Sponsored by Temas Resources

Trump Weighs Auto Industry Tariff Relief

The White House has signaled that President Donald Trump is open to providing the automotive sector with relief from specific tariffs, following weeks of industry pressure.

Multiple administration officials confirmed to CNBC on Wednesday that exemptions are under consideration that would shield car manufacturers from portions of Trump’s broader trade measures.

The potential relief would specifically target auto parts imported from China currently subject to anti-fentanyl tariffs, as well as from levies on steel and aluminum, according to sources familiar with the discussions.

You can read more on the matter here.

What’s going on?

• Bessent Backpedals on China Tariff Cuts as Trump Strategy Falters (theDeepDive)

• Donald Trump urges Russia’s Vladimir Putin to stop after a deadly attack on Kyiv (Globe)

• China Plans to Expand Shanghai Gold Exchange Internationally (theDeepDive)

• China tells US to ‘cancel all unilateral tariffs’ if it wants talks (FT)

• OpenAI Would Consider Chrome Purchase If Google Forced To Sell (theDeepDive)

• Home Sales in March Fell 5.9%, Biggest Drop Since 2022 (WSJ)

• Putin Signals Possible Freeze of Ukraine Conflict, FT reports (theDeepDive)

• City of Vancouver proposes major changes to housing policy in Canada’s poorest neighbourhood (Globe)

• BMO Ends Partnership with Cathie Wood’s ARK Investment, Shutters Funds (theDeepDive)

What’s the latest?

• Trade War: China denied being in any active tariff negotiations with the U.S., contradicting President Trump’s claim that talks were going “fine” and tariffs would drop “substantially” from the current 145%. Chinese officials called such claims “groundless” and reiterated that any dialogue must be based on mutual respect. China has responded with 125% tariffs on U.S. goods, rare earth export restrictions, and WTO cases. While Trump gave other countries a 90-day pause, China remains the only major economy excluded.

• UPS: UPS has agreed to acquire Andlauer Healthcare Group Inc. in a $2.2 billion deal, paying $55.00 per share in cash — a 31% premium to AHG’s last closing price of $41.96. AHG CEO Michael Andlauer, who controls 53.2% of shares and 82% of voting power, supports the transaction. AHG specializes in healthcare logistics, and Andlauer will lead UPS Canada Healthcare and AHG post-acquisition.

• Pepsi: PepsiCo lowered its 2025 profit outlook, now expecting flat earnings per share versus earlier mid-single-digit growth projections, due to U.S. tariffs and shifting consumer behavior. First-quarter sales dropped 1.8% to $17.9B, with organic sales up 1.2% and core EPS at $1.48, just below the $1.49 analyst estimate. In North America, Frito-Lay volumes slipped 1% and beverages fell 3%. About 6% of U.S. sales are tied to SNAP, which is under regulatory scrutiny, alongside new government moves to ban petroleum-based food dyes and sugary products from subsidy programs.

• Alphabet:  Alphabet Inc. is set to report earnings amid an 18% YTD stock decline, regulatory pressure, and AI competition, but is expected to post 6.2% net earnings growth and 12% revenue growth this quarter. Full-year forecasts project 10% earnings growth and 12% revenue growth, though consensus estimates have been trimmed by 1.6% (earnings) and 1.1% (revenue) over the past month. Despite antitrust losses and tariff-related uncertainty, Alphabet trades at 16.4x forward earnings, below its long-term average and the lowest among the Magnificent Seven. Capital expenditure plans remain high at $75B for 2025, raising investor questions over whether it’s a value play or a value trap.

• Scotiabank: Economists at Scotiabank are raising concerns about both the Conservative and Liberal fiscal plans in Canada’s upcoming election, citing overly optimistic assumptions. The Conservatives project $100.6B in deficits by FY 2028-29, but Scotiabank says removing dynamic scoring pushes that closer to $156B, while the Liberals forecast $225B in deficits over the same period. Both parties assume $20B in retaliatory tariff revenue and tens of billions in efficiency savings, which experts call unrealistic. RBC strategists warn that net bond issuance is set to reach a record high, regardless of which party wins.

Ontario’s $2.2B Spa Scandal

The stock market and stuff

• First Quantum Q1 2025 Net Cash Flow Drops By $440M As Net Loss Hits $23M (theDeepDive)

• Adobe adds AI models from OpenAI, Google to its Firefly app (Reuters)

• PepsiCo Says Tariffs Will Ding Earnings (WSJ)

• Newmont Sees Q1 2025 Net Income Surge Tenfold, Thanks To Soaring Gold Prices (theDeepDive)

In the juniors

• Sierra Metals Finally Agrees To Takeover By Alpayana At $1.15 Per Share (theDeepDive)

• WeightWatchers Prepares For Bankruptcy Protection As It Loses Ground to Ozempic (theDeepDive)

• Calibre Mining Sees Equinox Gold Lightly Sweeten Acquisition Terms Over Lack Of Support (theDeepDive)

FULL DISCLOSURE: Temas Resources is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Temas Resources on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.