FT News Briefing US defence stocks get left behind
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Mar 4, 2025 The U.S. pauses military aid to Ukraine, raising concerns for defense contractors amid budget cuts. Meanwhile, the Chevrolet Silverado faces vulnerabilities from trade tariffs, complicating its supply chain. In Europe, defense stocks surge as military spending rises, contrasting sharply with their U.S. counterparts, which lag behind in a global stock rally. Additionally, Eurozone inflation dips to 2.4%, signaling easing price pressures, while the automotive industry braces for potential tariff impacts on both manufacturing and consumer prices.
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Silverado's Supply Chain Vulnerability
- The Chevrolet Silverado, a popular American pickup truck, is mostly manufactured outside the U.S.
- This makes it vulnerable to tariffs on Canadian and Mexican imports.
Complex Automotive Supply Chains
- The Silverado's production process highlights the complexity and global nature of automotive supply chains.
- Components come from various countries, including Mexico, Canada, and Germany.
GM's Tariff Preparations
- GM has been preparing for tariffs since Trump's election, shifting production and reducing inventory.
- Uncertainty surrounding tariff implementation makes planning difficult for automakers.