A mix of rising Chinese competition, the after-effects of covid-19 and a broad shift away from multilateral free trade has left Britain peculiarly vulnerable https://t.co/U6o4JrXMhp ...

Liberalise at home and lead a new free-trade revolution https://t.co/NdOkcu1aha ...

Core Points - The Supreme Court's potential ruling on President Trump's tariffs could significantly impact economic forecasts and business planning, particularly if the tariffs are deemed unconstitutional [1][2] - Tariff uncertainty has led to a slowdown in hiring and capital spending across various sectors, with businesses hesitant to commit due to the unpredictable tariff landscape [3] - New tariffs can still be imposed under national security laws, which are not affected by the current ruling, potentially expanding tariffs on industries like semiconductors and pharmaceuticals [4] Economic Impact - If the challenged tariffs remain in place, consumer prices could rise by approximately 1%, leading to reduced spending, although this may not trigger a recession [5] - The global economy is undergoing structural changes as businesses adapt to tariff uncertainties, with a shift towards shorter supply chains and diversified sourcing strategies [6][7] - These adjustments may lead to a slight increase in production costs, impacting consumer prices but not significantly harming the overall economy [10] Business Strategies - Companies are increasingly sourcing materials locally or diversifying their supply chains to mitigate risks associated with tariffs [7][9] - The transition to more localized production and diversified sourcing will take time, but it is expected to gradually reshape global production dynamics [11] - The outcome of the Supreme Court decision will have varying effects on specific companies, necessitating close monitoring by affected business leaders [12]

Business strategy - The company emphasizes its global reach due to its small size and exclusive, high-end brand with a "made in Italy" DNA, requiring worldwide sales [1] - The company focuses on maintaining production in Italy to ensure security and stability for customers [2] - The company is prepared to handle complexities and adapt to whatever challenges arise in the business environment [3] Trade and Tariffs - The company views free trade as the ideal approach [1][3] - Tariffs have created uncertainty, but the company anticipates finding a balance between costs and customer impact [3] Competitive Landscape - The company states it has no competitors inside or outside the US [1]

Market Trends & Strategy - Lamborghini emphasizes regionalization over globalization, recognizing the growth in high-net-worth individuals globally, including in previously untapped markets like China [7][8] - The company aims to avoid market saturation by maintaining a global sales view across its 56 markets and 186 dealers, given the context of 80 million cars delivered annually worldwide [9] - Lamborghini is strategically expanding its model lineup from two to three models, with the Urus SUV contributing significantly to volume growth [5][10] - The brand is considering a fourth model, a Gran Turismo (GT) car, to fill a gap in the supercar market [14] - Lamborghini is delaying the all-electric vehicle timeline due to flattening EV demand, opting for a plug-in hybrid Urus successor [29][30] Brand & Customer Profile - Lamborghini sales have increased at least fivefold in the last 20 years, driven by unique brand elements and limited-edition cars that appreciate in value [5][6] - The company's clients, predominantly male entrepreneurs, value the "made in Italy" heritage and typically own at least five cars, with Reuelto owners averaging ten cars [16][17] - The average Lamborghini buyer is under 45 years old, with a significant portion in Asia around 30 years old, including both second-generation wealth and self-made entrepreneurs [18] - Lamborghini is actively working to attract more female buyers through targeted events like "She Drives a Lambo" and by leveraging the Urus's broader appeal [20][21] External Factors - Lamborghini emphasizes the importance of free trade for its global operations, given its small size and exclusive brand positioning [23][24] - The company acknowledges the complexities of tariffs but remains committed to finding a balance between its interests and customer value [26]

Market Dynamics - The report suggests that the current global landscape deviates from a purely free trade and market competition environment [1] - US dynamism is expected to outperform planning and economic statecraft in a free market scenario, but this is not the current reality [1]

Pricing Strategy & Tariff Impact - Lamborghini aims to maintain stable pricing for its Urus and other models [1] - The company acknowledges absorbing a portion of tariff costs on new cars [1] Global Trade & Market Access - Free trade is crucial for Lamborghini's global sales success [2] - "Made in Italy" is a key differentiator, limiting competition and emphasizing production location [2] Future Strategy & Investment - Lamborghini prioritizes profitability for reinvestment in future technologies [3] - The company focuses on brand awareness and image to cultivate a loyal customer base [3] - Staying ahead of trends is essential for Lamborghini's continued success [4]

Manufacturing & Supply Chain - Bringing manufacturing back to America is a desirable goal, echoing Steve Jobs' vision of integrated design and manufacturing [1] - End-to-end control over the manufacturing process, from microchips to finished products, is crucial for high-end products [1][9] - Global supply chains, while offering comparative advantages, can lead to a disconnect between design and manufacturing [1] - A potential 10-15% advantage for companies building in America could incentivize domestic manufacturing [1] Trade & Policy - The speaker has shifted from a staunch free trade advocate to recognizing the importance of domestic manufacturing for job creation and economic stability [1][2] - Unpredictable tariffs, like those implemented by President Trump, are not the ideal approach to incentivizing domestic manufacturing [1][3] - Manufacturing chips in America is crucial to reduce reliance on China [6] Company Specific - Apple's CEO Tim Cook is praised for his ability to navigate political administrations and his expertise in managing complex global supply chains [1] - Apple's collaboration with Corning on Gorilla Glass exemplifies the importance of close partnerships for product perfection [8][9] - Intel's stock is down by 3.8% following concerns about the CEO's ties to China [5]

Trade Policy & Tariffs - The Trump administration imposed new tariffs, some as high as 41%, on countries that haven't reached a trade deal, with these tariffs taking effect a week later [2] - Canada's tariff rate was raised from 25% to 35% [3] - The US has trade deals in place with the UK, Europe, Vietnam, and South Korea, but the tariff increases are significant compared to pre-Trump levels, and the details remain unclear [4] - A federal appeals court is questioning the legality of Trump's unilateral imposition of tariffs using emergency powers [5] - The imposition of tariffs is leading to a "permanent tariff curtain" around the US, potentially ending the era of global free trade led by the US [7] - Future tariffs with most trading partners are expected to be around 15% or higher [10] - Exemptions worth approximately $1 trillion have been granted, with an unclear process for obtaining them [20] Economic Impact & Market Reaction - Tariffs are considered a tax on the American public, with companies initially absorbing the costs before passing them on to consumers, leading to inflation [23] - The market's positive performance is largely driven by a few massive tech companies, while manufacturing companies are bearing the brunt of the tariffs [31] - Specific sectors are negatively impacted, with apparel and accessories stocks down 19%, household products down 7%, and pharmaceuticals down 6% [33] Geopolitical & Legal Considerations - Tariffs are being used not only to correct economic imbalances but also to achieve foreign policy goals, such as influencing Canada's position on Palestine [16] - The legality of using national security as justification for tariffs, especially in cases unrelated to genuine security threats, is under scrutiny [29] - Businesses face uncertainty regarding tariff rates, effective dates, affected goods, and the legal validity of the tariffs [30]

We've now got two trade deal wins on our hands. Last week's deal with Japan and this weekend's deal with the European Union. Despite the market's muted response, Dow slipping 64 points as me inching up 0.02%.NASDAQ advancing.3 33%. I think our country ran the table on both. First, let me just say I play with an open hand.I've never been a free trader. Never. That didn't work for a whole group of angry people in this country who saw their jobs export into other lands.I know the era of free trade brought down ...