Daily Update — April 17, 2025
Tariffs Hit Auto Sector; Utilities Build Climate Resistance; and Reciprocal Duties on Tech
Today is Thursday, April 17, 2025, and here’s your curated selection of Essential Intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.
Global Trade
Tariffs Take The Wheel: Higher Prices, Lower Sales, Greater Risks For The North American Auto Sector
The macroeconomic landscape is affecting growth projections, due in part to the Trump administration’s shifting policies. Recent tariff announcements by the US and retaliatory measures from China have introduced significant uncertainty, surpassing market expectations. Despite President Trump's temporary pause on most tariffs, unresolved trade tensions pose risks that could adversely affect credit quality if tariffs are fully reinstated.
In light of these developments, forecasts for the North American auto industry were adjusted to reflect the compounded effects of high vehicle prices, persistent inflation, rising unemployment and elevated auto loan payments. China's export restrictions on rare earth elements are also expected to disrupt automotive supply chains, further constraining growth in the sector, particularly for battery-electric vehicles and plug-in hybrids.
Stay up to date with our latest automotive industry forecast and performance data.
Energy Transition & Sustainability
Listen: How one of the largest US utilities is building climate resilience
In this episode of the “All Things Sustainable” podcast, S&P Global Sustainable1 sits down with Shinjini Menon, senior vice president of system planning and engineering at Southern California Edison, to discuss how the electric utility is prioritizing energy reliability and affordability while building climate resilience in a region that is particularly vulnerable to wildfires.
Technology & Innovation
Dialing down reciprocal duties on phones, computers, later increases a risk
US customs authorities have clarified the Trump administration's tariff reductions concerning the electronics sector, specifically including smartphones, network-connected devices and various computer components that were subject to high tariffs. The inclusion of these products in the exemption list came as electronic manufacturers faced significant share price declines due to a steep 145% tariff on imports from China, which accounted for a large portion of US electronics imports in 2024.
Despite the exemptions, manufacturers still face challenges as shifting supply chains entirely to the US for complex electronic devices is impractical in a short time frame. The changes also mean that these devices will be part of an upcoming review of the semiconductor and electronics components sector, which could lead to higher tariffs. Companies may need to raise prices during the peak new product launch season in late 2025, and while they might expedite imports of established products to avoid further tariff increases, introducing new products will be complicated due to development and marketing timelines.
In case you missed it
- Iran's grain farmers are turning to solar energy for the first time, following government orders to ensure a steady supply of electricity during power shortages.
- Fiber-to-the-premises became the leading broadband technology in Central and Eastern Europe, replacing older platforms such as DSL and cable.
- US equity real estate investment stocks underperformed the broader market in the week ended April 11.
Upcoming events
- Global Airlines Industry: Navigating Diverging Trends | April 22 (Webinar)
- AI Has Swallowed the Tech Industry: Indigestion to Follow? | April 24 (Webinar)
- Sustainable1 Summit 2025 | April 30 (In-person: London) and June 26 (In-person: Singapore)
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