on thin profit margins, so while vendors and the company will shoulder some increases, Best Buy will have to pass tariffs on to customers. “These are goods that people need, and higher prices are not helpful,” CEO Corie Barry said. Walmart also warned this week that tariffs could force it to raise prices, as did Footwear Distributors and Retailers of America. Canadian Prime Minister Justin Trudeau, who talked with Trump after his call for tariffs, said they had a good conversation about how the countries can work together on the challenges they face. "This is something that we can do, laying out the facts and moving forward in constructive ways. This is a relationship that we know takes a certain amount of working on and that’s what we’ll do,” Trudeau said. Trump's transition team wouldn't comment on the call. Also Monday, Trump turned his ire to China, saying he has “had many talks with China about the massive amounts of drugs, in particular Fentanyl, being sent into the United States – But to no avail.” The Chinese Embassy in Washington cautioned on Monday that there will be losers on all sides if there is a trade war. Trump's threats come as arrests for illegally crossing the border from Mexico have been falling . The most recent U.S. numbers for October show arrests remain near four-year lows. But arrests for illegally crossing the border from Canada have been rising over the past two years. Much of America’s fentanyl is smuggled from Mexico. Border seizures of the drug rose sharply under President Joe Biden. The tariffs would also throw into doubt the reliability of the 2020 trade deal brokered in large part by Trump with Canada and Mexico, the USMCA, which replaced NAFTA and is up for review in 2026. Trump transition team officials did not immediately respond to questions about what authority he would use, what he would need to see to prevent the tariffs from being implemented and how they would impact prices in the U.S. Mexico’s Foreign Relations Department and Economy Department also had no immediate reaction to Trump’s statements. ___ Rugaber reported from Washington. AP reporters Dee-Ann Durbin in Detroit, Stan Choe and Anne D'Innocenzio in New York, and Rob Gillies in Toronto contributed to this report.

MarsBars Cellectar Biosciences ( NASDAQ: CLRB ) stock plunged 50% post-market after the company announced it plans to lay off around 60% of its workforce as it seeks a partner or buyer for its iopofosine |131 clinical program. The biotech company said it expects the

A new year on the London Underground is around the corner. This brings with it developments on the network, and maybe progress towards some long-term goals. Sadiq Khan and Transport for London (TfL) say they need more cash from the Government for some of the capital's largest projects. But some things are already underway. Changes coming in 2025 include new trains and the roll out of new technology at stations and on lines. In addition, discussions will definitely be happening behind the scenes regarding proposals that need developing further. READ MORE: Plans for new London Overground station next to HS2 'under consideration' New Piccadilly line trains A change that is definitely coming is new trains on the Piccadilly line. The stock is part of a £2.9 billion upgrade. Next year, this will begin in earnest as customers will be able to ride the state-of-the-art carriages for the first time. They will be introduced over two years, with the final train rolled out in 2027. Passengers will be able to enjoy walk-through carriages, air con, USB charging ports and better travel information. As well as the new stock, the power system on the Piccadilly line will be upgraded. TfL says this will ensure that the new trains run as reliably and efficiently as possible when it starts running more at the busiest times. The new trains will be also be 'rigorously tested' before they carry our customers. Officials say TfL is also improving its train maintenance depots to ensure that the stock 'works reliably, efficiently and provide the maximum comfort'. At Cockfosters and Northfields depots, staff are building new facilities to maintain the trains with extra stabling track and cleaning facilities. At South Harrow , TfL has installed extra stabling track so that trains can be quickly brought into use when services start to run more frequently. In addition, bosses say the following will be delivered: Four lines modernisation A new signalling system is being installed on the Circle, Hammersmith and City, District and Metropolitan lines. In September 2022, TfL introduced a new timetable. Officials say this has improved journey times by around five per cent on average on the Circle and District lines between Monument, Fulham Broadway, Barons Court and Paddington. Since September 2021, bosses add that journey times between Hammersmith and Aldgate have improved by approximately 10 per cent. Operators have also increased the number of trains between Baker Street and Aldgate from 27 trains an hour to 28 trains an hour during the busiest times. TfL says that areas still to go live include the Metropolitan Line north of Finchley Road and sections of the District line from Barons Court to Stamford Brook and Fulham Broadway to East Putney. The next section to come into service will be on the Metropolitan line between Finchley Road and Preston Road in 2025, officials add. Bakerloo line extension and new stock Something that is less certain, however, is what is happening with the proposed Bakerloo line extension to Lewisham. TfL says more cash from the Government is needed, and a new fleet of trains for the Tube's brown line will need to be built first. This will also require money. But this is included as an option in an already existing contract with Siemens , the same firm that is producing the new Piccadilly line trains. So it's down in black and white in some form. In addition, TfL has asked Aecom and architects WW+P to examine the feasibility of constructing four new stations. These are Burgess Park, Old Kent Road, New Cross Gate and Lewisham. The New Civil Engineer reports that this is expected to take four months. It seems that the extension will be dependent on how well the UK's economy performs in 2025. The Chancellor of the Exchequer, Rachel Reeves, told MyLondon in April : "Of course I want to see the investment in infrastructure our country needs to grow after 14 years of mismanagement. But we have to always show where the money is going to come from, and we need to grow the economy to be able to release funds for crucial infrastructure investment." However, Ms Reeves has said that she will change the Government's self-imposed debt rules in order to free up billions of pounds for infrastructure spending. This is to 'grow the economy', she said. The DfT says that it is working with the Mayor on funding for TfL. Air filters, noise measures and cooling the Tube down The trial of an air filtration system at Baker Street started in May 2024. The technology will be assessed over the coming months to understand its ability to handle large volumes of air, the rate at which dust is captured, ease of maintenance, and any other possible issues, Sadiq Khan has said. The mayor's TfL budget for this year also said that Green Park was also going to get a new filter system as part of the trial. If these prove successful, we could see these rolled out more widely. In addition, testing a brand new Underground train could be deployed as part of officials' efforts to improve the air quality on platforms and in tunnels. The mayor told the London Assembly on July 5 : "As part of its continuing work to improve air quality on the Tube network, Transport for London (TfL) is exploring the latest advances in innovation. This includes trialing a bespoke track cleaning train, which is currently going through TfL’s approval process, to ensure it is safe to operate on the Tube network. "The trial is expected to take place later this year." Who knows, this could start to operate in 2025. In an effort to curb Tube noise, new technology, Delkor fastenings, are now fitted as standard as part of TfL's ongoing Deep Tube track renewal programme. TfL has carried out renewal works – which include the installation of Delkor fastenings – at a number of sites. Further renewal works – including the installation of Delkor fastenings – will continue as part of TfL’s ongoing programme, Mr Khan has said . Further, TfL has successfully trialled new technology that cools down Underground station platforms. The Mayor of London says that they could be rolled out to deep Tube lines in future, but installing them across the city would require more funding. After they were tried out at Holborn Station, testing would need to take place in a station open to customers (Knightsbridge) before TfL could look to potentially introduce them at four additional stations on the Piccadilly line (Green Park, Holborn, Leicester Square and Piccadilly Circus). Sign up for our London Underground newsletter for the latest travel updates to make your commute easier, plus a weekly fix of Tube trivia! Sign up HERE.

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