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		<title>American Airlines makes bag fees even more expensive for basic economy</title>
		<link>https://www.ourstoryinsight.com/american-airlines-makes-bag-fees-even-more-expensive-for-basic-economy/</link>
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		<pubDate>Sun, 12 Apr 2026 10:27:23 +0000</pubDate>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[Airlines]]></category>
		<category><![CDATA[American]]></category>
		<category><![CDATA[bag]]></category>
		<category><![CDATA[basic]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Expensive]]></category>
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		<guid isPermaLink="false">https://www.ourstoryinsight.com/?p=14554</guid>

					<description><![CDATA[<p>Luggage is prepared for an American Airlines flight at O&#8217;Hare International Airport in Chicago, Illinois. Scott Olson &#124; Getty Images News &#124; Getty Images American Airlines joined other airlines in raising its bag fees Thursday, but the luggage will be even more expensive for customers who buy basic economy tickets. United Airlines, JetBlue Airways, Delta [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://www.ourstoryinsight.com/american-airlines-makes-bag-fees-even-more-expensive-for-basic-economy/">American Airlines makes bag fees even more expensive for basic economy</a> appeared first on <a rel="nofollow" href="https://www.ourstoryinsight.com">Our Story Insight</a>.</p>
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										<content:encoded><![CDATA[<p><span class="HighlightShare-hidden" style="top:0;left:0"/></p>
<p>Luggage is prepared for an American Airlines flight at O&#8217;Hare International Airport in Chicago, Illinois. </p>
<p>Scott Olson | Getty Images News | Getty Images</p>
<p><span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-1">American Airlines<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span> joined other airlines in raising its bag fees Thursday, but the luggage will be even more expensive for customers who buy basic economy tickets.</p>
<p><span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-3">United Airlines<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span>, <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-4">JetBlue Airways<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span>, <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-5">Delta Air Lines<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span> and <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-6">Southwest Airlines<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span> have all hiked the fee to check a bag in the past two weeks as the industry grapples with a jump in jet fuel expenses from the war in the Middle East.</p>
<p>American is raising the cost more for its no-frills option, while the other airlines had across-the-board increases.</p>
<p>The airline will hike the fee by $10 to check a first piece of luggage at the airport on domestic or short-haul international flights starting with tickets booked Thursday. That brings the price for one bag to $50, and a second bag will cost $60 for most tickets. There&#8217;s a $5 discount for checking a bag on American&#8217;s website or app, making the prices $45 and $55, respectively.</p>
<p>Customers with a basic economy ticket, meanwhile, will have to pay $55 for their first checked bag and $65 for a second bag starting with tickets purchased on May 18. The $5 online discount also applies to those fees, bringing the prices to $50 and $60, respectively, for those who pay in advance.</p>
<p>All customers in basic economy, even those with status, will also have to pay to pick a seat starting on May 18 and will not be eligible for complimentary and system-wide upgrades.</p>
<p>Airline executives have said travel demand is still high, but it&#8217;s not clear that carriers will be able to cover the entirety of the fuel price run-up. The effective closure of the Strait of Hormuz is choking off supplies of both crude and refined products like jet fuel, further driving up the price.</p>
<p>Jet fuel is airlines&#8217; second-biggest cost, coming after labor.</p>
<p>Meanwhile, airlines have been leaning into premium offerings and making their basic fares more restrictive as the growth from higher-end options outpaces sales from regular economy. American has fallen behind large rivals Delta and United in seeking out luxury customers, profit and more.</p>
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		<title>Most, least expensive grocery stores revealed: new study</title>
		<link>https://www.ourstoryinsight.com/most-least-expensive-grocery-stores-revealed-new-study/</link>
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		<pubDate>Wed, 18 Feb 2026 18:28:58 +0000</pubDate>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[Expensive]]></category>
		<category><![CDATA[grocery]]></category>
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		<guid isPermaLink="false">https://www.ourstoryinsight.com/?p=13315</guid>

					<description><![CDATA[<p>You may need to rethink where you’re grabbing your grub. A new analysis by Consumer Reports has determined the most and least expensive U.S. supermarkets, on average, and upscale behemoth Whole Foods Market topped the list of the priciest — with costs nearly 40% higher than what a consumer would pay at big-box retailer Walmart, [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://www.ourstoryinsight.com/most-least-expensive-grocery-stores-revealed-new-study/">Most, least expensive grocery stores revealed: new study</a> appeared first on <a rel="nofollow" href="https://www.ourstoryinsight.com">Our Story Insight</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>You may need to rethink where you’re grabbing your grub.</p>
<p>A new analysis by Consumer Reports has determined the most and least expensive U.S. supermarkets, on average, and upscale behemoth Whole Foods Market topped the list of the priciest — with costs nearly 40% higher than what a consumer would pay at big-box retailer Walmart, which was used as a baseline for the study.</p>
<p>The regional New England chain Shaw’s followed Whole Foods, with prices about 32% higher than Walmart’s.</p>
<p>Whole Foods was named the most expensive grocer in the Consumer Reports examination. <span class="credit">Christopher Sadowski</span></p>
<p>Trader Joe’s, often thought to be budget-friendly, was also among the most expensive grocery chains in the U.S., rounding out the priciest’s top 10.</p>
<p>TJ’s prices were nearly 25% higher than Walmart’s — and the differences were even greater in some metro areas like Denver (30% higher) and Dallas-Forth Worth (33% higher).</p>
<p>The cheapest chain for groceries was Costco Wholesale, the findings showed, with prices 21.4% lower than Walmart, with BJ’s Wholesale Club following with 21% less.</p>
<p>Overall, the research found that the difference between the highest- and lowest-priced stores was more than 33% — and differences were even more glaring when including warehouses like Costco and specialty grocers like Whole Foods.</p>
<p>The findings emerge as concerned shoppers have found themselves spending increasingly more at grocery stores. An August 2025 poll found that the vast majority of US adults are at least somewhat stressed about the cost of groceries.</p>
<p>Consumers are growing increasingly concerned about rising grocery prices. <span class="credit">stokkete – stock.adobe.com</span></p>
<p>According to an analysis of Bureau of Labor Statistics data by the Federal Reserve Bank of St. Louis, food prices increased 25.5% between December 2020 and December 2024.</p>
<p>Dairy, beef and pork are near or at record-high prices, and coffee alone is up 20% since a year ago.</p>
<p>The price of a carton of eggs hit a record high of $8.15 in March 2025 amid bird flu-induced shortages, with NYC bodegas even selling “loosie”-style eggs as a result.</p>
<p>For its new research, Consumer Reports compared prices on grocery baskets of commonly purchased items — including packaged goods, produce and meat — at mainstream chains from more than two dozen major retailers in six “regionally representative” cities across the country, areas including Boston, Chicago, Dallas-Fort Worth, Denver, Southern California and Virginia Beach. </p>
<p>However, the products differed in size depending on availability by store, meaning comparisons were strongest for the mainstream retailers that carried a wide selection of identical brand items.</p>
<p>Comparison baskets were smaller for stores with private-label brands and specialty goods, as they have fewer items in common with Walmart.</p>
<p>Walmart was used as the baseline for grocery prices. <span class="credit">Christopher Sadowski</span></p>
<p>For example, the Chicago analysis had baskets with 56 items when comparing Food4Less, Jewel-Osco, Marianos, Meijer, Target and Walmart; however, comparing a Chicago Trader Joe’s to Walmart featured a basket containing 23 items.</p>
<p>All prices were collected in person within 48 hours during late summer 2025.</p>
<p>Consumer Reports noted that most Americans buy food from at least two retailers each week, and strategically planning where you shop can ultimately save you a lot of money. The nonprofit buyers’ guide partnered with Strategic Resource Group, a New York-based retail- and grocery-industry market research company, for the new study.</p>
<p>Consumer Reports compared prices from more than two dozen major grocery retailers in six major metro areas. <span class="credit">Prostock-studio – stock.adobe.com</span></p>
<h2 class="wp-block-heading">Top 10 least expensive grocery stores in the U.S., according to Consumer Reports</h2>
<ol>
<li>Costco Wholesale (least expensive)</li>
<li>BJ’s Wholesale Club</li>
<li>Lidl</li>
<li>Aldi</li>
<li>WinCo</li>
<li>H-E-B</li>
<li>Walmart</li>
<li>Market Basket</li>
<li>Target</li>
<li>Wegmans</li>
</ol>
<h2 class="wp-block-heading">Top 10 most expensive grocery stores in the U.S., according to Consumer Reports</h2>
<ol>
<li>Whole Foods (most expensive)</li>
<li>Shaw’s</li>
<li>El Rancho</li>
<li>Jewel-Osco</li>
<li>Mariano’s</li>
<li>Vons</li>
<li>Big Y</li>
<li>Tom Thumb</li>
<li>Albertsons</li>
<li>Trader Joe’s</li>
</ol>
<p>The post <a rel="nofollow" href="https://www.ourstoryinsight.com/most-least-expensive-grocery-stores-revealed-new-study/">Most, least expensive grocery stores revealed: new study</a> appeared first on <a rel="nofollow" href="https://www.ourstoryinsight.com">Our Story Insight</a>.</p>
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		<title>Wall Street wrote off the stock as too expensive. Retail investors can&#8217;t get enough</title>
		<link>https://www.ourstoryinsight.com/wall-street-wrote-off-the-stock-as-too-expensive-retail-investors-cant-get-enough/</link>
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		<pubDate>Thu, 25 Dec 2025 15:53:05 +0000</pubDate>
				<category><![CDATA[Technology]]></category>
		<category><![CDATA[Expensive]]></category>
		<category><![CDATA[investors]]></category>
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		<guid isPermaLink="false">https://www.ourstoryinsight.com/?p=11841</guid>

					<description><![CDATA[<p>Sopa Images &#124; Lightrocket &#124; Getty Images Kyle Dijamco is a proud member of Palantir Technologies&#8216; fast-growing retail investor base. The Los Angeles-based marketer has bet big on the defense tech stock, even increasing his exposure after a drawdown earlier this year. The 31-year-old&#8217;s position now stands at roughly $25,000. &#8220;It&#8217;s an exciting stock to [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://www.ourstoryinsight.com/wall-street-wrote-off-the-stock-as-too-expensive-retail-investors-cant-get-enough/">Wall Street wrote off the stock as too expensive. Retail investors can&#8217;t get enough</a> appeared first on <a rel="nofollow" href="https://www.ourstoryinsight.com">Our Story Insight</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><span class="HighlightShare-hidden" style="top:0;left:0"/></p>
<p>Sopa Images | Lightrocket | Getty Images</p>
<p>Kyle Dijamco is a proud member of <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-1">Palantir Technologies<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span>&#8216; fast-growing retail investor base.</p>
<p>The Los Angeles-based marketer has bet big on the defense tech stock, even increasing his exposure after a drawdown earlier this year. The 31-year-old&#8217;s position now stands at roughly $25,000.</p>
<p>&#8220;It&#8217;s an exciting stock to own,&#8221; Dijamco told CNBC.</p>
<p>Dijamco is part of an army of mom-and-pop traders who have poured billions of dollars into the Denver-based company&#8217;s shares in 2025, according to data from VandaTrack. Its monster gains over recent years amid the artificial intelligence boom has made the stock an indisputable star of the retail investing world, in spite of Wall Street&#8217;s reservations about valuation.</p>
<p>Individual investors were on track to buy nearly $8 billion in Palantir stock on balance in 2025, per Vanda data as of Dec. 8. That is a gain of more than 80% over the prior year, and it reflects an increase of over 400% from 2023.</p>
<p>Palantir is on pace to be the fifth-most bought security on balance for the year, Vanda data shows. The stock sits behind only megacap names like <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-4">Tesla<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span> and <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-5">Nvidia<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span> and popular exchange-traded funds such as the <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-6">SPDR S&#038;P 500 ETF Trust (SPY)<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span>, which tracks the entire U.S. market benchmark.</p>
<p>&#8220;It&#8217;s been great,&#8221; said Viraj Patel, deputy head of research at Vanda, which tracks retail trader flows. ​​&#8221;Palantir has kind of been brought into this group of AI-tech poster [children].&#8221;</p>
<h2 class="ArticleBody-subtitle">An &#8216;insane&#8217; business</h2>
<p>Palantir has won the hearts of retail investors amid its takeoff as a stock. Its shares have surged more than 150% so far in 2025, placing the name on track for its third straight year with triple-digit gains.</p>
<p>The stock has skyrocketed nearly 3,000% in the last three years, crushing the <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-7">S&#038;P 500<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span>&#8216;s roughly 80% gain and the technology-heavy <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-8">Nasdaq Composite<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span>&#8216;s more than 120% climb in the same time frame.</p>
<p>Stock Chart IconStock chart icon</p>
<p><iframe title="Palantir vs. the S&#038;P 500 and Nasdaq Composite, 1-year chart" src="https://www.cnbc.com/appchart?symbol=PLTR&#038;range=1Y&#038;comp=.SPX%2C.IXIC&#038;type=mountain&#038;embedded=true&#038;$DEVICE$=undefined" height="460" scrolling="no" loading="lazy" style="border:0;width:100%"></iframe></p>
<p>Palantir vs. the S&#038;P 500 and Nasdaq Composite, 1-year chart</p>
<p>Since its 2020 market debut, Palantir has been considered a mysterious enterprise given its business with both public and private entities.</p>
<p>On the surface level, Palantir helps both governments and major corporations organize their data. Beyond being viewed as a beneficiary of the push to adopt AI, it&#8217;s seen as a winner under the Trump administration&#8217;s priorities of increasing federal government efficiency and bolstering national defense.</p>
<p>&#8220;The joke for a while has always been like, &#8216;What does Palantir even do?'&#8221; said Paxton Earl, an investment banker with a focus on software who began reading regulatory reports to better understand the company. After learning more, he remembers thinking: &#8220;This is actually an insane business. It&#8217;s really good.&#8221;</p>
<p>Earl discovered through research that the company&#8217;s revenue was more diversified beyond military work than he initially predicted. In addition, the 23-year-old found Palantir worked with consumer-facing brands he knew like Ferrari and Wendy&#8217;s.</p>
<p>The logo of U.S. software company Palantir Technologies is seen in Davos, Switzerland, on Jan. 22, 2020.</p>
<p>Arnd Wiegmann | Reuters</p>
<p>The San Diego resident said he picked up more shares following the company&#8217;s third-quarter earnings report in early November. Palantir tanked 16% that month as investors dumped their AI plays on valuation fears, and the stock posted its worst monthly performance in more than two years.</p>
<p>Wall Street largely chalked up the sell-off to profit-taking and broader concerns about the health of the AI trade. Vanda found the bulk of Palantir&#8217;s retail buying took place in the first nine months of the year, then cooled off as growing fears of an AI bubble left investors questioning the trade.</p>
<h2 class="ArticleBody-subtitle">A retail &#8216;romance&#8217;</h2>
<p>Palantir has gone out of its way to court individual traders like Earl.</p>
<p>While other well-known companies typically reserve the question-and-answer portions of earnings calls for Wall Street analysts or journalists, Palantir also takes inquiries from retail investors. In an annual video shared from a ski trail late last year, CEO Alex Karp specifically shouted out these small shareholders.</p>
<p>&#8220;Exceedingly grateful to all of you individual investors who took the time and opportunity, and had the courage to look past conventional, rusty, crusty platitudes,&#8221; Karp said, while was wearing reflective goggles and gripping ski poles.</p>
<p>The stock has become a hot topic on the popular WallStreetBets <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-20">Reddit<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span> forum. On several days in 2025, it was the most mentioned stock on the discussion board, according to meme stock tracking firm Breakout Point.</p>
<p>Palantir &#8220;has been a long-standing WallStreetBets romance,&#8221; said Ivan Ćosović, managing director at Breakout Point. &#8220;They adore it.&#8221;</p>
<h2 class="ArticleBody-subtitle">Big money&#8217;s hesitancy</h2>
<p>Wall Street hasn&#8217;t jumped on board with the same fervor as the average Joe. The average analyst polled by LSEG has a hold rating, with several citing apprehension about the stock&#8217;s multiple.</p>
<p>The company&#8217;s valuation has made its stock a &#8220;non-starter&#8221; for institutional clients, according to Gil Luria, head of technology research at D.A. Davidson. Palantir has a multiple of around 450 times trailing earnings, running circles around the S&#038;P 500&#8217;s average of close to 28.</p>
<p>On the other hand, Luria said retail investors are likely impressed by Palantir&#8217;s &#8220;ambitious&#8221; mission to play a role in defending the U.S. These everyday investors are likely also enticed by Karp, who Luria said is similar to <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-24">Tesla<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span> CEO Elon Musk in his ability to sell a business vision. However, Luria said Karp hasn&#8217;t attracted the same amount of controversy.</p>
<p>Alex Karp, chief executive officer of Palantir Technologies Inc., speaks during the AIPCon conference in Palo Alto, California, US, on March 13, 2025.</p>
<p>David Paul Morris | Bloomberg | Getty Images</p>
<p>Luria said Palantir also draws parallels to Tesla&#8217;s stock 10 years ago, when the carmaker was presenting an electric vehicle-focused future. Tesla shares have soared about 3,000% in the past decade, while the S&#038;P 500 has gained more than 230% in the same period.</p>
<p>The question, Luria said, is if the retail crowd who backed Tesla a decade ago are right once again about Palantir.</p>
<p>The analyst said Palantir&#8217;s earnings results have been largely strong over the last several years. Palantir&#8217;s second-quarter report in August — in which the company topped the Street&#8217;s estimates and raised its full-year guidance due to the AI boom — left him questioning if the stock is worth jumping into despite the lofty multiple. </p>
<p>&#8220;Even us most jaded, old, stodgy Wall Street analysts were taken aback by the level of success,&#8221; Luria said. &#8220;It was such a staggering success that I had to reconsider everything I knew.&#8221;</p>
<p>Scion Asset Management — the now-de-registered fund run by &#8220;The Big Short&#8221; investor Michael Burry —  revealed bets against Palantir and fellow AI darling Nvidia in the third quarter. Karp told CNBC that Burry&#8217;s move was &#8220;bats&#8212; crazy.&#8221;</p>
<p><span class="InlineVideo-videoButton"/><span/></p>
<h2 class="ArticleBody-subtitle">Overvaluation or destiny?</h2>
<p>Retail investors are undeterred by the wariness among their institutional counterparts. As Breakout Point&#8217;s Ćosović put it: where Burry sees &#8220;overvaluation,&#8221; WallStreetBets sees &#8220;destiny.&#8221;</p>
<p>Palantir has had its fair share of choppiness this year, falling more than 10% on multiple single trading days. But for stakeholders like Dijamco, the California-based marketer, these fluctuations provide cheaper entry points to buy into a name that they believe in.</p>
<p>&#8220;You kind of become a little bit desensitized to the price swings,&#8221; said Dijamco, who plans to purchase thousands of dollars&#8217; worth of additional shares on the next big downturn. &#8220;I just have that conviction that it&#8217;s going to do well.&#8221;</p>
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		<title>Is Slate Auto’s Electric Truck the Answer to Expensive Cars?</title>
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		<pubDate>Wed, 14 May 2025 04:31:38 +0000</pubDate>
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					<description><![CDATA[<p>When Slate Auto, a start-up, unveiled a roughly $25,000 electric pickup truck last month, social media lit up with comments. Many people saw the no-frills vehicle, with an easy-to-repair body and nostalgic hand crank windows, as a refreshing antidote to today’s overstuffed and increasingly unaffordable cars. How unaffordable? Average monthly payments on new cars have [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://www.ourstoryinsight.com/is-slate-autos-electric-truck-the-answer-to-expensive-cars/">Is Slate Auto’s Electric Truck the Answer to Expensive Cars?</a> appeared first on <a rel="nofollow" href="https://www.ourstoryinsight.com">Our Story Insight</a>.</p>
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										<content:encoded><![CDATA[<p></p>
<p class="css-at9mc1 evys1bk0">When Slate Auto, a start-up, unveiled a roughly $25,000 electric pickup truck last month, social media lit up with comments. Many people saw the no-frills vehicle, with an easy-to-repair body and nostalgic hand crank windows, as a refreshing antidote to today’s overstuffed and increasingly unaffordable cars.</p>
<p class="css-at9mc1 evys1bk0">How unaffordable? Average monthly payments on new cars have soared to $739 in March from $537 in January 2019, according to Cox Automotive. The average new car costs $47,400, with electric models around $59,200. High interest rates, now around 9.4 percent for a 72-month loan, have made cars even more of a financial stretch.</p>
<p class="css-at9mc1 evys1bk0">“Prices and interest rates are both high and stuck,” said Mark Schirmer, director of industry insights for Cox Automotive. “If you haven’t been in the market since 2018, it’s got to be shocking what a car costs.”</p>
<p class="css-at9mc1 evys1bk0">President Trump’s tariffs of 25 percent on imported cars and parts have consumers scrambling to buy before prices rise even more. Cars that cost less than $30,000 are especially vulnerable — nearly 80 percent of those are subject to tariffs. They include consumer staples like the American-made Honda Civic and Toyota Corolla, which rely on imported parts. Supplies of budget models are expected to shrink, and automakers may stop importing certain models entirely.</p>
<p class="css-at9mc1 evys1bk0">Enter Slate, a company based in the Detroit suburbs backed by venture capital firms and Jeff Bezos, the Amazon founder.</p>
<p class="css-at9mc1 evys1bk0">Chris Barman, a former Fiat Chrysler engineer and Slate’s chief executive, said the Slate Truck was expressly designed to ease sticker shock, although it won’t be available until late 2026. The company plans to produce the pint-size truck at a retrofitted printing plant in Indiana, with a capacity for 150,000 a year.</p>
<p class="css-at9mc1 evys1bk0">True to its name, the truck is designed to be a blank slate to which buyers can add more than 100 accessories, like power windows and heated seats, as their budgets allow or needs change. There is no built-in stereo or touch-screen display, but there are docks for phones or tablets, saving money and avoiding the digital obsolescence that often plagues auto entertainment and navigation systems.</p>
<p class="css-at9mc1 evys1bk0">“We think hardworking Americans are looking for good value for the money,” Ms. Barman said in a recent interview.</p>
<p class="css-at9mc1 evys1bk0">That message appealed to Liv Leigh, 41, who hopped inside a Slate Truck during its public debut at the Long Beach Airport in California in April. Ms. Leigh, a biomedical designer and electric-car enthusiast, paid $50 to reserve a Slate.</p>
<p class="css-at9mc1 evys1bk0">She watched the company’s employees transform the two-seat pickup into a five-passenger sport utility vehicle in about one hour, with a clever conversion kit aimed at do-it-yourself owners. Ms. Leigh appreciated the truck’s tidy size, shorter than a Civic, and its modest 150-mile range.</p>
<p class="css-at9mc1 evys1bk0">“I love the idea of an absolute base, beater truck, where I can stick a dog or muddy bikes or plywood in back,” Ms. Leigh said. “I don’t need a giant vehicle to haul stuff.”</p>
<p class="css-at9mc1 evys1bk0">Ms. Barman said efficient design and production were key to the company’s promised low prices. The truck’s gray plastic-composite body panels eliminate any need for a steel body-stamping plant or paint shop, which can cost automakers many millions of dollars.</p>
<p class="css-at9mc1 evys1bk0">Where a Ford Model T, an egalitarian car of another age, famously came only in black, Slate offers vinyl body wraps in 13 colors, for an extra $500. Buyers can also opt for a larger, factory-installed battery with a 240-mile range.</p>
<p class="css-at9mc1 evys1bk0">“That all keeps costs down, but also feeds into giving customers freedom of choice,” Ms. Barman said. “They can outfit the vehicle the way they want it, not the way a manufacturer has designed it.”</p>
<p class="css-at9mc1 evys1bk0">Slate hopes that a U.S.-based supply chain, including batteries made by SK On, a South Korean company, will make the pickup eligible for a $7,500 federal tax credit. Republican lawmakers on Monday released a budget bill that would eliminate that incentive and dismantle other Biden-era climate and energy policies.</p>
<p class="css-at9mc1 evys1bk0">That all depends on Slate’s successfully navigating a treacherous path for electric vehicle start-ups. Several young automakers, including Fisker, Nikola and Canoo, have sought bankruptcy protection and shut down.</p>
<p class="css-at9mc1 evys1bk0">With or without subsidies, Slate has a viable business plan, Ms. Barman said.</p>
<p class="css-at9mc1 evys1bk0">The company hopes to price its truck in the mid-$20,000s before government incentives, which would undercut the Nissan Leaf, which is the most affordable electric car at $29,300 but no longer eligible for tax credits. Chevrolet plans to offer a redesigned Bolt S.U.V. by year end for roughly $30,000. The General Motors brand intends the Bolt to qualify for the tax credit, dropping its effective price to roughly $22,500.</p>
<p class="css-at9mc1 evys1bk0">Erin Keating, the executive analyst of Cox Automotive, praised the Slate Truck’s ingenuity. But she said a pickup with two seats, short range and a bare-bones interior might not appeal to American car buyers who have grown accustom to having many tech and creature comforts.</p>
<p class="css-at9mc1 evys1bk0">“There’s nothing wrong with trying to crack the affordability crisis, but I don’t see this as a massive volume seller,” Ms. Keating said. “Ultimately, this is an extremely small E.V. with almost nothing in it, in a market with a growing number of affordable choices with much longer range.”</p>
<p class="css-at9mc1 evys1bk0">The Ford Maverick is a potential rival that may argue for or against Slate’s prospects. That compact pickup is two feet longer than the Slate. It seats five passengers and offers many more features. A hybrid version can reach 40 miles per gallon and travel more than 500 miles on a full tank.</p>
<p class="css-at9mc1 evys1bk0">Ford sold 131,000 Mavericks last year, suggesting there is strong demand for small, energy-efficient trucks. The company has raised the starting price of the hybrid version of the truck by $4,200 since 2024, to $28,150, including an increase last week that Ford Motor acknowledged was partly a response to tariffs on the truck, which is assembled in Mexico. The company said it was not passing on the full cost of the tariffs to customers and would offer all of its cars for the same price it sells them to employees until early July.</p>
<p class="css-at9mc1 evys1bk0">As much as any vehicle category, America’s pickup trucks epitomize how cars have changed over the last several decades, mostly by becoming bigger, more powerful and a lot more expensive. Some lavish pickups can cost as much as large European luxury sedans. Electric trucks from Tesla, Rivian and Ford range from $70,000 to more than $100,000.</p>
<p class="css-at9mc1 evys1bk0">Ms. Barman sees a market opening for entry-level truck fans, families shopping for a second car, empty nesters, and businesses such as landscapers, contractors and delivery workers. The company expects to sell many trucks to people who otherwise would buy a used car, the average price of which is $26,000.</p>
<p class="css-at9mc1 evys1bk0">One big challenge for Slate, or other companies hoping to sell more affordable cars, is that despite what they say they want, many Americans don’t seem to buy such cars.</p>
<p class="css-at9mc1 evys1bk0">Ms. Keating noted that roughly two dozen models on the market start at less than $25,000. All are small cars or S.U.V.s, including the market’s lowest-price car, the $18,300 Nissan Versa.</p>
<p class="css-at9mc1 evys1bk0">Nearly every midsize family sedan starts at less than $30,000, including the Honda Accord, Toyota Camry and Hyundai Sonata. But many Americans have rejected those cars in favor of bigger vehicles. S.U.V.s, pickups and minivans now account for more than 80 percent of the market.</p>
<p class="css-at9mc1 evys1bk0">Mr. Trump’s trade policies remain a wild card. Analysts expect tariffs will add thousands of dollars to the prices of new cars and drive up the demand and prices for used cars.</p>
<p class="css-at9mc1 evys1bk0">Americans bought 1.5 million new cars in April, 400,000 more than in April 2024. But analysts said people were buying now to avoid being raked over later. Jonathan Smoke, the chief economist at Cox Automotive, said new-car inventories had fallen to their lowest levels in two years, suggesting that prices could rise as dealers run out of cars made before tariffs took effect. S&#038;P Global Mobility, another research firm, has lowered its forecast for new-car sales and now expects them to fall 4 percent this year.</p>
<p class="css-at9mc1 evys1bk0">For people seeking safe harbor in a financial storm, electric cars are a smart choice, Ms. Keating said. Between government and automaker incentives, new electric cars were discounted by 13.3 percent on average in March, a nearly $8,000 savings.</p>
<p class="css-at9mc1 evys1bk0">Ms. Leigh recently leased a Chevrolet Equinox for two years, paying $5,500 upfront, which works out to a monthly payment of $230. The electric S.U.V. has a 319-mile driving range. “Some people don’t realize how many incentives are out there,” she said.</p>
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		<title>Trump’s Tariffs Leave Automakers With Tough, Expensive Choices</title>
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		<pubDate>Sun, 30 Mar 2025 15:13:50 +0000</pubDate>
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					<description><![CDATA[<p>Follow live updates on the Trump administration here. Automakers can respond to President Trump’s new 25 percent tariffs on imported cars and parts in several ways. But all of them cost money and will lead to higher car prices, analysts say. Manufacturers can try to move production from countries like Mexico to the United States. [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://www.ourstoryinsight.com/trumps-tariffs-leave-automakers-with-tough-expensive-choices/">Trump’s Tariffs Leave Automakers With Tough, Expensive Choices</a> appeared first on <a rel="nofollow" href="https://www.ourstoryinsight.com">Our Story Insight</a>.</p>
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										<content:encoded><![CDATA[<p></p>
<p class="css-at9mc1 evys1bk0">Follow live updates on the Trump administration here.</p>
<p class="css-at9mc1 evys1bk0">Automakers can respond to President Trump’s new 25 percent tariffs on imported cars and parts in several ways. But all of them cost money and will lead to higher car prices, analysts say.</p>
<p class="css-at9mc1 evys1bk0">Manufacturers can try to move production from countries like Mexico to the United States. They can try to increase the number of cars they already make here. They can stop selling imported models, especially ones that are less profitable.</p>
<p class="css-at9mc1 evys1bk0">But whatever carmakers decide, car buyers can expect to pay more for new and used vehicles. Estimates vary widely and depend on the model, but the increase could range from around $3,000 for a car made in the United States to well over $10,000 for imported models.</p>
<p class="css-at9mc1 evys1bk0">Those figures do not take into account additional tariffs that Mr. Trump said he would announce next week to punish countries that impose tariffs on U.S. goods. He has also said he would increase tariffs further if trading partners like Canada and the European Union raise tariffs in response to his auto tariffs, leading to an escalating tit-for-tat trade war.</p>
<p class="css-at9mc1 evys1bk0">“It’s going to be disruptive and expensive for American consumers for several years,” said Michael Cusumano, professor of management at the MIT Sloan School of Management.</p>
<p class="css-at9mc1 evys1bk0">Mr. Trump has long brandished tariffs. But many auto executives had hoped that his threats were a negotiating tool. Mr. Trump dashed those hopes on Wednesday when he said at the White House that the tariffs were “100 percent” permanent.</p>
<p class="css-at9mc1 evys1bk0">Mr. Trump framed the tariffs as a way to bring car manufacturing back to the United States. The United Automobile Workers union agreed, saying automakers could reopen plants in places like Lordstown, Ohio, or expand production in cities like Warren, Mich., where auto workers have been laid off.</p>
<p class="css-at9mc1 evys1bk0">“It is now on the automakers, from the Big Three to Volkswagen and beyond, to bring back good union jobs to the U.S.,” Shawn Fain, the U.A.W. president, said in a statement Wednesday, referring to General Motors, Ford Motor and Stellantis, owner of Chrysler, Jeep and Ram.</p>
<p class="css-at9mc1 evys1bk0">But relocating factories is costly and time consuming. Carmakers usually need at least two years to set up a new assembly line and ensure that the vehicles it produces meet quality standards. To fully avoid tariffs, they would also need to relocate devilishly complicated supply chains that often involve suppliers in dozens of countries.</p>
<p class="css-at9mc1 evys1bk0">Tariffs could encourage companies to choose locations in the United States instead of Mexico or Canada when they are contemplating where to expand production or build a new model. But choosing a site because of tariffs, and not because it is the most efficient place to manufacture, would come at a cost to consumers.</p>
<p class="css-at9mc1 evys1bk0">Some companies may hesitate to make those decisions, which can cost hundreds of millions of dollars, because they worry that Mr. Trump, despite assurances to the contrary, may change his mind. Or the next president could reverse his tariffs.</p>
<p class="css-at9mc1 evys1bk0">“What we hear from a lot of clients is, ‘How do we justify that capital expenditure without knowing if this is a long-term process?’” said Kevin Williams, a senior director at the law firm Clark Hill who specializes in trade. “You make that investment and two years from now they say, ‘Never mind.’”</p>
<p class="css-at9mc1 evys1bk0">Carmakers, several of which declined to comment, will probably avoid passing on the entire cost of the tariffs to consumers. If they raise prices too much, sales could plummet, leading to a death spiral of sinking revenue and rising costs. Economists worry that the financial disruption caused by tariffs could help provoke a recession.</p>
<p class="css-at9mc1 evys1bk0">Some carmakers have been stockpiling parts and finished cars before tariffs kick in, but that will hold down prices only for a while.</p>
<p class="css-at9mc1 evys1bk0">“Tariffs are just going to make people pay more for cars, and people will buy fewer cars,” said W.C. Benton, a professor of operations and supply chain management at Ohio State University.</p>
<p class="css-at9mc1 evys1bk0">New cars are already beyond the reach of many Americans — the average sale price these days is more than $48,000, according to Cox Automotive. Prices of used cars are also expected to rise, as they did during the pandemic, as more buyers look for affordable options.</p>
<p class="css-at9mc1 evys1bk0">Most automakers are not extremely profitable and have limited financial room to maneuver. General Motors, which is among the more profitable companies, had a net profit on sales last year of 3.2 percent. As a result, carmakers will have to pass much of the cost of tariffs on to their customers.</p>
<p class="css-at9mc1 evys1bk0">If so, tariffs could add $15,000 to the price of a Ram 1500 pickup, nearly $12,000 to a Toyota Tacoma pickup, $9,000 to a Subaru Forester S.U.V. and $6,000 to a Nissan Sentra sedan, according to estimates by iSeeCars, an online car buying site.</p>
<p class="css-at9mc1 evys1bk0">Some carmakers are already raising prices. Ferrari, whose Italian-made sports cars sell for hundreds of thousands of dollars, said Thursday that it would increase prices by as much as 10 percent on some models in response to tariffs.</p>
<p class="css-at9mc1 evys1bk0">Automakers may stop selling some less profitable models, which tend to be smaller and more affordable. They will promote domestically made cars and trucks, many of which are larger and more expensive. All major carmakers, including foreign brands like Mercedes-Benz, BMW, Volkswagen, Honda and Toyota, have large factories in the United States.</p>
<p class="css-at9mc1 evys1bk0">But no cars will be exempt from tariffs because all have foreign-made parts, which typically account for at least a third of the vehicle’s value. That portion will be subject to a 25 percent tariff, according to the Trump administration.</p>
<p class="css-at9mc1 evys1bk0">“There’s no such thing as an American car,” said Simon Geale, an executive vice president at Proxima, a consulting firm that advises companies on procurement.</p>
<p class="css-at9mc1 evys1bk0">Some carmakers may avoid making big changes to their operations in response to the tariffs, betting that the consequences will be so severe that the Trump administration will have to backpedal.</p>
<p class="css-at9mc1 evys1bk0">“There’s going to be an incredible backlash from American consumers,” said Mr. Cusumano of M.I.T. “I would hope there would be some response to that.”</p>
<p class="css-798hid etfikam0">Ana Swanson contributed reporting.</p>
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		<title>Barbies and Hot Wheels more expensive under Trump tariffs</title>
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		<pubDate>Wed, 05 Feb 2025 14:55:41 +0000</pubDate>
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					<description><![CDATA[<p>The new and old versions of the classic Barbie dolls are on display at Mattel Design Center in El Segundo, California, U.S., February 22, 2024.  Mario Anzuoni &#124; Reuters Mattel could soon raise the prices of toys like Barbie and Hot Wheels in response to new tariffs imposed by President Donald Trump, executives said Tuesday.  [&#8230;]</p>
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										<content:encoded><![CDATA[<p><span class="HighlightShare-hidden" style="top:0;left:0"/></p>
<p>The new and old versions of the classic Barbie dolls are on display at Mattel Design Center in El Segundo, California, U.S., February 22, 2024. </p>
<p>Mario Anzuoni | Reuters</p>
<p><span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-1">Mattel<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span> could soon raise the prices of toys like Barbie and Hot Wheels in response to new tariffs imposed by President Donald Trump, executives said Tuesday. </p>
<p>The toy giant, which manufactures about 40% of its toys in China and less than 10% in Mexico, told analysts that it will look to move around its supply chain to mitigate the impact of tariffs,<strong> </strong>but it&#8217;s also considering price hikes.</p>
<p>&#8220;Certainly against the tariff, we have a range of mitigating actions,&#8221; said finance chief Anthony DiSilvestro on the company&#8217;s fiscal fourth quarter earnings call. He said those actions include leveraging Mattel&#8217;s supply chains and &#8220;potential price increases.&#8221; </p>
<p>&#8220;We do work closely with our retail partners to achieve the right balance and always keep consumers in mind when we consider pricing actions,&#8221; he added. </p>
<p>The comments come after Trump imposed a 10% tariff on Chinese goods this week. He also paused planned 25% duties on imports from Mexico and Canada for 30 days.</p>
<p>Economists on both sides of the aisle have agreed that the levies will likely to lead to price increases for consumers. There&#8217;s no guarantee Trump will impose the tariffs on Mexico and Canada, as he has often used the threat of duties as a negotiating tactic to bend foreign governments to his will. </p>
<p>Hot Wheels cars by Mattel are offered for sale at a big-box store in Chicago on April 23, 2024.</p>
<p>Scott Olson | Getty Images</p>
<p>Shortly after Trump announced the 25% tariff on goods from Canada and Mexico, both countries announced they would bolster security at their respective borders, leading Trump to suspend the duties. The two nations had already been enhancing border security before Trump&#8217;s threat.</p>
<p>China and the U.S. have yet to come to a similar agreement to avoid the tariffs. If the 10% duty remains in effect, it will have a significant impact on the toy industry, which sources about 80% of its goods from the region. </p>
<p>While companies like Mattel have said publicly that they plan to leverage their supply chains and work with suppliers to mitigate the effects of the tariffs, executives have admitted privately that they&#8217;re loath to take on the cost themselves and reduce profits. If they aren&#8217;t able to pass on the entire cost of the tariffs to suppliers, some plan to have consumers pay the rest through price hikes.</p>
<p>Some companies with diversified supply chains like Mattel, which operates its own and third-party factories in seven different countries, have more flexibility to move production and lean on suppliers to lessen the hit to profits. It also does about 40% of its business outside of North America, where tariffs aren&#8217;t being imposed in the same way they are in the U.S. </p>
<p>By 2027, Mattel expects sourcing from Mexico and China to represent more than 25% of total global production, down from about 50% now. It doesn&#8217;t currently source from Canada.</p>
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		<title>Trump tariff plan threatens to make Modelo more expensive</title>
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		<pubDate>Sun, 01 Dec 2024 20:59:45 +0000</pubDate>
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					<description><![CDATA[<p>Packages of Modelo Especial beer are displayed for sale in a grocery store on June 14, 2023 in Los Angeles, California.  Mario Tama &#124; Getty Images Shares of Constellation Brands fell 3.5% on Tuesday after President-elect Donald Trump announced plans to place a 25% tariff on Mexican imports once he&#8217;s inaugurated. Constellation imports all of [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://www.ourstoryinsight.com/trump-tariff-plan-threatens-to-make-modelo-more-expensive/">Trump tariff plan threatens to make Modelo more expensive</a> appeared first on <a rel="nofollow" href="https://www.ourstoryinsight.com">Our Story Insight</a>.</p>
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<p>Packages of Modelo Especial beer are displayed for sale in a grocery store on June 14, 2023 in Los Angeles, California. </p>
<p>Mario Tama | Getty Images</p>
<p>Shares of <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-1">Constellation Brands<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span> fell 3.5% on Tuesday after President-elect Donald Trump announced plans to place a 25% tariff on Mexican imports once he&#8217;s inaugurated.</p>
<p>Constellation imports all of its beer from Mexico, including Modelo and Corona. Beer accounted for 86% of Constellation&#8217;s sales in the first half of its fiscal year.</p>
<p>Shares of Constellation have fallen more than 3% this year, including Tuesday&#8217;s move. The brewer has a market cap of about $42 billion.</p>
<p>If implemented, Trump&#8217;s proposed tariff would raise Constellation Brands&#8217; cost of goods sold by roughly 16%, according to a research note from Wells Fargo Securities analyst Chris Carey published on Tuesday.</p>
<p>To offset the tariffs, Constellation would likely raise prices. The brewer has some pricing power, even with inflation-weary consumers. Last year, Modelo Especial overtook Bud Light as the bestselling beer in the U.S.</p>
<p>It&#8217;s unlikely that Constellation would move its beer production out of Mexico. Thanks to an antitrust settlement between <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-5">Anheuser-Busch InBev<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span>, Grupo Modelo and the Department of Justice in 2013, AB InBev had to sell Modelo&#8217;s U.S. business to Constellation. That agreement requires Constellation to produce those beer brands where AB InBev makes them, according to a research note from Roth MKM analyst Bill Kirk.</p>
<p>In recent years, Constellation has spent billions of dollars to expand its Mexican production capacity.</p>
<p>It&#8217;s unclear if Trump will actually enact his planned tariffs. In his previous term, he proposed a 5% tariff on Mexican imports, with plans to escalate the levies up to 25%, but those tariffs weren&#8217;t implemented.</p>
<p>In 2020, Trump signed a new trade agreement with Mexico and Canada into law.</p>
<p>In the Monday night post on his social media platform Truth Social, Trump also threatened to implement an additional 10% tariff on goods from China and a 25% levy on Canadian imports.</p>
<p>Shares of automakers, including General Motors and Stellantis, were also trading lower on Tuesday on tariff fears.</p>
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<p>The post <a rel="nofollow" href="https://www.ourstoryinsight.com/trump-tariff-plan-threatens-to-make-modelo-more-expensive/">Trump tariff plan threatens to make Modelo more expensive</a> appeared first on <a rel="nofollow" href="https://www.ourstoryinsight.com">Our Story Insight</a>.</p>
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