Shares of automakers after President-elect Donald Trump’s victory.

“Advanced Clean Cars II” regulations of 2022 call for 35% of 2026 model year vehicles, which will begin to be introduced next year, to be zero-emission vehicles. Battery-electric, fuel cell and, to an extent, plug-in hybrid electric vehicles qualify as zero emission.

Before the election, automotive officials said regardless of who won the White House, many automakers will push for the mandates to be postponed.

The California Air Resources Board reports 12 states and Washington, D.C., have adopted the rules; however, roughly half of them did so starting with the 2027 model year. They are part of CARB’s Advanced Clean Cars regulations that require 100% of new vehicle sales in the state of California to be zero-emission models by 2035.

EVs made up 10% or more of local market shares in just 11 states and the District of Columbia to begin this year, according to the Alliance for Automotive Innovation, a trade association and lobby group that represents most major automakers operating in the U.S.

Auto executives and industry experts also expect Trump could roll back or freeze the Corporate Average Fuel Economy, or CAFE, standards for model years 2027-2031.

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]]> https://thenewshub.in/2024/11/06/what-trumps-election-to-the-white-house-could-mean-for-evs/feed/ 0 https://thenewshub.in/2024/11/06/donald-trumps-victory-future-of-fashion-in-us/ https://thenewshub.in/2024/11/06/donald-trumps-victory-future-of-fashion-in-us/?noamp=mobile#respond Wed, 06 Nov 2024 12:30:00 +0000 https://thenewshub.in/2024/11/06/donald-trumps-victory-future-of-fashion-in-us/

Donald Trump has won the US Presidential election, and this win will definitely influence the country’s trade and business sectors, including the fashion industry. Trup is known for his ‘America First; stance, and his policies are likely to emphasise more on domestic production, restructuring tariffs, taxes, and trade agreements. These changes will affect the fashion brands that depend on international supply chains but will also change consumer pricing, availability, and industry practices. Let’s take a better view of what might lie ahead for the United States fashion industry by considering the trade policies of Donald Trump and also have a speculative look at what things might have looked like under a Kamala Harris administration.

Trump at a campaign stop 2024 US Election

Trump’s ‘America First’ policies and their impact on fashion
The Donald Trump administration has always taken enormous interest in transforming trade policies to support the American product. During his first gig as the President of America, his campaign of ‘America First’ aimed to strengthen domestic producers and minimise the country’s dependence on overseas products at large, as is the case with most fashion brands. Tariffs, a centrepiece of his trade policy, directly impacted the cost and sourcing of raw materials and manufactured goods for fashion brands across the US. These tariffs often covered key inputs like textiles, clothing, and accessories, which are typically sourced from Asia, especially China.

LIVE | US President-Elect Trump FULL Victory Speech | ‘We Made History’ | Florida LIVE

The intention of the policy was to bring back more fashion manufacturing jobs into the US. Reality, however, proved otherwise. Although tariffs are expected to boost domestic manufacturing, most of the brands could not find a big manufacturing facility for their ready-to-wear apparel due to infrastructure and high-cost issues associated with running an apparel manufacturing facility in the US. Most the brands were consequently faced with an increased cost of production they either pass on to their consumers or absorb at personal cost.
That scaled back their pricing structures or compromised on the range and quality of materials adopted. Fast fashion brands were unable to sustain their appeal of low cost due to a rise in costs for importing. This meant both luxury and affordable brands succumbed financially, but some smaller brand went under due to lack of ability to meet higher production costs.

Donald Trump

The goal was to bring in more fashion manufacturing jobs in the US. But things turned out a tad too complicated for that reason alone. Even though it intended to make domestic production more attractive, high cost factors and the absence of such infrastructure in the country as far as large apparel manufacturers are concerned made a turnaround unattractive on behalf of most brands coming home without raising the overall costs. As a consequence, production became more costly for them, and most of these brands either passed this along to their customers or absorbed it themselves in the form of reduced profit margins.
This meant, therefore, that luxury brands of fashion and high-class retailers would have to trim down their price structures or reduce the scope and grade of material they used. Conversely, fast fashion brands suffered the pressure of losing their ‘value for money’ by rising import costs. Eventually, the new production costs presented both the luxury and economy brands with financial stress, to which some smaller brands ultimately closed down.

Donald Trump and Melania Trump

Tariffs and taxes on imports: A mixed bag
Under Trump, the United States placed tariffs on goods from several countries, targeting China in particular, which represents a large share of raw materials and finished goods used by American fashion brands. The tariffs were placed on billions of dollars’ worth of Chinese goods, which include various textiles, clothing, and accessories.
For some of these companies, the tariffs multiplied the price paid for raw materials, stripping off profits or forcing brands to raise prices to consumers. Large brands- Nike and Levi’s-diversified their manufacturing base across different countries. They easily arranged for shifting their production units to other geographic locations, such as Vietnam or Mexico. The smaller brands had it tougher. Many had to find other places to manufacture products, an expensive and time-consuming process involving renegotiating contracts, finding new suppliers, and adjusting to the new production environment.
Changes had the effect of making items on clothing and accessories costlier for consumers, especially on brands that had no other choice but to pass those extra costs down the line. This made it an incredibly difficult landscape for the US. fashion market in terms of brands and consumers trying to adapt to higher costs of fashion items.

ડોનાલ્ડ ટ્રમ્પ ફરી એક વખત યુએસ પ્રેસિડન્ટ બને તેવી શક્યતા છે.

Made in USA, a distant dream?
Infrastructure on textiles and apparel in manufacturing sectors has declined over time when such production was outsourced because it was cheaper elsewhere. However, with renewed vigour toward domestic manufacturing, this could not be adequately answered for a number of infrastructural, skilled workforce needs, and capacity reasons-especially given the sensitivity in apparel markets to prices-paying high prices for apparel as much as possible. Plus, the cost of garments and apparels produced within America would be significantly more costly compared to other nations as well, where the overhead cost of labor and making was relatively lower.
Brands that attempted to produce domestically often found it challenging to compete with the affordability of imported goods. For instance, denim production in the US can cost two to three times more than in countries like Bangladesh or China. As a result, only high-end or niche brands were able to adopt the ‘Made in the USA’ label without losing their competitive edge.

Donald Trump

How the fashion industry adapted
The fashion industry sought creative changes in order to adapt to the new landscape of trade. Many brands started looking to diversify their supply chains, reducing dependence on China and shifting production towards countries with favorable trade agreements such as Vietnam, Indonesia, and India. The tendency continues to grow as more and more brands seek ways to avoid tariffs and reduce production costs.
Some companies began a nearshoring strategy by bringing operations closer to the United States in places such as Mexico or through Central America. The nearshoring option allows brands to maintain supply lines that are shorter than from Asia; however, it means going up against different kinds of logistical hurdles and, often, slightly higher production costs from Asia. Besides this, many brands are investing in sustainable practices and using materials that appeal to their growing consumer base that finds value in environmental responsibility while using this shift as an opportunity to market their services as potentially more expensive.

Donald Trump

Advantages and disadvantages of Trump’s policies toward the fashion industry
Benefits
Boosting local brands: Trump’s policies focus on the production of more locally manufactured items, thus boosting those firms that already were using more of local products or could now shift their production.
Less vulnerability in supply chain: In the past, imposing tariffs on the products from China led the firms to diversify their supply chain so that in the future any such disturbance may not again create the same type of problem for them.
Drawbacks
Increased production cost: If Trump sticks to his old plan, then the prices of buying imported products will rise, and things may become unaffordable for the consumers.
Economic uncertainty: Under Trump’s rule, constant changes in trade policies created uncertainty, complicating long-term planning and budgeting for many companies.
Reduced market growth: Higher prices due to tariffs will limit consumer purchasing power, especially for fast fashion brands that rely on low-cost goods.

How Kamala Harris’ Presidency may have affected fashion commerce
Had Kamala Harris become the president instead of Donald Trump, the fashion trade could have seen a different terrain. Harris has frequently championed free trade and economic policies that focus on inclusivity and sustainability. Her administration might have taken a more cooperative approach to trade with nations like China and in the multilateral trade agreements. This would have meant much stability for the industry.
Harris’s approach to fashion trade likely would have emphasised sustainable practices, and her administration might have introduced incentives for brands that prioritise ethical labour practices and environmental responsibility. For example, instead of tariffs, Harris might have encouraged companies to shift toward sustainable fabrics and production methods through tax breaks or grants. This could have provided both economic and environmental benefits, appealing to a growing consumer base that values eco-conscious practices.

Furthermore, as a woman of colour and a daughter of immigrants, Harris may have fostered stronger relationships with Asian countries, including India, where a large portion of textile production occurs. This would have facilitated smoother trade relationships and helped maintain affordability for fashion imports.

]]> https://thenewshub.in/2024/11/06/donald-trumps-victory-future-of-fashion-in-us/feed/ 0 https://thenewshub.in/2024/11/03/why-flights-to-europe-are-the-cheapest-theyve-been-in-years/ https://thenewshub.in/2024/11/03/why-flights-to-europe-are-the-cheapest-theyve-been-in-years/?noamp=mobile#respond Sun, 03 Nov 2024 13:00:01 +0000 https://thenewshub.in/2024/11/03/why-flights-to-europe-are-the-cheapest-theyve-been-in-years/

A tourist takes a photo as the Acropolis’ Propylaea are seen in the background, in Athens, Greece, on June 28, 2024.

Elias Marcou | Reuters

Flights between the U.S. and Europe have not been this cheap in three years, when many countries were just lifting Covid-19 era rules.

Fares are low even for the traditionally slow late-fall and winter months outside of major holidays.

“It is brutal to fill seats during these times of year,” said Brett Snyder, who writes the Cranky Flier travel industry site.

According to flight-tracking company Hopper, “good deal” fares across the Atlantic to Europe are averaging $578 in November, down from $619 a year earlier.

It is the lowest deal fare for this month since 2021, when they were going for $479 and much of international travel was in a slump because of the pandemic, Hopper data shows.

In January, after the year-end holidays, 2025 fares are even lower: $558 compared to $578 for the same month in 2024, though higher than $488 in January 2022, according to Hopper.

U.S. domestic airfare, on the other hand, is more expensive compared with last year in every month from November through March.

Many airlines from financially troubled Spirit Airlines to profitable Southwest Airlines have cut flights or trimmed growth plans into next year, which has helped keep U.S. fares firm. Aircraft scarcity is also limiting airlines from adding many flights.

There are also some periods of weaker demand overall, executives at the largest U.S. carriers, Delta Air Lines, United Airlines and American Airlines have said, calling out the week before and after the U.S. presidential election on Tuesday.

shoulder-season demand to Europe as travelers look to escape scorching summer temperatures and crowds. As a result, they have also added flights outside of peak periods.

Airline capacity between the U.S. and Europe in the fourth quarter is marginally lower than last year, but it is higher than in 2019 and nearly double the amount in the same period of 2021, according to Cirium.

“I expect airfare [to Europe] to be low into next year,” said Hayley Berg, Hopper’s lead economist.

Now, on the heels of two big years for European travel, many customers are fresh off their big trips to popular destinations such as Spain and Italy, which means fewer people to fill seats in the offseason.

“It’s not as though there is so much low-hanging fruit and where airlines could print money hand-over-fist like last year,” said Scott Keyes, founder of travel app Going, which was previously known as Scott’s Cheap Flights.

Airlines traditionally discount flights in the offseason, but they are even cheaper this year.

“That’s the tell,” Keyes said. “When they’re having to go out and discount, they’re having to juice the demand.”

So that travelers do not get bored with European vacation mainstays when next year’s peak warm-weather travel season rolls around, airlines are trying new things. United Airlines has noted many customers have already taken trips to major European cities and the airline plans to expand its schedule next year to more off-the-beaten-path destinations such as Greenland and Mongolia.

“We’re also able to do just as well financially outside of our partner hubs,” United’s Chief Commercial Officer Andrew Nocella said on an earnings call last month. “So we look across the globe, we look for new destinations, we look for hot destinations and destinations, most importantly, we can make money in.”

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South Korea, Japan, and the United States have conducted a joint air drill involving a heavy bomber, Seoul’s military said, in response to North Korea’s latest long-range missile test.

The exercise took place on Sunday, three days after Pyongyang launched one of its most powerful and advanced solid-fuelled intercontinental ballistic missiles (ICBM), which experts say could reach targets in the mainland US.

The drill mobilised the US’ B-1B bomber, South Korea’s F-15K and KF-16 fighter jets, and Japan’s F-2 jets, Seoul’s military said.

“The exercise demonstrates the commitment of the ROK-US alliance to integrated extended deterrence in response to the advancing nuclear and missile threats from North Korea,” said South Korea’s Joint Chiefs of Staff in a press release.

During the aerial manoeuvre, South Korea and Japan’s jets escorted the US strategic bomber to a designated location south of the Korean peninsula, “demonstrating an overwhelming capability to swiftly and accurately strike simulated targets,” it added.

The B-1B Lancer is a supersonic heavy bomber known for its high-speed performance with a payload of 34,000 kilograms of munitions, including both conventional and precision-guided weapons.

It was the fourth time this year the bomber was deployed to the Korean peninsula, the military said, and the second time for a trilateral aerial exercise to counter Pyongyang’s military threats.

The North’s latest ICBM launch is said to have flown higher and further than any previous missile, according to North Korea as well as Seoul and Tokyo’s militaries, which tracked it in real-time.

The official Korean Central News Agency hailed it as “the world’s strongest strategic missile,” and leader Kim “expressed great satisfaction” at the successful launch.

North Korea “would never change its line of bolstering up its nuclear forces,” the agency said.

The launch came amid growing international scrutiny over Pyongyang’s purported deployment of thousands of troops to Russia to support Moscow’s war efforts in Ukraine, raising concerns North Korean soldiers in Russian uniforms could soon engage in combat.

]]> https://thenewshub.in/2024/11/03/japan-us-s-korea-conduct-joint-drills-after-n-koreas-icbm-launch/feed/ 0 https://thenewshub.in/2024/11/01/boeing-union-backs-sweetened-contract-offer-that-could-end-strike-sets-vote-for-monday/ https://thenewshub.in/2024/11/01/boeing-union-backs-sweetened-contract-offer-that-could-end-strike-sets-vote-for-monday/?noamp=mobile#respond Fri, 01 Nov 2024 18:41:54 +0000 https://thenewshub.in/2024/11/01/boeing-union-backs-sweetened-contract-offer-that-could-end-strike-sets-vote-for-monday/

Boeing workers from the International Association of Machinists and Aerospace Workers District 751 gather on a picket line near the entrance to a Boeing production facility on the day of a vote on a new contract proposal during an ongoing strike in Renton, Washington, U.S. October 23, 2024. 

David Ryder | Reuters

Boeing and its machinists’ union have agreed on a new negotiated offer to raise worker pay and potentially end a crippling strike that began seven weeks ago with a vote on the new proposal set for Monday.

The union urged workers to approve the contract. Getting workers back into factories is urgent for Boeing as it faces mounting losses.

“In every negotiation and strike, there is a point where we have extracted everything that we can in bargaining and by withholding our labor,” the International Association of Machinists and Aerospace Workers District 751 said Thursday. “We are at that point now and risk a regressive or lesser offer in the future.”

The new proposal includes 38% general wage increases over four years, up from a previous offer for 35%, bringing the compounding pay increases to close to 44%, the union said Thursday. It also gives workers the option of a $12,000 one-time ratification bonus or to choose a previous offer for a $7,000 ratification bonus and a $5,000 401(k) contribution.

The union said that asking its members to stay on strike longer “wouldn’t be right as we have achieved so much success.”

Boeing’s more than 32,000 machinists, mostly based in the Seattle area, walked off the job on Sept. 13 after turning down a tentative agreement. They rejected another proposal earlier this month, extending the strike.

Boeing said Thursday that at the end of the contract, machinist pay will average $119,309.

“It’s time we all come back together and focus on rebuilding the business and delivering the world’s best airplanes,” Boeing’s CEO Kelly Ortberg said in a note to staff on Friday. “There are a lot of people depending on us.”

He urged workers to vote “since the results of the vote will affect all of us.”

The Biden administration has gotten involved in negotiations during the strike, which has halted most aircraft production at Boeing, a top U.S. exporter. Acting Labor Secretary Julie Su met with the company and the union this week.

The Boeing strike took a bite out of U.S. employment numbers in October, according to Friday’s U.S. jobs report, the last before the Nov. 5 presidential election.

President Joe Biden congratulated the union and Boeing for the new contract proposal.

“Machinists at Boeing have sacrificed over the years and deserve a strong contract,” he said in a statement on Friday, shortly after the jobs report was released.

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Ortberg said on his first earnings call last week since taking the top job in August that the company has been “feverishly working to find a solution that works for the company and meets our employees’ needs.” Hours later, the workers rejected a negotiated proposal.

Boeing machinists have repeatedly pushed for higher compensation as the cost of living in the Seattle area — where technology giants like Microsoft and Amazon have ramped up staffing — has surged in recent years.

Under the new contract proposal, as in previous iterations, Boeing vowed to build whatever its next airplane will be in the Puget Sound area. One sore spot among workers is that Boeing moved 787 Dreamliner production to a non-union factory in South Carolina.

The strike has further pushed back Boeing leaders’ plans to stabilize the aerospace behemoth as it reels from the impact of production flaws and the fallout from safety issues, most recently a door plug that blew out midair from a Boeing 737 Max 9 at the start of the year.

Boeing lost more than $6 billion in the last quarter and warned it would continue to burn cash through 2025.

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