Trade uncertainty weighing on chip companies, says ‘Chip War’ author
The semiconductor industry is particularly vulnerable to tariffs due to how globally integrated its supply chains are, according to Chris Miller, Tufts Fletcher Schooler professor and ‘Chip War’ author.
Even if chips are assembled in the U.S., many of the components used are not manufactured in the U.S., Miller noted.
“The complexity of the supply chains makes devising a tariff policy around carve outs very, very difficult, which is why the industry is hoping there won’t be any changes at all — because they’ve been structured around the assumption that you can move goods back and forth across borders without this type of tariff uncertainty,” Miller told CNBC’s “Squawk Box” on Thursday.
— Hakyung Kim
White House weighs tariff exemptions for some agricultural goods, report says
U.S. Secretary of Agriculture Brooke Rollins speaks to members of the press outside of the White House in Washington, D.C. on Feb. 14, 2025.
Bryan Dozier | AFP | Getty Images
The White House is considering exemptions for some agricultural goods from the tariffs on Mexico and Canada, according to Bloomberg News.
“As far as specific exemptions and carveouts for the agriculture industry, perhaps for potash and fertilizer, et cetera — to be determined,” Agriculture Secretary Brooke Rollins said on Wednesday, according to Bloomberg. Canada is a major source of fertilizer supplies for the U.S. agriculture industry.
A White House spokesperson also said on Wednesday that Trump was “open” to more tariff exemptions after delaying auto industry levies for one month.
— Jesse Pound
Stellantis said it will build ‘more American cars’
A Jeep Rubicon vehicle at a Jeep dealership in Richmond, California, US, on Monday, March 3, 2025.
Bloomberg | Bloomberg | Getty Images
Automaker Stellantis thanked President Donald Trump for the one-month tariff exemption on automakers and vowed it will grow its business in the U.S.
“We share the President’s objective to build more American cars and create lasting American jobs. We look forward to working with him and his team,” the company said in a statement.
Shares of the Jeep and Dodge-maker were down 1.6% in premarket trading Thursday, after gaining 9.24% on Wednesday.
— Michelle Fox
Surveys show worries surging among business leaders over tariffs and trade
Tariffs are weighing heavily on the minds of business executives, with concerns expressed in multiple surveys this week over rising costs and the inability to pass higher prices on to consumers.
“The incoming tariffs are causing our products to increase in price. Sweeping price increases are incoming from suppliers. Most are noting increases in labor costs,” a purchase manager in the machinery sector said in the ISM manufacturing survey for February. “Inflationary pressures are a concern. Our company is working diligently to see how the new tariffs will affect our business.”
That response was representative across reports that showed continued expansion across the economy but increasing worries that President Donald Trump’s trade policy.
Worries over the new duties were not confined to the manufacturing sector. In the ISM services survey, business leaders also indicated sentiment that price increases are coming, with potentially negative impact on profitability.
“Tariffs are going to have a ripple down effect that could severely harm our business,” a technology manager said.
“Business seemed to pop after the election, but uncertainty after the election seemed to take the ‘wind out of our sales,’ with uncertainty again increasing, added a representative from the professional, scientific and technical services field.
In the Federal Reserve’s periodic Beige Book look at economic conditions, there were more than 50 mentions of either tariffs or trade policy concerns.
“Many contacts reported difficulty setting prices and noted ambiguity around costs, largely as a result of uncertain international trade policy,” the Atlanta Fed reported. “Most firms said they expected to pass through the bulk of any additional costs to customers.”
Chris Williamson, chief business economist at S&P Global Market Intelligence, noted that the firm’s monthly survey showed services activity expanding but at a much slower pace, with business executives concerned over tariffs.
“Adding to the gloomier picture in February was a sharp rise in costs, which companies were often unable to pass on to customers due to weak demand,” he said. “While this reduced pricing power is good news for inflation, it’s potentially bad news for profitability.”
—Jeff Cox
