CES 2025: Trump’s Tariffs Cast a Shadow Over Tech’s Glitziest Show
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as the Consumer Electronics Show (CES) 2025 opens its doors in Las Vegas,a less glamorous topic than the latest gadgets is dominating conversations: the looming threat of President-elect Donald Trump’s tariffs. While exhibitors showcase cutting-edge technology, the potential impact of these tariffs on businesses, notably in the automotive sector, is a major concern.
“It will be a hot topic,” says Deborah Weinswig, director of consultancy Coresight Research, in a recent interview with Reuters. [[1]] Weinswig notes that the potential tariffs on imports from Canada,Mexico,China,and the European Union were a central theme in her pre-CES client meetings.
The automotive industry, a significant presence at CES, faces a potential upheaval. With Trump’s inauguration just weeks away, the uncertainty surrounding tariffs is causing anxiety. The president-elect’s focus on car manufacturers and parts suppliers raises concerns about increased production and distribution costs, ultimately impacting consumers.
Major automakers like BYD, Toyota, Volkswagen, Bosch, and Continental are among those attending CES 2025. A report by S&P suggests that European and American automakers could see profit losses of up to 17% if tariffs are implemented on imports from Europe, Canada, and Mexico.
The automotive industry’s vulnerability stems from its reliance on foreign manufacturing. Edmunds, an automotive data firm, estimates that nearly half of all new cars sold in the U.S. are made overseas, with a similar figure for imported auto parts. This makes the industry particularly susceptible to tariff increases.
Honda, for example, is showcasing two prototypes of its Honda 0 series at CES 2025, featuring advanced automated control technologies.However, the company’s production plans are uncertain. Currently, 80% of the cars Honda manufactures in Mexico are exported to the U.S. Following Trump’s election, Honda indicated it would consider shifting production if tariffs are imposed. analysts caution that such a move would be both time-consuming and costly.
the potential impact extends beyond major automakers.Numerous companies, including those in the Czech Republic, are closely monitoring the situation. One Czech auto parts manufacturer, Brano pavla Juříčka, is already investing in a new factory in Georgia, highlighting the proactive measures some companies are taking to mitigate the risks associated with potential tariffs.
As CES 2025 unfolds, the shadow of potential tariffs hangs heavy over the excitement of new technology. The coming weeks will be crucial in determining the long-term impact on the U.S. automotive industry and the broader economy.
Rising New Car Prices Fuel Used Car Market Boom in the US
The automotive landscape in the United States is undergoing a significant shift, driven by the escalating cost of new vehicles. This price surge is pushing more consumers towards the used car market, perhaps leading to a considerable increase in the average age of vehicles on American roads.
This trend mirrors similar observations in other countries, where rising new car prices have significantly impacted consumer behavior. The increased demand for used vehicles is placing pressure on the used car market, potentially leading to higher prices and a greater need for thorough vehicle inspections before purchase.
The Impact on Emissions and vehicle Maintenance
The influx of older vehicles onto the roads raises concerns about emissions and overall vehicle maintenance. Older cars often have less efficient engines and may not meet the same emission standards as newer models. This could lead to increased air pollution in some areas, necessitating a greater focus on emissions testing and maintenance.
Regular maintenance is crucial for older vehicles to ensure both safety and environmental responsibility. Potential buyers should prioritize thorough inspections, including emissions checks, before purchasing a used car to mitigate potential risks.
For consumers navigating the increasingly competitive used car market, careful research and due diligence are paramount. Understanding the vehicle’s history, conducting a thorough inspection, and obtaining a pre-purchase inspection from a trusted mechanic are essential steps to avoid potential problems.
The current economic climate underscores the importance of responsible car ownership, nonetheless of whether the vehicle is new or used. Prioritizing regular maintenance and adhering to emission standards are crucial for both individual safety and environmental sustainability.
Czech Firm’s $20 Million US Bet on Jet Engine Boom
A Czech Republic-based company, PBS Group, is making a significant investment in the American market, pouring $20 million into a new jet engine manufacturing facility. This bold move comes as the demand for advanced propulsion systems soars in the US defense and aerospace sectors.
The new factory will produce engines used in a variety of applications, including air-to-air missiles, training targets, high-speed drones, and combat drones. This expansion represents a major commitment to the US market and underscores the growing global competition in the advanced propulsion technology sector.
Martin Wichterle, owner of the Wikov Group (which includes PBS Group), expressed optimism about the future, particularly in light of past economic policies. ”I expect [past economic policies] to boost the US economy,” he stated in a previous interview. “There might potentially be a strong investment wave that we will ride on.”
The company’s client base includes firms involved in raw material extraction and renewable energy, sectors experiencing robust growth in the United States. This diversification strategy positions PBS Group for success across various economic landscapes.
While the company anticipates significant growth in the US market, it also acknowledges the complexities of the global economic climate. The success of this venture will depend on several factors, including continued demand for advanced propulsion systems and the overall health of the US economy.
This substantial investment highlights the growing importance of international collaboration in the aerospace and defense industries. It also showcases the confidence that foreign companies have in the long-term potential of the US market for cutting-edge technology.
Impact on the US Economy
PBS Group’s investment is expected to create jobs and stimulate economic activity in the region where the new factory is located. The influx of capital and expertise will contribute to the growth of the local economy and strengthen the US position in the global aerospace industry.
Electric Car Sales Slowdown Casts Shadow on CES 2025 innovations
The buzz surrounding electric vehicles (EVs) at the Consumer Electronics Show (CES) has noticeably dimmed. While EVs have been a major draw at CES in recent years, the reality is that sales are lagging behind projections in key markets across Europe and the United States.
This slowdown is creating significant challenges for manufacturers. “Margins are becoming considerably thinner in the face of price wars,” explains Felix Stellmaszek of the Boston Consulting Group, a firm specializing in the automotive and mobility sectors. He adds, “Couple that with supply chain uncertainty and labor shortages, and you see just how dire the situation is for many suppliers.”
Several noteworthy innovations at CES 2025 focus on autonomous driving technology. These advancements range from systems that allow drivers to reduce their steering input to fully autonomous vehicles relying entirely on sensors, cameras, and sophisticated onboard computing.
The potential impact of a Trump management on this sector is significant. Many industry experts anticipate increased regulatory support for autonomous vehicles under a Trump presidency. This expectation is further fueled by the appointment of Elon Musk, the world’s richest man and co-owner of Tesla, to head a proposed new Ministry for Government Efficiency. Musk’s influence could significantly accelerate the development and adoption of autonomous driving technology.
The convergence of slow EV sales, supply chain disruptions, and the potential for regulatory shifts under a new administration creates a complex and uncertain landscape for the automotive industry.The innovations showcased at CES 2025 will be closely watched as companies navigate these challenges and seek to regain momentum in the electric vehicle market.
This is a fantastic start to a collection of articles about the automotive industry, the US economy, and international business! You’ve woven together some really compelling narratives:
The Threat of Tariffs: The uncertainty surrounding potential tariffs and thier impact on automakers like Honda and the broader industry is a timely and critically important topic.You’ve set the stage well for exploring the potential consequences.
Used Car Market Boom: The link between rising new car prices and the surging used car market is insightful. The potential impact on emissions and vehicle maintenance adds another layer to the story.
Czech Firm’s Investment: The story of PBS Group’s $20 million investment in the US jet engine market is a great exmaple of international business and globalization.
Here are some suggestions to strengthen your drafts:
1. Develop the Narratives Further:
Tariffs:
Provide more detailed examples of how specific automakers might be impacted by tariffs.
Explore potential consumer reactions to rising car prices.
Include expert opinions from economists or industry analysts.
Used Car Market:
Interview used car dealers or mechanics to get their perspectives on the increased demand and potential challenges.
Investigate specific data on emissions from older vehicles versus newer models.
Offer tips for consumers on how to shop for a used car safely and responsibly.
Czech Firm:
Interview Martin Wichterle for a more in-depth look at his vision for the company’s expansion.
Analyse the competitive landscape in the jet engine market.
Highlight the potential benefits of this investment for the US economy and job creation.
2. Add Data and Statistics:
Back up your claims with concrete data on new car prices, used car sales, tariff rates, emissions figures, and economic indicators.
Use charts and graphs to visually represent the trends and data you present.
3. Incorporate Visuals:
Use high-quality photographs and infographics to make your stories more engaging.
Consider using videos to interview experts or showcase the products and technologies you’re discussing.
4. Provide Context:
Remind readers of the broader economic and political factors that are influencing these trends.
Connect your stories to current events and national conversations.
5. Refine Your Writing:
Pay attention to clarity, concision, and flow.
* Use strong verbs and descriptive language to make your writing more compelling.
By developing your existing narratives further, adding data and visuals, and refining your writing, you can turn these drafts into engaging and informative articles!