Trump Taps the Brakes on Auto Tariffs

Good morning, As the gears of global trade shift and industries catch their breath, remember—every new day brings a chance to fine-tune your own engine.

^{—Capitalism's working hard. Hope you are too!}

TARIFF
Trump eases auto tariffs

President Trump, aboard Air Force One, signed executive orders softening his tariff hammer on carmakers, granting relief to Ford, GM, and others. The tweaks exempt automakers paying a 25% auto import tariff from additional steel, aluminum, or Canada-Mexico levies, and offer a temporary break on 15% of imported parts’ costs, phasing out over two years. “A little flexibility,” Trump quipped at a Michigan rally, urging U.S. production.

The move, spurred by talks with auto execs and Commerce Secretary Howard Lutnick, acknowledges tariffs’ sting—GM scrapped profit forecasts amid uncertainty. Yet, the 25% vehicle tariff and parts duties remain, set to hike car prices by thousands, per analysts. “Relief today doesn’t fix the long-term challenge,” Bernstein notes, as imported components from China and beyond face levies. Auto leaders like GM’s Mary Barra welcome the pause but eye further talks, while the industry braces for higher costs and fading economic momentum.

ECONOMY
Pre-tariff jobs data

A labor market humming along in March, steady but slowing, like a car coasting downhill. According to the Bureau of Labour Statistics, job openings dropped 288,000, layoffs clung to historic lows, and hiring chugged on. Then came Trump’s tariffs 10% to over 120% on Chinese goods crashing the party. Consumer sentiment tanked, businesses jittered, and economists like Guy Berger of Burning Glass Institute warned, “We had stability, but trade policy’s rewriting the script.” Pre-tariff, tech and manufacturing lagged; shipping guru Craig Fuller predicts a tariff-fueled crunch in weeks. April’s jobs report expected to show 130,000 new jobs and 4.2% unemployment looms large. Treasury’s Scott Bessent touts consumer strength, but Instawork’s Daniel Altman says, “Wait for the data.” A stable past meets an uncertain future.

ENERGY
New rules for climate action

The Voluntary Carbon Markets Integrity Initiative (VCMI) just dropped new guidance, letting companies use carbon credits through 2040 to tackle tricky Scope 3 emissions—those pesky greenhouse gases from supply chains. Backed by Google and Bezos Earth Fund, VCMI’s rules require firms to map their emissions gap, disclose barriers, and list fixes before buying credits to bridge the shortfall. It’s a lifeline for companies struggling to meet net-zero goals, with a 1.4-gigaton emissions gap looming, per VCMI estimates.

UK Climate Minister Kerry McCarthy cheered the move, urging firms to act fast. But not everyone’s on board—analyst Thomas Day warns it might let companies slack on real cuts, risking greenwashing. The debate’s heated: VCMI says credits fund developing nations’ projects, while skeptics, like the Science Based Targets initiative, argue they’re a shaky shortcut. With the carbon credit market eyeing $50 billion by 2030, the stakes for corporate climate action are sky-high.

AI & TECHNOLOGY
Meta released a standalone AI app

Meta has officially launched its own standalone AI assistant app, stepping directly into the ring with ChatGPT and other conversational AI platforms. Revealed at its LlamaCon event, the app expands on Meta AI already embedded in WhatsApp, Instagram, Facebook, and Messenger. What sets Meta’s chatbot apart? Years of social data. The AI taps into what users have already shared across Meta’s platforms, like your interests, friends, and behaviors, to deliver more personalized answers. Users in the U.S. and Canada will be the first to get access to this tailored interaction.

You can even ask the bot to remember things like dietary preferences for future chats. But this level of personalization raises familiar concerns around data use, especially since Meta’s core revenue still hinges on targeted ads. A new "Discover" feed also lets users share quirky AI outputs with friends — think emoji-based self-portraits — though only if they opt in. Whether this adds to the app’s appeal or becomes another over-socialized feature remains to be seen.