Today’s Big Story

Trade War Continues

Trump slaps 25% tariffs on auto imports, says countries will be ‘pleasantly surprised’ by reciprocal duties

Another day, another tariff announcement. President Donald Trump on Wednesday announced 25% tariffs on autos and auto parts that are not produced in the U.S. It’s essentially a gamble that consumers will accept higher prices on cars in the near term for the promise of regaining lost manufacturing jobs in the future.

Just how much will it raise prices? Well, if you follow the journey of just one auto part, you discover that carmakers have enjoyed free trade with Canada since 1965 and Mexico since 1994, so they had set up production and distribution chains across North America without worrying about borders. Hundreds of billions of dollars worth of raw materials, parts and vehicles ping-pong in and out of all three countries every year—sometimes multiple times—before finished cars wind up in dealers’ showrooms.

Now, analysts, researchers, manufacturers and trade groups said tariffs levied at every border crossing could raise the price of each new car by thousands of dollars and scramble long-standing supply chains. Retaliatory tariffs by Mexico and Canada may ratchet up prices even further.

Trump said the tariffs will go into effect on April 2—the same day the administration says it will unveil reciprocal tariffs on a slew of imports. He added that the tariffs would be “permanent”, saying there is nothing that would prompt the removal of the import taxes. “But if you build your car in the United States, there is no tariff,” Trump told reporters. Supply chains that took nearly 60 years to construct are likely to take signification time, and costs, to rework.

The U.S. International Trade Commission, in early 2024, studied what would happen if the government imposed sweeping auto tariffs. A 25% tariff on all U.S. auto imports would reduce them by about 74% and increase average auto prices by 5%, the paper found. The average new car price in the U.S. is $48,401 … so that’d raise the price by more than $2,420.

And while this news swirls, the market is keen to find out how broad those other tariffs will be come April 2, which the White House has been calling “Liberation Day”. The president has sent mixed signals on flexibility, but said Wednesday that "people are going to be pleasantly surprised" at how "fair" and "nice" the duties are to other countries. Trump said he would hold a news conference on the reciprocal tariffs next week.

MLB Opening Day

The 2025 season is here, and there’s no shortage of storylines

Major League Baseball is ready to kick into full swing as the season officially starts tonight with 28 of the 30 MLB teams taking the field for Opening Day. After a chaotic offseason, ESPN says one thing is clear heading into the new season: “Everyone is chasing the Dodgers”, but is your team a legit threat to knock off the Dodgers or you are just hoping your team can contend?

The high-spending and uber-talented Los Angeles franchise will be a focal point for the sport this year, for better or worse. Superstar Juan Soto will patrol right field for the Mets after New York owner Steve Cohen lured him away from the crosstown rival Yankees with a record-breaking contract. While the National League features multiple elite teams, the American League feels more wide open than ever.

What are the surprise teams to watch? It depends on who you ask … Yahoo Sports says “arguably no roster in baseball has undergone more seismic transformations over the past decade than San Diego’s under president of baseball operations A.J. Preller.” But NBC Sports says “the A’s are going to push for a wild card spot, and it’s a shame that the great fans in Oakland won’t be there to cheer them on.” But don’t count out the Cincinnati Reds, with Terry Francona returning to the dugout. And The Ringer says Atlanta is due to rebound from their “year from hell” in 2024.

Is Pizza Inflation-Proof?

Why the pies seem resilient against rising prices

Pizza is one of my all-time favorite foods. It never lets me down and always satisfies. And something I never realized until now is that it’s also an incredible deal. While consumers are still feeling the pressure on their bank accounts from the rising costs of everyday foods and essentials, keen observers have pointed out that the price of delivery pizza is relatively the same as three decades ago.

Over the holidays, people watching Home Alone started sharing on social media that Kevin McCallister's pizza order costs about the same as it might today—about $12 for a plain cheese. CNN investigated and found that while most fast food chains have significantly raised prices over the years, those reliable pizza chains have been able to maintain their prices, especially if you’re adept at using coupons or their apps.

Of course, since inflation ramped up in 2021, both Pizza Hut and Domino’s have raised prices slightly. But their prices today are vastly lower than what they charged in the ‘90s, adjusted for inflation. “The American consumer is not ready to pony up for pizza,” a longtime pizza industry executive who worked at Pizza Hut and Papa John’s told The Hustle. “They consider pizza to be the cheapest option to feed the family. And I don’t know how that ... is ever going to change.”

Stephen Curry Teams Up With Michelle Obama

The former first lady and NBA star are releasing a “healthier” sports drink

Perhaps best known for his on-court dominance, NBA player Steph Curry is hoping some of that success translates into the crowded court of sports drinks. On Wednesday, Curry announced the launch of Plezi Hydration, through Michelle Obama’s public benefit company, Plezi Nutrition. The drink adds to Curry’s growing portfolio of off-court ventures as the 37-year-old nears the final years of his playing career.

The sports drink market is a big market—the roughly $25 billion industry, which is filled with competitors ranging from Leo Messi and Logan Paul to Coca-Cola’s BodyArmor and old school players like Gatorade that are all vying for customers’ seemingly endless thirst for these drinks. But Curry said the beverage’s focus on health and wellness makes it different. The drink touts no added sugar or artificial sweeteners, less sodium than leading rivals and a full daily dose of vitamin C.

"With input from registered dietitians, PLEZi Hydration is packed with more potassium, less sugar, and lower sodium—all while tasting great," Obama told People. "We’re proud to offer a better option for anyone looking to stay active and hydrated without compromise.” The drinks come in three flavors: Tropical Punch, Orange Mango Twist and Lemon Lime. All iterations have 12g of sugar in each bottle (which is less than half of the 28g found in “leading” sports drinks), 120mg of sodium (versus 230mg in other brands) and a whopping 500mg of potassium (others have 70mg), along with the full recommended daily dose of vitamin C.

Disrupting a Trillion Dollar Market

BOXABL Officially Reserved NASDAQ Stock Ticker Symbol BXBL

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