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Category: Economy
May 6, 2025
Economy
World

Trump Tariffs Lead to Factory Closures, Protests in China.

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❓What Happened: Protests erupted in China after factory closures linked to President Donald J. Trump’s 145 percent tariff on Chinese goods.

👥 Who’s Involved: Chinese factory and construction workers, President Trump, U.S. Treasury Secretary Scott Bessent, and China’s Commerce Ministry.

📍 Where & When: Protests took place in Suining, Sichuan province, Hunan province, and Inner Mongolia, with workers complaining they have not been paid since the beginning of the year.

💬 Key Quote: President Trump has stated he will “lower” the tariff on China “at some point,” but for now the trade duties will remain in effect.

⚠️ Impact: The tariff has put approximately 16 million Chinese jobs at risk, leading to significant unrest among Chinese workers.

IN FULL:

Protests have erupted across China following the shutdown of several factories, a consequence of President Donald J. Trump’s 145 percent tariff on Chinese goods. The unrest has seen workers in various regions of China, including Suining in Sichuan province, Hunan province, and Inner Mongolia, take to the streets demanding unpaid wages and benefits.

The turmoil began when factory workers at an electronics plant in Suining protested over not receiving their pay. Similarly, hundreds of employees at Guangxin Sports Goods in Hunan province went on strike after the factory closed without settling wages or Social Security benefits. In Inner Mongolia, construction workers resorted to threatening suicide over unpaid dues, highlighting the severe financial strain faced by many.

The Chinese manufacturing sector is feeling the pinch as the government grapples with President Trump’s tariffs, which are intended to rebalance global trade in favor of American workers who have been undercut by China’s comparatively low pay and underhanded tactics such as currency manipulation. The manufacturing purchasing managers’ index reveals that new export orders in China have plummeted to their lowest since the COVID-19 pandemic, with manufacturing job numbers similarly declining to levels not seen since February 2024.

China’s National Bureau of Statistics attributes the downturn to “sharp changes in the external environment.” An estimated 16 million jobs across various Chinese industries are now at risk due to the tariffs.

In response, China has made moves to alleviate the economic strain by exempting approximately $40 billion worth of U.S. imports from its own 125 percent retaliatory tariffs. Despite ongoing behind-the-scenes discussions, formal trade negotiations between the U.S. and China have yet to materialize. President Trump, speaking on NBC’s Meet the Press, has expressed a willingness to “lower” the tariffs eventually, noting that China is eager to continue business.

U.S. Treasury Secretary Scott Bessent has remarked that the trade war is “not sustainable on the Chinese side,” suggesting that the Chinese economy is already experiencing significant slowdowns. Meanwhile, companies are investing substantially in making products in America, so they will not be subject to import duties.

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May 6, 2025
Economy

Teamsters Back Trump Tariffs on Movies, Slam Hollywood’s Outsourcing Practices.

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❓What Happened: President Donald J. Trump announced a plan to impose tariffs on foreign-produced films, which the Teamsters Union is backing.

👥 Who’s Involved: President Trump, the International Brotherhood of Teamsters, Sean O’Brien, Lindsay Dougherty.

📍 Where & When: The announcement was made recently, with the Teamsters responding shortly after.

💬 Key Quote: “We thank President Trump for boldly supporting good union jobs when others have turned their heads,” said Teamsters General President Sean O’Brien and Motion Picture Division Leader Lindsay Dougherty in a statement.

⚠️ Impact: The move aims to curb outsourcing in the film industry and has received positive feedback from a historically Democrat-aligned union.

IN FULL:

The International Brotherhood of Teamsters has strongly supported President Donald J. Trump‘s initiative to impose tariffs on films produced overseas, describing it as a “strong step” toward addressing the outsourcing of American jobs in the film industry. This endorsement came swiftly after Trump announced a proposed 100 percent tariff on foreign-produced movies entering the U.S.

In a joint statement, Teamsters General President Sean O’Brien and Motion Picture Division Leader Lindsay Dougherty commended the initiative, highlighting the detrimental impact of outsourcing on American workers. “For years, Hollywood studios have hollowed out the industry by following Corporate America’s crooked playbook of outsourcing good union jobs. Studios chase cheap production costs overseas while gutting the American workforce that built the film and TV industry,” O’Brien and Dougherty wrote. “These gigantic corporations line their pockets by recklessly cutting corners, abandoning American crews, and exploiting tax loopholes abroad. While these companies get rich fleeing to other countries and gaming the system, our members have gotten screwed over.”

“We thank President Trump for boldly supporting good union jobs when others have turned their heads. This is a strong step toward finally reining in the studios’ un-American addiction to outsourcing our members’ work,” O’Brien and Dougherty added.

During the 2024 presidential race, Trump received the backing of an overwhelming number of Teamster households. The union itself declined to endorse either candidate, although this was widely interpreted as a snub to the Democratic ticket rather than the Republican ticket.

Earlier this year, Trump appointed veteran actors Sylvester Stallone, Mel Gibson, and Jon Voight to spearhead efforts to revitalize Hollywood, aiming to make it “bigger, better, and stronger than ever before.”

The International Brotherhood of Teamsters, founded in 1903, represents 1.3 million workers across the U.S., Canada, and Puerto Rico, and has long been vocal about the need to protect domestic jobs in the face of increasing globalization and outsourcing.

Image by Matt Michalski.

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May 6, 2025
Economy

Johnson Warns GOP Risks Missing Memorial Day Deadline for Trump’s Spending Bill.

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❓What Happened: House Speaker Mike Johnson (R-LA) indicated that the deadline he has set to pass President Donald J. Trump’s domestic spending bill through the reconciliation process might be missed.

👥 Who’s Involved: House Speaker Mike Johnson, President Trump, and lawmakers on Capitol Hill.

📍 Where & When: U.S. House of Representatives, with comments made late on Monday, May 5.

💬 Key Quote: Johnson stated the bill would be passed “shortly thereafter” if not by May 31.

⚠️ Impact: The budget reconciliation bill includes provisions making permanent the 2017 Trump tax cuts, new reductions in taxation, increased defense spending, and enhanced border security.

IN FULL:

House Speaker Mike Johnson (R-LA) has announced a potential delay in the passage of President Donald J. Trump‘s domestic spending bill, initially slated for Memorial Day. Following a recent meeting with President Trump, Johnson acknowledged that the timeline for chamber committees to finalize their sections of the bill has been extended, with final passage potentially slipping into June.

The proposed budget includes significant measures such as tax reductions, a boost in defense expenditures, and heightened border security efforts. These elements reflect key priorities often emphasized by Republican leadership and align with President Trump’s policy objectives.

Johnson communicated that if the comprehensive bill is not approved by the initially set deadline of May 31, it will be finalized “shortly thereafter.” Currently, the primary hurdle facing the legislation is a breakdown in negotiations over the state and local tax deduction (SALT deduction). This has pitted Republican lawmakers in blue states against their colleagues. Notably, SALT was capped in the 2017 tax cut bill, which effectively increased taxes on residents in states with high state income taxes like New York. While House leadership has tried to put a positive spin on the SALT negotiations, it is widely known on Capitol Hill that the talks have made almost no significant progress, with some lawmakers suggesting they’ve broken down entirely.

If House negotiators are unable to reach a deal on the SALT caps and the reconciliation bill fails to move, Americans could face a significant tax increase as key provisions in Trump’s 2017 Tax Cuts and Jobs Act (TCJA) law sunset. This is adding an extra sense of urgency on Capitol Hill—especially among Republicans who realize they are unlikely to receive any help from Congressional Democrats.

The National Pulse reported last week that President Trump appears to be shifting away from foreign policy and refocusing his White House on the reconciliation bill and other domestic priorities. At a rally in Michigan last Tuesday, Trump turned up the pressure on Congress to adopt the reconciliation measure, promising: “In the coming weeks and months, we will pass the largest tax cuts in American History—and that will include No Tax on Tips, NO Tax on Social Security, and No Tax on Overtime. It’s called the one big beautiful bill.”

Image by Mike Johnson.

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May 6, 2025
Economy
News

Trump Tariffs Boost U.S. Manufacturers.

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❓What Happened: U.S. tariffs have led to increased demand for American-made goods as companies bring production back to the U.S. This boost has been felt especially among smaller manufacturers.

👥 Who’s Involved: President Donald J. Trump, U.S. manufacturers like Jergens Inc., Grand River Rubber & Plastics, SafeSource Direct, AccuRounds, Whirlpool, and Excel Dryer.

📍 Where & When: Various U.S. locations, including Ohio, Illinois, Massachusetts, and Michigan, over recent weeks.

💬 Key Quote: “We are swamped. We are running 24 hours a day, seven days a week in both Chicago and Cleveland,” said Jack Schron, president of Jergens Inc.

⚠️ Impact: Smaller U.S. manufacturers are experiencing increased demand and potential growth, as tariffs level the playing field against foreign competitors.

IN FULL:

President Donald J. Trump‘s administration continues to push for a resurgence in American manufacturing, with recent tariffs boosting demand for American-made goods. This shift particularly benefits smaller domestic manufacturers as more companies decide to onshore production.

“We are swamped. We are running 24 hours a day, seven days a week in both Chicago and Cleveland,” says Jack Schron, president of Jergens Inc. The company is known for producing heavy-duty power and industrial tools, including industrial screwdrivers, clamps, and hoists. Schron added that his facilities are “going like gangbusters” to meet demand.

In Ohio, Donny Chaplin, president of Grand River Rubber & Plastics, has observed a notable increase in inquiries and orders. Some former clients, who had previously switched to Chinese suppliers, are returning to Grand River for rubber gaskets. New business from oil filter manufacturers seeking to move away from China could potentially bring in $5 million annually, driving the need for expansion and additional hires.

The tariffs have become a vital lifeline for companies that emerged during the pandemic to produce personal protective equipment. Alan Rust, chief growth officer for SafeSource Direct, noted a significant rise in inquiries as new tariffs on Chinese rubber gloves have doubled prices, prompting businesses to seek alternative sources.

Massachusetts-based AccuRounds is experiencing a similar uptick, with employees working overtime to fulfill rising orders for steel components. CEO Michael Tamasi revealed a 20 percent increase in first-quarter sales compared to the previous year.

Whirlpool, a Michigan-based appliance manufacturer, is optimistic about the recent tariffs on imported appliances. CEO Marc Bitzer believes these measures will help close the price gap created by Asian competitors who benefit from cheaper components and steel.

Excel Dryer in Massachusetts is also reaping the benefits of the tariffs. Chief Operating Officer William Gagnon credits the import taxes with improving production location decisions and enhancing competitiveness against cheaper foreign copies.

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May 5, 2025
Economy
News

Trump Says No Easing on China Tariff Talks.

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❓What Happened: President Donald J. Trump announced he will not further reduce tariffs on China to encourage negotiations.

👥 Who’s Involved: President Trump, NBC’s Kristen Welker, and the Chinese Communist Party (CCP).

📍 Where & When: Mar-a-Lago estate, during an NBC Meet The Press interview recorded Friday.

💬 Key Quote: “I’m not looking to have China make hundreds of billions of dollars and build more ships and more army tanks and more airplanes.” – President Trump.

⚠️ Impact: Potential economic strain on China and long-term U.S. economic strategy with expected new investments.

IN FULL:

President Donald J. Trump has stated that he will maintain tariffs on Chinese imports, resisting any reduction to bring Beijing to the negotiating table. In an interview with NBC’s Meet The Press recorded at his Mar-a-Lago estate, Trump emphasized that China’s economy is suffering significantly. “They’re getting absolutely destroyed. Their factories are closing. Their unemployment is going through the roof,” Trump remarked to host Kristen Welker.

Trump made it clear that he does not intend to ease the tariffs, which are designed to protect American producers from cheap Chinese imports, merely to initiate talks. When asked directly by Welker if he would drop the tariffs for negotiation purposes, Trump responded with a definitive “No.”

The Chinese Communist Party (CCP) has indicated an openness to discussions on tariff reductions, but their own tariffs are far less effective than President Trump’s, as they export far more to the U.S. than vice versa. The Trump administration takes the view that this status quo results from various informal restrictions on American exports, and underhanded tactics such as state subsidies and currency manipulation artificially increasing Chinese goods’ competitiveness in price.

Trump suggested that while future reductions may occur, they are contingent on ensuring the U.S. can conduct business effectively with China. “At some point, I’m going to lower them because otherwise you could never do business with them,” he stated.

The America First leader stressed the benefits of tariffs to industries such as the automotive sector. He highlighted significant investments by companies like Apple, Toyota, and General Motors, which are committing billions to U.S. operations.

Beijing has already created a list of American products, including pharmaceuticals and microchips, exempt from its retaliatory tariffs. Similarly, the Trump administration has temporarily exempted certain Chinese products, such as smartphones, laptops, and computer parts, from tariffs to give consumers and the domestic industry time to adjust.

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May 2, 2025
William Upton
Economy
Politics

Trump White House Unveils Lean 2026 Budget Proposal.

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❓What Happened: The Office of Management and Budget (OMB) presented President Donald J. Trump’s discretionary budget proposal for fiscal year 2026 to Congress. Notably, the Trump White House touts the plan as being a “skinny budget,” with significant cuts being proposed for a bevy of agencies and federal programs.

👥 Who’s Involved: President Trump, U.S. Congress, and Russ Vought, Director of the Office of Management and Budget.

📍 Where & When: The budget plan was presented to Congress in Washington, D.C., on Friday, May 2.

💬 Key Quote: OMB Director Russ Vought stated, “At this critical moment, we need a historic Budget—one that ends the funding of our decline, puts Americans first, and delivers unprecedented support to our military and homeland security.”

⚠️ Impact: The budget suggests a major restructuring of federal funding, with significant cuts to non-defense programs and increases in defense and homeland security spending, aiming to redirect resources to support national security and infrastructure.

IN FULL:

The Office of Management and Budget (OMB) sent President Donald J. Trump’s discretionary budget proposal for the 2026 fiscal year to Congress on Friday, with the push for steep spending cuts rankling some Republican lawmakers at the Capitol. The proposal calls for a $163 billion reduction in non-defense discretionary spending compared to the previous year, with a focus on increasing funding for the military and border security.

President Trump’s OMB Director, Russ Vought, pitched the budget plan to lawmakers and the American public, stating: “At this critical moment, we need a historic Budget—one that ends the funding of our decline, puts Americans first, and delivers unprecedented support to our military and homeland security.” Notably, the proposals seek to codify many of the spending cuts enacted by the American First leader through the Department of Government Efficiency (DOGE), making it more difficult for Democrats to restore the programs if they were to win the White House in 2028.

While many House Republicans have cheered the DOGE cuts and signaled their support for the budget plan, some influential Republican lawmakers chairing key committees appear less than enthused with the proposed spending cuts. “Look, we’re supportive of this administration and what it’s trying to do,” Representative Tom Cole (R-OK), who chairs the powerful House Appropriations Committee, said on Friday. He added: “But with all due respect to anybody, I think the members have a better understanding of what can pass and what can’t than the Executive Branch does.”

Historically, budgets proposed by the President and sent to Congress undergo significant changes on Capitol Hill. The plan has and does, however, serve as a guide for lawmakers as to what the White House sees as policy priorities. Additionally, many of the non-defense discretionary spending cuts come through eliminating grants and other federal programs that have largely funded the Democratic Party’s diversity, equity, and inclusion (DEI) agenda.

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May 2, 2025
Economy
World

Canadian Prime Minister Carney Set for White House Meeting with Trump.

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❓What Happened: Canadian Prime Minister Mark Carney announced he will travel to the White House in Washington, D.C. next Tuesday for a meeting with U.S. President Donald Trump amidst ongoing trade tensions. The former central banker for both the Bank of Canada and the Bank of England stressed that he intends to fight for the best possible trade deal for Canada.

👥 Who’s Involved: Canadian Prime Minister Mark Carney and U.S. President Donald Trump.

📍 Where & When: Meeting at the White House, Washington, D.C., on Tuesday, May 6.

💬 Key Quote: “We are meeting as heads of our government. I am not pretending those discussions will be easy,” Carney said, adding: “Our old relationship, based on steadily increasing integration, is over. The questions now are how our nations will cooperate in the future and where we in Canada will move on.”

⚠️ Impact: The meeting signifies a pivotal diplomatic engagement amidst altered Canada-U.S. relations, with potential implications for trade between the two nations and Canadian sovereignty.

IN FULL:

Canadian Prime Minister Mark Carney is set to visit the White House on Tuesday to meet with U.S. President Donald J. Trump. This meeting comes amidst heightened tensions over trade and national sovereignty. Carney’s Liberal Party narrowly won enough parliamentary seats to form a minority government, as no other party or coalition can control a majority. Despite the close contest, Carney has attempted to frame his victory as a rebuke of President Trump’s tariff policies and push to absorb America’s northern neighbor.

“We are meeting as heads of our government. I am not pretending those discussions will be easy,” Carney stated at a press conference on Friday. He added: “Our old relationship, based on steadily increasing integration, is over. The questions now are how our nations will cooperate in the future and where we in Canada will move on.”

The Liberal Party leader and former central banker, who replaced former Prime Minister Justin Trudeau following his resignation from office in March, said that while he has already had constructive conversations with President Trump, “My government will fight to get the best deal for Canada.”

Currently, the United States tariffs Canadian imports at 25 percent, except for energy and potash exports, which are only subject to a 10 percent rate. The U.S. tariffs and President Trump’s repeated assertion that he would like to see Canada become America’s 51st state have become serious points of contention for Carney.

Image via Bank of England.

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May 2, 2025
William Upton
Economy

Jobs Report Beats Expectations for Second Straight Month, Indicating Trump Economy Remains Strong.

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❓What Happened: The U.S. added 177,000 jobs this April, beating employment forecasts for a second consecutive month. Notably, April saw significant job growth across several key economic sectors, with construction employment increasing for the third straight month. The transportation and warehousing, leisure and hospitality, and private education and health services industries also saw significant employment growth.

👥 Who’s Involved: President Donald J. Trump, the U.S. Department of Labor, White House Press Secretary Karoline Leavitt, various economists, and business figures.

📍 Where & When: The jobs numbers were released by the U.S. Department of Labor on Friday, May 2, and cover data from the month of April 2025.

💬 Key Quote: “Gasoline just broke $1.98 a Gallon, lowest in years, groceries (and eggs!) down, energy down, mortgage rates down, employment strong, and much more good news, as Billions of Dollars pour in from Tariffs. Just like I said, and we’re only in a TRANSITION STAGE, just getting started!!!” President Trump wrote in a post on Truth Social.

⚠️ Impact: Labor force participation increased, real average hourly wages rose nearly four percent over the past year, and the federal government reduced jobs for the third month in a row. Additionally, the unemployment rate—currently near historic lows—remained unchanged at 4.2 percent.

IN FULL:

The U.S. Department of Labor announced that 177,000 new jobs were created in April, surpassing market expectations once again. This marks the second month in a row the report has shown stronger-than-expected job growth, with the Trump White House touting the data as evidence that the America First leader’s economic policies aimed at revitalizing the American labor market are working.

“Gasoline just broke $1.98 a Gallon, lowest in years, groceries (and eggs!) down, energy down, mortgage rates down, employment strong, and much more good news, as Billions of Dollars pour in from Tariffs. Just like I said, and we’re only in a TRANSITION STAGE, just getting started!!!” President Trump wrote in a post on his Truth Social platform Friday morning. He added, “Consumers have been waiting for years to see pricing come down. NO INFLATION, THE FED SHOULD LOWER ITS RATE!!!”

April’s jobs numbers contradict the narrative pushed by the corporate media and Wall Street, which contend that President Trump’s imposition of tariffs on foreign imports will lead to layoffs, a declining economy, and even a potential recession. Notably, last month’s hirings surpassed the 12-month average of 152,000 jobs.

According to the data, several industries expected to see immediate negative impacts from the tariffs actually added jobs in April. Private education and health services saw over 70,000 new jobs created, while transportation and warehousing saw nearly 30,000. Additionally, the leisure and hospitality industry added over 24,000 jobs, and professional and business services added 17,000.

“This is the second month in a row where the jobs report has beat expectations. Wages are continuing to rise and labor force participation is increasing. This is exactly what we want to see. More Americans working for higher wages. More winning is on the way,” White House Press Secretary Karoline Leavitt said after the report was released.

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May 2, 2025
Economy

Trump Tariffs Force Germany’s Mercedes-Benz to Shift More Production to America.

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❓What Happened: Mercedes-Benz announced on Thursday, May 1, that it will shift additional production to the United States, with the aim of localizing the assembly of a new “core segment” vehicle at its facility in Tuscaloosa, Alabama.

👥 Who’s Involved: Mercedes-Benz, President Donald J. Trump, BMW, Honda, Hyundai, Kia, Nissan, Stellantis, Toyota.

📍 Where & When: The announcement was made on May 1, 2025, with plans to have production of the “core segment” vehicle entirely moved to Alabama by 2027.

💬 Key Quote: In a statement announcing the move, Mercedes-Benz North America CEO Jason Hoff said: “We are getting even closer to the U.S. customer by localizing a core segment model in Tuscaloosa, strengthening our ties to the North American market where a range of Mercedes-Benz vehicles including the GLE and GLS models have their roots.”

⚠️ Impact: The move by Mercedes-Benz is the latest announcement by a major global corporation that it intends to increase its production base in the United States following President Trump’s imposition of a global 10 percent tariff on all foreign imports and additional trade duties on foreign steel and automobiles last month.

IN FULL:

Mercedes-Benz is set to expand its manufacturing operations in the United States, as the company plans to produce an additional vehicle at its Tuscaloosa, Alabama, facility. This move comes amid the Trump administration’s emphasis on bolstering American manufacturing, urging automakers to enhance their domestic production efforts to avoid tariffs imposed on foreign auto and steel imports earlier this year.

“We are getting even closer to the U.S. customer by localizing a core segment model in Tuscaloosa, strengthening our ties to the North American market where a range of Mercedes-Benz vehicles including the GLE and GLS models have their roots,” Mercedes-Benz North America CEO Jason Hoff said in a statement announcing the move on Thursday.

The decision aligns with other shifts in the automotive industry toward onshoring production. BMW is contemplating increasing its workforce in South Carolina with additional shifts. Honda intends to transfer production of its Civic model from Japan to U.S. facilities. Additionally, Hyundai has announced a significant $20 billion investment aimed at strengthening its American production capabilities. This includes a new $5.8 billion steel plant in Louisiana, aiding in Hyundai’s goal of localizing production in the United States.

Kia, in collaboration with Hyundai, plans to manufacture hybrid vehicles in Georgia. Nissan is evaluating the possibility of moving production from Mexico to the U.S. Additionally, Stellantis is set to restart its Belvidere, Illinois plant to produce a midsize pickup truck, while Toyota intends to increase hybrid vehicle production at its West Virginia facility.

The National Pulse reported earlier on Thursday that satellite radio provider SiriusXM told investors on its quarterly earnings call that it does not anticipate tariffs to significantly impact the company’s revenue. Notably, SiriusXM is heavily reliant on new car sales to build its subscriber base, holding installation agreements with most U.S. automakers.

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May 1, 2025
Economy

SiriusXM CFO Dismisses Tariff Concerns on Earnings Call: ‘We Sleep Well at Night.’

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❓What Happened: SiriusXM reported a decrease in first-quarter revenue and subscribers. Despite this, CFO Tom Barry indicated that the company is not significantly impacted by tariff-related pressures on car sales. Notably, in 2024, an estimated 92.7 percent of SiriusXM’s revenue came from subscriptions to its satellite radio service, a large portion of which is tied to installation deals with much of the American automobile industry.

👥 Who’s Involved: SiriusXM, CFO Tom Barry, CEO Jennifer Wirtz, and the Trump White House.

📍 Where & When: The quarterly revenue numbers and comments regarding tariff impacts were revealed on May 1 during SiriusXM’s earnings call.

💬 Key Quote: “Big picture, we sleep well at night,” Barry said, noting the company had not seen a significant negative impact on auto sales stemming from President Donald J. Trump’s imposition of tariffs on foreign imports earlier this year.

⚠️ Impact: SiriusXM’s unique business model, heavily reliant on new car sales and installment contracts with automobile manufacturers, makes the company especially vulnerable to disruptions impacting the auto industry. The comments from company executives indicating that they see tariffs having only a minimal impact on revenue suggest negative economic forecasts pushed by Wall Street may be overblown.

IN FULL:

Executives with SiriusXM, the satellite radio provider, stated during a quarterly earnings call on Thursday that they do not believe the foreign import tariffs imposed by President Donald J. Trump will significantly impact the company’s revenue. The comments are notable as SiriusXM is heavily reliant on revenue derived from subscribers to its satellite radio service, which is pre-installed in many American automobiles.

During the Thursday morning earnings call, SiriusXM CFO Tom Barry stated that the company does not anticipate “that tariff-related pressure on new car sales will have a material impact on our subscriber or financial performance this year.” While Barry cautioned that “like every business, we’ll continue to closely monitor ongoing developments and broader consumer health,” he emphasized to investors, “Big picture, we sleep well at night.”

While SiriusXM did state that its revenue decreased in the first quarter of 2025 by four percent, to slightly over $2 billion, Barry and the company’s CEO, Jennifer Wirtz, stressed that lower-than-expected advertising profits drove the decline. The satellite radio provider’s business model is heavily reliant on new car sales and installment contracts with automakers to grow its subscriber base. In 2024, an estimated 92.7 percent of SiriusXM’s revenue came from subscriptions to its satellite radio service, a large portion of which is tied to the installation deals with much of the American automobile industry.

The confidence expressed by the SiriusXM executives that the Trump administration tariffs will have minimal impact on their future earnings contrasts with the narrative being pushed by economic analysis on Wall Street, which continues to forecast a high likelihood of a recession later this year. Notably, the outlook presented by Barry mirrors consumer data that suggests the U.S. economy remains steady despite a 0.3 percent contraction in GDP in the first quarter announced on Wednesday.

Image by Thomson200.

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