Economy

Trump's First Term
Trump's China Tariffs Could Hit Japan Hard

A trade war between the US and China would hit Japan's economy hard, warns the country's chief economist Tomoko Hayashi.

Among other things, she highlights how Japanese exports fell sharply and saw their worst years last time Donald Trump was president.

- Having learned from previous experiences, some Japanese companies have already taken countermeasures, such as adjusting supply chains and storing inventory, she tells Bloomberg

Trump's tariffs
Trump repeats tariff threat: "China will pay too"

Trump continued late on Thursday to threaten 25 percent trade tariffs on Canada and Mexico, Reuters reports.

- We may or may not do it, he told reporters, adding that a decision would likely come later that evening.

Previously, Trump has said that the tariffs will be implemented starting Saturday if the countries do not stop the influx of migrants and fentanyl into the United States.

The president also said that he is considering new tariffs on China, which he accuses of sending fentanyl to the country and causing "hundreds of thousands of deaths."

- So China will also have to pay tariffs for that and we are working on it, Trump said, according to the news agency.

The indexes on Wall Street turned sharply down on Trump's statements, but recovered most of it before the close.

Tesla's Future
Analysis: Be careful with owning Tesla shares

Tesla's report was clearly weaker than market expectations, and it remains to be seen how the electric car manufacturer will be able to position itself when competition intensifies.

DN's Jonas Fröberg points out that CEO Elon Musk's increasingly political appearance poses a risk and that the Western world is starting to distance itself from him.

“This makes Elon Musk even more dependent on the world’s largest and fastest-growing electric car market: China,” he writes.

Jonathan Weber at Seeking Alpha writes that the fact that Tesla’s operating profit fell by 20 percent indicates problems with its core business. At the same time, the valuation is high, and the return on free cash flow is minimal.

“I recommend that you avoid Tesla’s stock until operational improvements occur,” he writes.

US climate policy
Trump’s policies risk hitting 40 percent of Tesla’s profits

Elon Musk’s Tesla could lose a large revenue stream if Donald Trump makes it a reality to scrap various climate regulations and incentives, reports Bloomberg. Today, Tesla is selling emissions rights to a number of competitors who have not come as far in the electric car race and therefore need the emissions rights to meet their climate requirements.

According to a calculation made by JP Morgan Chase, up to around 40 percent of Tesla's profit comes from emissions rights, depending on how far Trump goes in his political plans.

Yesterday, Tesla reported profit growth of 2.8 percent, which was below analysts' expectations of 8.5 percent.

The development of AI
Several countries want to question Deep Seek

Authorities in several countries are questioning how the Chinese AI challenger Deep Seek handles personal data, writes TT.

Among other things, South Korean authorities state that they are demanding answers about how the chatbot uses personal data, writes Reuters. The issue has also been raised in France, Italy and Ireland.