00:00 Speaker A
On the tariff front auto stocks potentially spared from tariffs by the Trump administration as the president wants to give more time for the companies to adjust to the higher levies. Joining us now with some key takeaways, we’ve got Yahoo Finances’s own Pras Subramanian. Pras, what do we know about this so far?
00:19 Pras Subramanian
Yeah, but maybe some, some relief here for the automakers, uh, you know, we don’t have much clarification. We don’t know when Trump said he wants to help out the automakers, if he’s going to say, hey, we’re going to put a pause potentially on the auto tariffs, the foreign imports of, of 25% or if the car tariffs, the for the car parts tariffs, that thing coming on May 3rd, that’s going to actually have some relief there. I think a lot of analysts talk about how, uh, the car parts, the auto parts is the most important part of the part of the the supply chain here. It’s actually easier to, you know, bring the manufacturing to this to this country as long as you can source the parts from wherever. That’s the big issue. So either way, the industry needs a break, potentially, we might, we might hear more about this from Trump saying that there’s a possible exemption here. Uh, you know, because, because Brad, look at costs if, if these tariffs stay in place for both car parts and the actual foreign imports, could raise prices as much as $3,000 for cheap cars to $12,000 for mid, mid-level cars, even $20,000 for like for a luxury SUV EV deck, that type of vehicle. In terms of lost sales, you could lose about 1.5 to almost two million lost sales per year in the U.S. So it’s, it’s not a, it’s not an insignificant amount and but it’s funny, Brad, I just just hearing anecdotally and seeing on websites different car dealerships, uh, selling, uh, here’s our non-tariff inventory. Come and get it, right? So, how long does that last? It’s funny that see these dealerships sort of using that as a tactic.
02:36 Speaker A
It certainly is interesting to continue to see that kind of on the ground response to these tariffs, Pras, but we’re also getting a global response and I want to talk to you about the retaliation that we saw from China ordering its airlines to stop accepting deliveries of Boeing jets, according to reporting from Bloomberg. Talk to me about what you’re hearing from sources about the impact that could have on Boeing and just more broadly on the airline space, if they’re continued to be a tool in this trade war.
03:08 Pras Subramanian
Yeah, so it’s a Bloomberg report that that, that China has ordered its carriers to halt deliveries of these Boeing jets. Uh, not confirmed as yet, but it seems like that’s what’s happening here, uh, in China. And you know, China’s a big customer, all the various airlines for Boeing parts and not just because not just planes Boeing parts too apparently the parts are actually, uh, the Chinese government saying, don’t order those either. So that could raise price for Chinese consumers and increase costs for maintenance. So, uh, it’s a big deal for Boeing stock is down here, uh, and in the pre-market and and that’s, it’s because a big market is being cut off from them and that’s not surprising. We knew that something like would happen, uh, beyond, uh, you know, auto parts, cars and maybe cell phones, right? This is the next thing is, we’re we’re going to stop deliveries of Boeing jets and that’s a big problem for the for Boeing, who’s trying to ramp up their deliveries here as we get to Q1 earnings coming up in a couple weeks.
04:23 Speaker A
All right, Pras, we got to leave it there. Thank you so much for joining us. Appreciate it.