October 22, 2025—Top Stories:
Trump Administration Announces Tariff Offset for Autos
President Donald Trump took action to reduce the burden his tariffs and trade agreements have put on domestic auto manufacturers. The move will extend a 3.75 percent U.S. production offset credit that automakers can apply against a 25 percent tariff on auto parts until 2030. It previously was scheduled to decline to 2.5 percent in 2027 and then be eliminated the following year.
The move also puts in place, beginning Nov. 1, a 25 percent tariff on medium- and heavy-duty trucks, as well as the parts used to make those vehicles, and a 10 percent tariff on school buses, city buses, motor coaches and similar vehicles.
Senior officials said the administration was making the changes after consulting with industry, which heavily lobbied the White House. “This is our assessment of what the U.S. industry needs to stay competitive. And to not only stay competitive, but expand domestic production,” one of the officials said.
US and Australia Strike Agreement on Critical Minerals
President Donald Trump announced an agreement with the Australian government to jointly invest in the mining and processing of critical minerals, as the U.S. works to break China’s chokehold on the global supply of the materials.
“In about a year from now, we’ll have so many critical minerals and rare earths, you won’t know what to do with them,” Trump told reporters during a meeting with Australian Prime Minister Anthony Albanese at the White House.
According to the Australian prime minister, the agreement will cover three types of projects: joint activities between Australia and the U.S.; U.S. investment that will be undertaken in Australia, including processing; and projects that Australia will undertake. There will also be a project between Australia, the U.S. and Japan.
UK Starts the Process to Join TPP
Prime Minister Mark Carney’s government introduced legislation in the House Tuesday to implement the United Kingdom’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
The process, common for new free-trade agreements, means Parliament will debate the legislation. It will also be studied in committees where International Trade Minister Maninder Sidhu is likely to be called to be a witness.
The U.K. is the newest member of the now 11-country free-trade agreement, which includes Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
The United States withdrew from the pact in 2017 during President Donald Trump’s first term.
Navarro Believes Manufacturing Gains from Tariffs Will Take Time
It could take more than a year before President Donald Trump’s aggressive new tariff program leads to manufacturing job gains, a top White House trade official said on Friday. “You can’t have the manufacturing jobs until … the plants get built,” said Peter Navarro, White House senior counselor for trade and manufacturing, during a discussion at the Council on Foreign Relations.
So far in the Trump administration, there has been a small loss of manufacturing jobs. Total factory employment in August was 12.722 million, down from 12.755 million in January, a decline of 33,000 jobs. That has provided fuel for critics of Trump’s tariff program, but Navarro asserted that time will prove them wrong because of promises by both U.S. and foreign companies to plow more than $19 trillion worth of investment in the United States.
European Bank Head Says Global Economy Has Yet to Feel U.S. Tariffs
The president of the European Central Bank said Sunday that the world’s economy has “yet to feel the pain” from President Donald Trump’s tariffs.
Speaking on CBS’ “Face the Nation,” Christine Lagarde said that at some point the exporters and importers will no longer accept smaller profit margins caused by tariffs and decide to raise prices.
“These two-thirds borne by two corporates, essentially, the exporter and the importer, is based on a squeeze of their margins,” she said. “How long are they going to put up with a squeeze of the margin — to be seen. And when they don’t, because it’s becoming too tight, then it will be on the consumer. So it’s a question of time.”
Lagarde told host Margaret Brennan that tariffs were one of two factors that have led to the global economy being “in transformation,” the other being advancements in technology.
AAEI Meets with Trade and Development Economists
This week, a trade delegation from the Friedrich Naumann Foundation for Freedom, including economists from Argentina, Poland, Romania, Australia, and Germany, visited AAEI to learn how U.S. companies are navigating the recent changes in global trade policy.
AAEI President and CEO, Eugene Laney Jr., Ph.D. covered three methods U.S. businesses are using to navigate the tariffs: Supply Chain Management, Pricing Models, Artificial Intelligence (AI). The discussion also covered the cost of compliance, how companies are using AAEI to advocate for compliance improvements, and whether U.S. companies are reshoring. The delegation is scheduled to meet with members of Congress, trade associations, and think tanks.
AAEI Industry Insight: Tariffs, Trade, and Transformation: The Changing Landscape of American Aluminum
Aluminum keeps America’s factories moving—from beverage cans to cars to aircraft. In a new article, Matt Meenan, Vice President of External Affairs at The Aluminum Association, explores how evolving trade and tariff policies are reshaping the U.S. aluminum market, from sourcing and recycling to competitiveness and national security.
