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Apple News Today

How tariffs could transform the auto industry

Tue, 08 Apr 2025

Description

Michigan’s auto industry is at the forefront of the economic turmoil brought on by the Trump administration’s tariffs. The Wall Street Journal’s Jeanne Whalen tells us about the impact on manufacturers and workers so far.  Flight attendants who work for the airline that’s overseeing most of the federal government’s deportation flights told ProPublica’s McKenzie Funk that they don’t feel like they can treat passengers humanely — or keep them safe. Johnson & Johnson played a much larger role in the opioid crisis in America than many people realize. In his new book, ‘No More Tears: The Dark Secrets of Johnson & Johnson’ — and in our latest episode of Apple News In Conversation — Gardiner Harris reports that the company’s products have led to the deaths and injuries of millions of people. Plus, Trump said the U.S. is in direct talks with Iran over Tehran’s nuclear program, major storms in parts of the Midwest and South killed at least 24 people across multiple states, Chief Justice John Roberts paused a court order to bring a mistakenly deported Maryland man back to the U.S., and how a social-media rumor led to serious stock-market whiplash yesterday. Today’s episode was hosted by Shumita Basu.

Audio
Transcription

Chapter 1: What is today's main news topic?

5.046 - 24.375 Shumita Basu

Good morning. It's Tuesday, April 8th. I'm Shamita Basu. This is Apple News Today. On today's show, the flight attendants working ISIS deportation flights, the dark secrets of Johnson & Johnson, and a New York community rallies to bring a mother and her three children home from immigration detention.

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Chapter 2: How are tariffs affecting the US stock market?

34.11 - 54.97 Shumita Basu

But first, it was another wild day for stocks as the markets continued to react to President Trump's tariff policy. The Dow Jones fell more than 300 points, marking a third straight day of losses and its biggest one-day swing in points ever. The S&P 500 dipped about a quarter of a percent and briefly entered bear market territory. The Nasdaq, meanwhile, rose 0.1 percent.

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56.471 - 73.497 Shumita Basu

Also exacerbating the volatile trading session today, President Trump continued his back and forth with China, threatening to enact additional tariffs of 50 percent if Beijing doesn't remove its 34 percent tariff on U.S. goods. Beijing issued a statement saying China will, quote, fight to the end.

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74.904 - 95.329 Shumita Basu

As we continue to examine the fallout of the Trump administration's tariff policy, let's take a closer look at Michigan. Nearly 20% of the state economy is tied to the auto industry, which is now facing 25% tariffs on imported vehicles. And starting next month, Trump has promised 25% tariffs on imported parts as well.

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Chapter 3: What is the impact of tariffs on Michigan's auto industry?

96.049 - 103.771 Jeanne Whalen

I think what they're trying to figure out right now, one is which auto parts are going to be included on the list of things that get tariffed.

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104.349 - 108.875 Shumita Basu

Gene Whalen is an economics reporter at The Wall Street Journal who recently spent time in Detroit.

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109.704 - 116.025 Jeanne Whalen

So I think there's a lot of lobbying happening between the companies and the government about what will be on that list.

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116.845 - 136.629 Shumita Basu

One reason tariffs represent such a threat to Michigan is because many auto manufacturers, through free trade deals like NAFTA, moved production to other countries or states over the last few decades, where they could produce at lower costs. That means Michigan's auto industry today increasingly depends on places like Canada, Mexico, and China—

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137.169 - 149.52 Shumita Basu

Auto parts typically cross the border multiple times as a car is assembled. Whalen told us it's a little too early to say how these tariffs could change Michigan's auto industry at large, but there are some clear impacts so far.

Chapter 4: How are tariffs influencing jobs in the auto industry?

150.544 - 176.924 Jeanne Whalen

One of the big employers in the Detroit region, Stellantis, which makes Jeeps and Chryslers, shut down two factories in Mexico and Canada temporarily as it tries to figure out how these tariffs are going to affect its business. And that caused the company to then also temporarily lay off 900 people in Michigan and Indiana who supply parts to those factories.

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177.751 - 200.414 Shumita Basu

Other local auto suppliers in the Detroit area are talking about possibly raising prices for customers. A major economic group that consults for the auto industry said tariffs could add anywhere from $2,500 to $12,000 to the overall price of many new cars. And Whalen spoke to one economist at the University of Michigan about the potential impact of the recent steel and aluminum tariffs.

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200.874 - 212.104 Shumita Basu

He told her he thinks they'll cost around 600 jobs in Michigan's auto industry by the end of 2026. And the effects of that will ripple out, affecting other kinds of businesses, too.

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212.924 - 227.057 Jeanne Whalen

He's estimating that those tariffs alone will cost an additional 1,700 jobs at things like restaurants and dry cleaners and hotels and all of the industries that support the auto industry.

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227.975 - 245.622 Shumita Basu

At the automakers, workers have had mixed reactions to the tariffs. Some told Whelan they are cautiously optimistic. And Sean Fain, the leader of the United Auto Workers Union, which represents hundreds of thousands of workers in the industry, told NPR he believes the tariffs will help rebuild domestic manufacturing.

246.522 - 256.186 Sean Fain

You know, we've sat here for the last 30 plus years with the inception of NAFTA back in 1993, 94, and watched our manufacturing base in this country disappear completely.

256.82 - 267.385 Shumita Basu

But despite those misgivings about globalized free trade and a desire to return more manufacturing to the United States, some autoworkers Whelan spoke with are feeling less confident.

Chapter 5: What are the views of autoworkers on the tariffs?

268.24 - 288.308 Jeanne Whalen

They were nervous because, you know, there have been all of these prognoses that these tariffs will add so much cost for the automakers that the automakers are going to jack up their prices even more on new cars. And if that happens, more people will stop buying new cars. And that means the automakers will cut production and there could be layoffs.

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289.088 - 304.762 Shumita Basu

And for a lot of people in Michigan, the risk of a recession fueled by tariffs causes extra angst. Detroit and the entire U.S. auto industry almost didn't survive the Great Recession of 2008. Rebuilding took a long time and no one wants to move backwards.

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312.941 - 331.483 Shumita Basu

Now to recent reporting from ProPublica that offers a rare window into the conditions experienced by people on deportation flights from the perspective of the cabin crew. Their stories paint a very different picture than the one offered by the Trump administration, which has characterized the deportations as an efficient military operation.

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332.063 - 345.394 Shumita Basu

In reality, the vast majority of these flights have used chartered planes. There are some ICE officers and hired security on board, but these planes are crewed by civilian flight attendants, most of whom didn't knowingly sign up for this work.

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346.38 - 357.167 Shumita Basu

ProPublica recently spoke to seven flight attendants with Global Crossing Airlines, known as Global X. It's a startup that promised employees the chance to fly with celebrities and star athletes.

357.627 - 375.159 Shumita Basu

But today it operates most of the federal government's deportation flights, including the transport of hundreds of Venezuelan migrants who were sent to a notoriously harsh prison in El Salvador last month, despite a federal court order blocking the flights and despite questionable evidence to support most of those deportations.

376.239 - 389.774 Shumita Basu

ICE, Global X and the FAA did not respond to ProPublica's request for comment in the story. But the flight attendants who spoke to reporter Mackenzie Funk told him they don't feel like they can treat passengers humanely or keep them safe.

Chapter 6: What are the conditions on deportation flights?

390.434 - 395.34 Mackenzie Funk

There was a range of emotion about what they had to do on these flights or rather what they didn't have to do.

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396.069 - 416.724 Shumita Basu

The flight attendants told him they had strict rules to follow. No eye contact with migrants, no talking to them, no walking down the aisle without a guard to escort you, and only guards were allowed to take migrants to the bathroom or give them food and water. The thing that disturbed and worried many of the attendants was the fact that most passengers were in shackles.

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417.425 - 424.35 Mackenzie Funk

And where they were unified was this fear that in the event of an emergency, they couldn't imagine how they would get everybody off.

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425.296 - 442.897 Shumita Basu

All crew members were trained on FAA safety protocol, which says a plane should be evacuated in 90 seconds in an emergency. But the flight attendants told Funk they hadn't been trained on how to evacuate passengers in chains. And some of the attendants said they were horrified by the little bit of guidance that they did get.

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443.547 - 456.97 Mackenzie Funk

Three of them said, pilots told us, if there's an emergency, just get yourself off the plane. That's it. Open the door and get yourself off the plane and don't check on the migrants. That's not really your responsibility.

457.802 - 474.835 Shumita Basu

In some cases, they chose to break protocol. In little ways, like returning a hello to a passenger who greeted them. And in big ways, too. On one flight, a little girl with a fever who was struggling to breathe collapsed. Her oxygen levels were dangerously low, so one of the flight attendants raced to help her.

475.336 - 483.262 Shumita Basu

The plane made an emergency landing in Arizona, where paramedics took the child and her mother to the hospital, but the girl's father had to stay on the plane.

484.335 - 500.425 Mackenzie Funk

And the flight attendant who told me this couldn't believe it. She didn't know if the girl was going to live or die. It looked like the mother was about to have her own crisis. And yet they wouldn't allow the family to stay together. It was her understanding that the father was still going to be deported and that only one parent could go.

501.145 - 509.53 Mackenzie Funk

And she yelled at the ICE officer on board and said, this, this is not okay. And was told, well, only one can go. I'm sorry. That's the rule.

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