Introduction to Pfizer’s Investment Plans

Pfizer CEO Albert Bourla on Tuesday said uncertainty around President Donald Trump’s planned pharmaceutical tariffs is deterring the company from further investing in U.S. manufacturing and research and development. Bourla’s remarks on the company’s first-quarter earnings call came in response to a question about what Pfizer wants to see from tariff negotiations that would push the company to increase investments in the U.S.

Impact of Tariffs on Investment Decisions

Bourla stated that the uncertainty surrounding tariffs is a significant factor in the company’s investment decisions. "If I know that there will not be tariffs … then there are tremendous investments that can happen in this country, both in R&D and manufacturing," Bourla said on the call, adding that the company is also hoping for "certainty." He noted that in periods of uncertainty, the company is controlling its costs and being frugal with investments to prepare for potential risks.

Tax Environment and Investment Incentives

Bourla noted that the tax environment, which had previously pushed manufacturing abroad, has "significantly changed now" with the establishment of a global minimum tax of around 15%. However, he said that this shift hasn’t necessarily made the U.S. more attractive, saying "it’s not as good" to invest here without additional incentives or clarity around tariffs. He added that a further decrease in taxes would be a strong incentive for manufacturing in the U.S.

Guidance and Tariff-Related Costs

Unlike other companies grappling with evolving trade policy, Pfizer did not revise its full-year outlook on Tuesday. However, the company noted in its earnings release that the guidance "does not currently include any potential impact related to future tariffs and trade policy changes, which we are unable to predict at this time." On the earnings call, Pfizer executives said the guidance does reflect $150 million in costs from Trump’s existing tariffs.

Conclusion

In conclusion, Pfizer’s investment plans in the U.S. are being deterred by the uncertainty surrounding President Trump’s planned pharmaceutical tariffs. The company is seeking clarity and certainty around tariffs to make informed investment decisions. A decrease in taxes and additional incentives could make the U.S. a more attractive location for investment.

FAQs

Q: What is deterring Pfizer from investing in U.S. manufacturing and research and development?

A: The uncertainty surrounding President Donald Trump’s planned pharmaceutical tariffs is deterring Pfizer from further investing in U.S. manufacturing and research and development.

Q: What is Pfizer seeking from tariff negotiations?

A: Pfizer is seeking clarity and certainty around tariffs to make informed investment decisions.

Q: How has the tax environment changed?

A: The tax environment has significantly changed with the establishment of a global minimum tax of around 15%.

Q: What would make the U.S. a more attractive location for investment?

A: A decrease in taxes and additional incentives would make the U.S. a more attractive location for investment.

Q: How much in costs from Trump’s existing tariffs is reflected in Pfizer’s guidance?

A: $150 million in costs from Trump’s existing tariffs is reflected in Pfizer’s guidance.

Introduction to General Motors’ Earnings Report

GMC trucks are displayed at Hanlees Hilltop GMC in Richmond, California, on Jan. 28, 2025.
Justin Sullivan | Getty Images
DETROIT — General Motors is set to report its first-quarter earnings before the bell Tuesday, but investors are more likely to focus on the automaker’s 2025 guidance than on quarterly results amid President Donald Trump’s ongoing auto tariffs.

Impact of Auto Tariffs on the Automotive Industry

The tariffs, including 25% levies on imported vehicles, has created growing uncertainty for the automotive industry. The instability has caused Wall Street analysts to downgrade many automotive stocks, including GM.
The Detroit automaker has not publicly announced any significant changes to its manufacturing plans, but it has been making some adjustments to its North American production due to the tariffs as well as other factors.

Expected Earnings and Revenue

Even with uncertainty in the long term, several Wall Street analysts expect GM to beat first-quarter estimates as consumers rushed to purchase vehicles ahead of potential price increases due to the tariffs.
Here is what Wall Street is expecting:

• Earnings per share: $2.74 adjusted
• Revenue: $43.05 billion
  Those results would mark a 0.1% increase in revenue compared with a year earlier and a 4.6% uptick in adjusted earnings per share. GM’s first quarter of 2024 included $43.01 billion in revenue, net income attributable to stockholders of $2.98 billion, and adjusted earnings before interest and taxes of $3.87 billion.

Guidance and Mitigating Tariff Costs

GM has regularly raised its annual guidance when reporting its first-quarter earnings in recent years, but it’s unclear how much the automaker can manage increased costs due to the tariffs.
GM CEO Mary Barra in February said the company believed it could mitigate up to 50% of then-potential tariffs on imports from Canada and Mexico, but the company has yet to provide further information since sector tariffs were implemented.
The current 25% auto tariffs include Canada and Mexico, as well as other countries GM imports vehicles from, specifically South Korea.

Previous Guidance and Stock Performance

The company’s 2025 guidance, which it issued in January, includes net income attributable to stockholders of $11.2 billion to $12.5 billion, or $11 to $12 in earnings per share; adjusted earnings before interest and taxes of $13.7 billion to $15.7 billion, or $11 to $12 adjusted EPS; and adjusted automotive free cash flow between $11 billion and $13 billion.
Deutsche Bank, UBS, Barclays and Bernstein are among the downgrades to GM’s stock since the 25% auto tariffs took effect April 3.
GM’s stock remains rated overweight with a price target of $53.91 a share, according to average estimates compiled by FactSet.

Conclusion

General Motors’ first-quarter earnings report is expected to be overshadowed by the company’s 2025 guidance, as investors seek to understand how the automaker plans to navigate the uncertainty caused by President Donald Trump’s ongoing auto tariffs. While Wall Street analysts expect GM to beat first-quarter estimates, the company’s ability to mitigate the costs of the tariffs will be a key factor in its future performance.

FAQs

Q: What is the expected earnings per share for General Motors’ first quarter?
A: $2.74 adjusted
Q: What is the expected revenue for General Motors’ first quarter?
A: $43.05 billion
Q: How have the auto tariffs affected General Motors’ stock?
A: The tariffs have led to downgrades from several Wall Street analysts, including Deutsche Bank, UBS, Barclays, and Bernstein.
Q: What is General Motors’ 2025 guidance?
A: The company’s 2025 guidance includes net income attributable to stockholders of $11.2 billion to $12.5 billion, or $11 to $12 in earnings per share; adjusted earnings before interest and taxes of $13.7 billion to $15.7 billion, or $11 to $12 adjusted EPS; and adjusted automotive free cash flow between $11 billion and $13 billion.

Introduction to Temu’s New Import Charges

Chinese e-tailer Temu has started adding "import charges" of about 145% in response to President Donald Trump’s tariffs. The fees, which began cropping up over the weekend after price hikes went into effect on Friday, cost more than the individual products consumers are buying and can more than double the price of a typical order.

Examples of Import Charges

For example, a summer dress sold on Temu for $18.47 will cost $44.68 after $26.21 in import charges are added to the bill, a 142% surcharge. A child’s bathing suit priced at $12.44 will cost shoppers $31.12 when the $18.68 import charge is taken into account, a staggering 150% fee. A handheld vacuum cleaner listed at $16.93 now costs $40.11 when factoring in an import charge of $21.68, which is a roughly 137% markup.

Explanation of Import Charges

"Items imported into the U.S. may be subject to import charges. These charges cover all customs-related processes and costs, including import fees paid to customs authorities on your behalf," Temu explains on its website. "The amount listed may not represent the actual amount paid to customs authorities." Representatives from Temu didn’t immediately respond to a request for comment.

Comparison with Rival Retailer Shein

Rival discount retailer Shein has also hiked prices on its site, but it doesn’t appear to be implementing import charges. The company added a banner at checkout that states, "Tariffs are included in the price you pay. You’ll never have to pay extra at delivery." The moves come after Temu and Shein warned earlier this month that they would raise their prices after Trump slapped a 145% tariff on many imports from China and vowed to end the de minimis exemption on May 2.

Impact on Consumers

The import fees erode the value proposition that made Temu popular with consumers in the first place. Temu, which is owned by Chinese e-commerce giant PDD Holdings, has skyrocketed in popularity in the U.S. since its launch in 2022 by blanketing the internet with ads proclaiming users can "Shop like a billionaire." Though shipping times could be long, consumers flocked to the site because the rock bottom prices on clothing, electronics, and home goods made the extra wait worth it.

Consumer Reaction

Temu shoppers have flooded a Reddit forum with posts decrying the tariff-induced import charges in the days since the company raised prices. In one post titled "R.I.P. Temu, it was nice while it lasted," a user wrote that the price of items "went flying up" on Friday. "From shopping like a billionaire to shopping like a peasant in one day," a user wrote in a separate Reddit post on Saturday.

Changes in Business Strategy

Recently, Temu has been promoting products that ship to U.S. consumers locally over those that ship directly from China. That trend has only ramped up as the company hikes prices and adds extra fees. For example, a scan of Temu’s "lightning deals" page on Monday showed more than 75% of the products offered had a "local" tag on them. When consumers click on the items, a bright green banner with the words "no import charges" is highlighted at the top.

Conclusion

In conclusion, Temu’s new import charges have significantly increased the prices of their products, making them less competitive in the market. The company’s decision to add these charges is a response to the tariffs imposed by President Trump, but it may ultimately harm their business as consumers seek alternative options.

FAQs

Q: What are the import charges added by Temu?
A: The import charges added by Temu are approximately 145% of the original price of the product.
Q: Why did Temu add import charges?
A: Temu added import charges in response to the tariffs imposed by President Trump on many imports from China.
Q: How do the import charges affect the prices of Temu’s products?
A: The import charges significantly increase the prices of Temu’s products, making them more than double the original price in some cases.
Q: Are all products on Temu subject to import charges?
A: No, products that are shipped from local warehouses in the U.S. are not subject to import charges.
Q: How can consumers avoid import charges on Temu?
A: Consumers can avoid import charges by purchasing products that are shipped from local warehouses in the U.S., which are marked with a "local" tag on the website.