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	<title>Tuesday &#8211; Our Story Insight</title>
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		<title>5 things to know before the stock market opens Tuesday</title>
		<link>https://www.ourstoryinsight.com/5-things-to-know-before-the-stock-market-opens-tuesday/</link>
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		<pubDate>Tue, 06 Jan 2026 14:17:15 +0000</pubDate>
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					<description><![CDATA[<p>This is CNBC&#8217;s Morning Squawk newsletter. Subscribe here to receive future editions in your inbox. Happy Tuesday. We&#8217;re not even a week into the new year and I&#8217;ve already started telling myself that my resolution to read more can include reviewing drafts of this newsletter. Stock futures are little changed this morning. The market is coming off [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://www.ourstoryinsight.com/5-things-to-know-before-the-stock-market-opens-tuesday/">5 things to know before the stock market opens Tuesday</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>This is CNBC&#8217;s Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.</p>
<p>Happy Tuesday. We&#8217;re not even a week into the new year and I&#8217;ve already started telling myself that my resolution to read more can include reviewing drafts of this newsletter.</p>
<p>Stock futures are little changed this morning. The market is coming off a winning session.</p>
<p>Here are five key things investors need to know to start the trading day:</p>
<h2 class="ArticleBody-subtitle">1. Maduro&#8217;s plea</h2>
<p>Captured Venezuelan President Nicolas Maduro and his wife Cilia Flores are escorted, as they heads towards the Daniel Patrick Moynihan United States Courthouse in Manhattan for an initial appearance to face U.S. federal charges including narco-terrorism, conspiracy, drug trafficking, money laundering and others, at Downtown Manhattan Heliport, in New York City, U.S., Jan. 5, 2026. </p>
<p>Adam Gray | Reuters</p>
<p>Investor attention yesterday concentrated on the U.S.&#8217; strike on Venezuela over the weekend. Ousted Venezuelan leader Nicolas Maduro pleaded not guilty to drug trafficking charges in a New York City court yesterday, saying he was &#8220;kidnapped&#8221; and a &#8220;prisoner of war.&#8221; </p>
<p>Here&#8217;s how the market reacted to the military operation:</p>
<h2 class="ArticleBody-subtitle">2. Bank teller</h2>
<p>Neel Kashkari, President and CEO, Federal Reserve Bank of Minneapolis, speaks at the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton in Beverly Hills, California, U.S., May 7, 2024. </p>
<p>David Swanson | Reuters</p>
<p>Minneapolis Federal Reserve President Neel Kashkari told CNBC yesterday that interest rates may not need to come down much further. </p>
<p>&#8220;My guess is we&#8217;re pretty close to neutral right now,&#8221; Kashkari said on &#8220;Squawk Box.&#8221; He said he believes inflation is still too high and that monetary policy appears to not have been tight enough in recent years.</p>
<p>On the labor front, Kashkari said artificial intelligence has caused a slowdown in hiring among big companies while also creating productivity gains. His comments come ahead of tomorrow&#8217;s ADP employment report and November&#8217;s Job Openings and Labor Turnover data, followed by the all-important nonfarm payroll report on Friday.</p>
<h2 class="ArticleBody-subtitle">3. Mileage may vary</h2>
<p>The Camp Jeep outdoor terrain at the New York International Auto Shown on April 16, 2025. </p>
<p>Danielle DeVries | CNBC</p>
<p><span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="SpecialReportArticle-QuoteInBody-17">General Motors<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span> reported a 5.5% annual U.S. sales increase in 2025 yesterday. As CNBC&#8217;s Michael Wayland notes, that should make it a top performer: Cox Automotive expects the broader sector to rise around just 2%.</p>
<p>On the other hand, Chrysler parent <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="SpecialReportArticle-QuoteInBody-19">Stellantis<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span> saw its sales slide 3.3%. But it wasn&#8217;t all bad: The automaker&#8217;s Jeep brand posted growing sales for the first time since 2018.</p>
<p>Electric vehicle maker <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="SpecialReportArticle-QuoteInBody-20">Lucid<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span>, meanwhile, said deliveries surged 55% in 2025, driven by a 70% annual increase in the fourth quarter. Lucid has been building out production of its Gravity SUV despite supply chain snafus.</p>
<h2 class="RelatedContent-header">Get Morning Squawk directly in your inbox</h2>
<h2 class="ArticleBody-subtitle">4. AI in AVs</h2>
<p>Nvidia founder and CEO Jensen Huang speaks during Nvidia Live at CES 2026 ahead of the annual Consumer Electronics Show in Las Vegas, Nevada, on Jan. 5, 2026.</p>
<p>Patrick T. Fallon | AFP | Getty Images</p>
<p><span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="SpecialReportArticle-QuoteInBody-22">Nvidia<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span> is testing the robotaxi waters. The company said yesterday that it&#8217;s working with operators in hopes of having them use Nvidia&#8217;s AI chips and software in their autonomous vehicle fleets as early as next year.</p>
<p>As CNBC&#8217;s Kif Leswing notes, it&#8217;s the AI titan&#8217;s latest foray into the automotive sector. Nvidia announced a robotaxi partnership with <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="SpecialReportArticle-QuoteInBody-24">Uber<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span> last year. The company also said last month that Mercedes-Benz models released in later this year should be able to use its software for navigating cities like San Francisco.</p>
<h2 class="ArticleBody-subtitle">5. &#8216;Secret sauce&#8217;</h2>
<p>Exterior view of the new JPMorgan Chase global headquarters building at 270 Park Avenue on Nov. 13, 2025 in New York City. </p>
<p>Angela Weiss | AFP | Getty Images</p>
<p><span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="SpecialReportArticle-QuoteInBody-25">JPMorgan <span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span>launched a new initiative yesterday that gives select clients access to insights on the bank&#8217;s approach to major topics. In other words, its new &#8220;Special Advisory Services&#8221; will provide a look at parts of the recipe for JPMorgan&#8217;s &#8220;secret sauce.&#8221;</p>
<p>Liz Myers, the bank&#8217;s global chair of investment banking, is leading the effort. Myers told CNBC&#8217;s Leslie Picker that JPMorgan&#8217;s capabilities are &#8220;on par or better&#8221; than what some specialized consultancies offer.</p>
<p>JPMorgan will offer insights on a range of topics, including investor relations and real estate selection. Initially, the bank will not charge for these services, but it said it could institute a fee structure for clients needing support on prolonged or more time-consuming projects.</p>
<h2 class="ArticleBody-subtitle">The Daily Dividend</h2>
<p>Matt Mahan, the mayor of San Jose, California, rebuked the so-called billionaires tax that has been the talk of Silicon Valley. It was a notable break from Rep. Ro Khanna, a fellow Democrat who has been under fire from the technology elite over his support of the proposed ballot measure.</p>
<p>Driving billionaires out of state might feel good in the short run but working people (as is almost always the case) will pick up the tab for this political ploy.</p>
<p>Matt Mahan</p>
<p>Mayor of San Jose, California, on X</p>
<p>CNBC&#8217;s Dan Mangan, Spencer Kimball, Hugh Leask, Sean Conlon, Jeff Cox, Ashley Capoot, Michael Wayland, Kif Leswing, Leslie Picker and Jordan Novet contributed to this report. Josephine Rozelle edited this edition.</p>
<p>The post <a rel="nofollow" href="https://www.ourstoryinsight.com/5-things-to-know-before-the-stock-market-opens-tuesday/">5 things to know before the stock market opens Tuesday</a> appeared first on <a rel="nofollow" href="https://www.ourstoryinsight.com">Our Story Insight</a>.</p>
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		<title>&#8216;Jimmy Kimmel Live&#8217; will return to ABC on Tuesday</title>
		<link>https://www.ourstoryinsight.com/jimmy-kimmel-live-will-return-to-abc-on-tuesday/</link>
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		<pubDate>Tue, 23 Sep 2025 07:50:01 +0000</pubDate>
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		<guid isPermaLink="false">https://www.ourstoryinsight.com/?p=9564</guid>

					<description><![CDATA[<p>Disney plans to bring &#8220;Jimmy Kimmel Live!&#8221; back to air on ABC&#8217;s broadcast network beginning on Tuesday, the company said in a statement. The decision was announced nearly a week after ABC said it was suspending the late night show indefinitely. The network had pulled the show days after the host made comments linking the [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://www.ourstoryinsight.com/jimmy-kimmel-live-will-return-to-abc-on-tuesday/">&#8216;Jimmy Kimmel Live&#8217; will return to ABC on Tuesday</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"/><span class="InlineVideo-videoButton"/><span/></p>
<p><span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-1">Disney<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span> plans to bring &#8220;Jimmy Kimmel Live!&#8221; back to air on ABC&#8217;s broadcast network beginning on Tuesday, the company said in a statement.</p>
<p>The decision was announced nearly a week after ABC said it was suspending the late night show indefinitely. The network had pulled the show days after the host made comments linking the alleged killer of conservative activist Charlie Kirk to President Donald Trump&#8217;s MAGA movement.</p>
<p>&#8220;Last Wednesday, we made the decision to suspend production on the show to avoid further inflaming a tense situation at an emotional moment for our country. It is a decision we made because we felt some of the comments were ill-timed and thus insensitive,&#8221; Disney said in a statement Monday. &#8220;We have spent the last days having thoughtful conversations with Jimmy, and after those conversations, we reached the decision to return the show on Tuesday.&#8221;</p>
<p>The late night host will address the matter during his show set to be taped on Tuesday, according to a person familiar with the matter, who spoke on the condition of anonymity to discuss internal matters.</p>
<p>Following days of discussions, Disney CEO Bob Iger and Dana Walden, co-chair of Disney Entertainment, made the decision to return the show to air, the person said. The two executives informed Kimmel on Monday, the person added.</p>
<p>Local station owners learned of the show&#8217;s return on Monday when Disney made the public announcement, according to two people familiar with the matter.</p>
<p>Jimmy Kimmel at the Disney Advertising Upfront on Tuesday, May 13, 2025.</p>
<p>Michael Le Brecht | Disney General Entertainment Content | Getty Images</p>
<h2 class="ArticleBody-subtitle">Broadcast pushback</h2>
<p>&#8220;Jimmy Kimmel Live!&#8221; was suspended after <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-4">Nexstar Media Group<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span>, which owns more than 200 broadcast TV stations across the U.S., announced its stations affiliated with ABC would preempt Kimmel&#8217;s show. <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-6">Sinclair<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span>, another large broadcast TV station owner, similarly threatened to preempt the program.</p>
<p>Sinclair said in a release last week that it would not lift the suspension on &#8220;Jimmy Kimmel Live!&#8221; until it had formal discussions with ABC &#8220;regarding the network&#8217;s commitment to professionalism and accountability.&#8221;</p>
<p>As of Monday evening, a Sinclair representative said the company still planned to preempt the broadcast.</p>
<p>&#8220;Beginning Tuesday night, Sinclair will be preempting Jimmy Kimmel Live! across our ABC affiliate stations and replacing it with news programming,&#8221; according to a statement from Sinclair. &#8220;Discussions with ABC are ongoing as we evaluate the show&#8217;s potential return.&#8221;</p>
<p>Sinclair owns and operates nearly 40 ABC-affiliate stations across the U.S.,  including one in Washington, D.C., according to its website.</p>
<p>A Nexstar representative didn&#8217;t comment on the matter.</p>
<p>Kimmel said during his monologue last Monday that the &#8220;MAGA gang&#8221; was &#8220;desperately trying to characterize this kid who murdered Charlie Kirk as anything other than one of them and doing everything they can to score political points from it.&#8221;</p>
<p>&#8220;In between the finger-pointing there was grieving. On Friday the White House flew the flags at half-staff, which got some criticism, but on a human level you can see how hard the president is taking this,&#8221; he continued, teeing up a clip of Trump on the White House lawn in which the president fields a question on Kirk but swiftly pivots to talking about construction.</p>
<p>Immediately following ABC&#8217;s suspension of the show, everyone from entertainers to politicians weighed in on whether Kimmel should return to air, and whether the incident should affect station owners&#8217; broadcast licenses.</p>
<p>Federal Communications Commission Chair Brendan Carr had suggested ABC&#8217;s broadcast license was at risk in light of Kimmel&#8217;s comments, telling CNBC last week, &#8220;we&#8217;re not done yet&#8221; with changes to the media landscape.</p>
<p>Trump suggested the federal government might revoke broadcast station licenses for the networks that are &#8220;against&#8221; him.</p>
<p>The FCC didn&#8217;t immediately respond to a request for comment Monday.</p>
<p>Networks like ABC are part of a system that requires them to obtain over-the-air spectrum licenses from the federal government in order to broadcast across local stations. Since the networks are free to air over public spectrum — meaning anyone with an antenna can watch them — they must by law operate in &#8220;the public interest.&#8221;</p>
<p>Both Nexstar and Sinclair are currently looking to do deals that would require regulatory approval.</p>
<p>Nexstar recently announced a proposed $6.2 billion deal to merge with fellow broadcast station owner <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-12">Tegna<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span>, a deal that would upend longstanding regulations for the industry on how many stations a parent company can own.</p>
<p>And Sinclair said in August it&#8217;s exploring merger options for its broadcast business, though it has yet to reach an agreement.</p>
<h2 class="ArticleBody-subtitle">Political pressure</h2>
<p>Kimmel&#8217;s suspension drew comparisons to <span class="QuoteInBody-quoteNameContainer" data-test="QuoteInBody" id="RegularArticle-QuoteInBody-14">CBS&#8217;s<span class="QuoteInBody-inlineButton"><span class="AddToWatchlistButton-watchlistContainer" id="-WatchlistDropdown" data-analytics-id="-WatchlistDropdown"><span class="AddToWatchlistButton-addWatchListFromTag"/></span></span></span> cancellation of &#8220;The Late Show With Stephen Colbert&#8221; in July and raised questions about the protection of free speech in a Trump-era broadcast environment.</p>
<p>Trump&#8217;s scrutiny of media companies has intensified during his second term marked by high-profile defamation lawsuits, the defunding of public broadcasters and regulatory interference from the FCC. He&#8217;s particularly singled out ABC and NBC for what he called &#8220;unfair coverage of Republicans and/or Conservatives.&#8221;</p>
<p>Current and former late show hosts rallied behind Kimmel after his suspension and said the president&#8217;s influence amounted to censorship. Former Disney CEO Michael Eisner blasted the FCC&#8217;s &#8220;intimidation&#8221; of ABC.</p>
<p>A letter organized by the American Civil Liberties Union, signed by more than 400 people including Hollywood stars and artists, backed Kimmel, saying his suspension marked a &#8220;dark moment for freedom of speech in our nation.&#8221;</p>
<p>Meanwhile, Republican Sen. Ted Cruz of Texas criticized the FCC&#8217;s Carr for his comments related to the suspension of Kimmel.</p>
<p>And on Monday, New York City mayoral candidate Zohran Mamdani withdrew from an upcoming town hall on an ABC affiliate in protest of the network&#8217;s suspension of Kimmel.</p>
<p>Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. Versant would become the new parent company of CNBC upon Comcast&#8217;s planned spinoff of Versant.</p>
<p>The post <a rel="nofollow" href="https://www.ourstoryinsight.com/jimmy-kimmel-live-will-return-to-abc-on-tuesday/">&#8216;Jimmy Kimmel Live&#8217; will return to ABC on Tuesday</a> appeared first on <a rel="nofollow" href="https://www.ourstoryinsight.com">Our Story Insight</a>.</p>
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		<title>Industries Brace for Trump Tariffs Taking Effect on Tuesday</title>
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		<pubDate>Mon, 03 Mar 2025 20:37:41 +0000</pubDate>
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					<description><![CDATA[<p>When President Trump announced last week that an additional 10 percent tariff on Chinese goods would take effect on Tuesday, Logan Vanghele immediately called the logistics company that was handling a $120,000 shipment of aquarium products for his small business. The cargo was on a ship en route to Boston from China. His message was [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://www.ourstoryinsight.com/industries-brace-for-trump-tariffs-taking-effect-on-tuesday/">Industries Brace for Trump Tariffs Taking Effect on Tuesday</a> appeared first on <a rel="nofollow" href="https://www.ourstoryinsight.com">Our Story Insight</a>.</p>
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<p class="css-at9mc1 evys1bk0">When President Trump announced last week that an additional 10 percent tariff on Chinese goods would take effect on Tuesday, Logan Vanghele immediately called the logistics company that was handling a $120,000 shipment of aquarium products for his small business.</p>
<p class="css-at9mc1 evys1bk0">The cargo was on a ship en route to Boston from China. His message was clear: “Get this thing off the boat, please.”</p>
<p class="css-at9mc1 evys1bk0">Company executives and foreign officials are scrambling to avert the consequences of another tight deadline from Mr. Trump, who has threatened to put stiff tariffs on goods coming in from China, Canada and Mexico starting just after midnight Tuesday.</p>
<p class="css-at9mc1 evys1bk0">And at the White House on Monday, Mr. Trump said that there was no chance for a last-minute deal to avert them.</p>
<p class="css-at9mc1 evys1bk0">The president describes this as an effort to pressure those countries to stop the flow of deadly drugs and migrants to the United States. But Mr. Trump’s game of brinkmanship with America’s three largest trading partners is creating intense uncertainty for business owners.</p>
<p class="css-at9mc1 evys1bk0">That includes Mr. Vanghele, 28, who runs a small company that sells lighting and equipment for aquariums, all of which is made in China. He had no idea that the shipment — one of his biggest so far — could face such fees when it left Yantian Port in southeastern China in January, just days before Mr. Trump’s inauguration. In a frantic effort to avoid paying roughly $25,000 in tariffs, Mr. Vanghele pleaded with the logistics firm last week to unload his container at a port in Norfolk, Va., where it stopped on Friday, instead of traveling on to Boston.</p>
<p class="css-at9mc1 evys1bk0">While it is possible that Mr. Trump’s new tariffs will include an exemption for goods that are already on the water, there is no guarantee.</p>
<p class="css-at9mc1 evys1bk0">“Even if I’ve got to pay an absurdly high amount for it to get trucked over, it’s not going to come close to what the tariffs are,” Mr. Vanghele said. “I’m basically in Hail Mary mode.”</p>
<p class="css-at9mc1 evys1bk0">The tariffs — which would add a 25 percent fee on all Mexican and Canadian exports coming across those borders and an additional 10 percent for Chinese goods — could still be pushed off.</p>
<p class="css-at9mc1 evys1bk0">Mr. Trump had threatened to impose them on the three countries beginning Feb. 4 but decided to pause the levies on Canada and Mexico for one month after the countries promised measures like Mexico’s sending more troops to the border and Canada’s appointing a “fentanyl czar.”</p>
<p class="css-at9mc1 evys1bk0">Mr. Trump did move forward with imposing a 10 percent tariff on all products from China, which triggered retaliation from that country. He is now threatening another 10 percent on all Chinese imports, which would come on top of the 10 to 25 percent tariffs he imposed on many Chinese products in his first term.</p>
<p class="css-at9mc1 evys1bk0">Howard Lutnick, the commerce secretary, said in an interview on CNN on Monday that the Mexicans and Canadians had “done a nice job on the border” but that fentanyl deaths had not fallen by enough.</p>
<p class="css-at9mc1 evys1bk0">The president has “to decide how he wants to play it,” Mr. Lutnick said. “He’s going to decide this afternoon and tomorrow we’re going to put out those tariffs.”</p>
<p class="css-at9mc1 evys1bk0">Canada and Mexico are both deeply dependent on exports to the United States, and Mr. Trump’s threats have whipped their governments into action. Delegations of officials have made trips to Washington in recent weeks, including to meet with Mr. Lutnick.</p>
<p class="css-at9mc1 evys1bk0">In contrast, Chinese officials have not rushed to Washington with new concessions. People familiar with the discussions say that Beijing is still probing what Mr. Trump wants more broadly from the relationship.</p>
<p class="css-at9mc1 evys1bk0">President Claudia Sheinbaum of Mexico said in a news conference Monday that meetings with U.S. counterparts had gone “very well” and that her government will now wait for Mr. Trump’s decision. Ms. Sheinbaum displayed a graphic with data from U.S. Customs and Border Protection showing a 49.9 percent drop in fentanyl seizures on the border from October, when she took office, to January.</p>
<p class="css-at9mc1 evys1bk0">“We have a plan, A, B, C,” she said. “We have communicated, we have made agreements and coordination, but it depends on the president of the U.S. Whatever the decision is, we will also make our decisions.”</p>
<p class="css-at9mc1 evys1bk0">The prospect of new tariffs — in addition to a variety of other proposed levies on steel, aluminum, copper, timber and other products — have elicited anxiety and frustration from businesses selling everything from automobiles to breast pumps, who say tariffs will raise their costs as they move goods across borders.</p>
<p class="css-at9mc1 evys1bk0">Canada, Mexico and China account for more than 40 percent of U.S. imports. The tariffs that Mr. Trump threatened would dwarf any of the trade measures he has previously taken, raising the average U.S. tariff rates “to levels not seen since the 1940s,” said Chad Bown, a senior fellow at the Peterson Institute for International Economics.</p>
<p class="css-at9mc1 evys1bk0">For Canada and Mexico, most trade with the United States has faced zero tariff rates since the 1980s, he said, with free trade agreements for automobiles even dating back to the 1960s.</p>
<p class="css-at9mc1 evys1bk0">“Increasing tariffs from zero to 25 percent overnight is likely to be much more disruptive to those now highly integrated North American supply chains than anything President Trump did in his first term,” Mr. Bown said.</p>
<p class="css-at9mc1 evys1bk0">Of all the industries that depend on North American trade, automotive manufacturing could see the biggest impact. Canada and Mexico account for nearly half of U.S. car imports and exports, and an even greater share of the trade in motor vehicle bodies and parts.</p>
<p class="css-at9mc1 evys1bk0">Automakers have argued that parts and vehicles that are exempt under the current free trade treaty should continue to cross borders duty free.</p>
<p class="css-at9mc1 evys1bk0">“Our American automakers, who invested billions in the U.S. to meet these requirements, should not have their competitiveness undermined by tariffs that will raise the cost of building vehicles in the United States and stymie investment in the American work force,” said Matt Blunt, the president of the American Automotive Policy Council, which represents General Motors, Ford Motor and Stellantis.</p>
<p class="css-at9mc1 evys1bk0">Automakers have petitioned the White House arguing for such an exemption, but people familiar with the deliberations say the president has not seemed amenable to the idea.</p>
<p class="css-at9mc1 evys1bk0">Even if tariffs are ultimately not imposed, their threat makes it difficult for automakers to plan, analysts say. It typically takes four years or more to design a new car and outfit a factory to produce it.</p>
<p class="css-at9mc1 evys1bk0">“Automotive lead times are generally longer than political lead times,” said Brian Irwin, a managing director at the consulting firm Alvarez &#038; Marsal who advises clients in the auto industry.</p>
<p class="css-at9mc1 evys1bk0">Companies cannot quickly relocate production to the United States and will have to pass the tariffs on to customers, adding thousands of dollars to car prices. “You don’t have to be an expert in autos to see how detrimental this would be,” said John Helveston, an assistant professor at George Washington University who teaches engineering management.</p>
<p class="css-at9mc1 evys1bk0">There may be only one or two suppliers for certain precision components, he said, and none producing in the United States. “It’s not practical to just buy from an American supplier because there isn’t one,” Mr. Helveston said.</p>
<p class="css-at9mc1 evys1bk0">U.S. companies that source energy from around North America had a reprieve last month when Mr. Trump lowered the planned tariff on energy imported from Canada to 10 percent, from 25 percent. But the levy will be disruptive nevertheless, particularly for companies that transform oil into fuels like gasoline and diesel. That’s because U.S. refineries were built to run on a mix of the darker, heavier oil found in Canada — and the lighter crude produced domestically.</p>
<p class="css-at9mc1 evys1bk0">Refineries in the Midwest are particularly dependent on Canadian oil and, if the tariff takes effect, will have to choose between paying more for oil and cutting production. Analysts generally expect Canadian oil producers and U.S. refiners will share the additional cost burden. Prices at the pump also could rise modestly.</p>
<p class="css-at9mc1 evys1bk0">Oil and gas companies are also beginning to feel the effects of the 25 percent tariff on imported steel that Mr. Trump announced last month, even though it will not go into effect until March 12. Prices for products like the steel pipe that companies use to line their wells are already climbing in anticipation of the tariff.</p>
<p class="css-798hid etfikam0">Minho Kim and Paulina Villegas contributed reporting.</p>
<p>The post <a rel="nofollow" href="https://www.ourstoryinsight.com/industries-brace-for-trump-tariffs-taking-effect-on-tuesday/">Industries Brace for Trump Tariffs Taking Effect on Tuesday</a> appeared first on <a rel="nofollow" href="https://www.ourstoryinsight.com">Our Story Insight</a>.</p>
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