Apple News Today: How Tariffs Could Transform the Auto Industry
Hosted by Shemitah Basu
Release Date: April 8, 2025

Market Turbulence Amid Tariff Policies

Shemitah Basu opens the episode by addressing the volatile stock market reaction to President Trump's tariff policies. On April 8, 2025, the Dow Jones experienced a significant drop of over 300 points—the largest single-day swing in its history—marking its third consecutive day of losses. The S&P 500 briefly entered bear market territory with a slight dip of about 0.25%, while the Nasdaq edged up by 0.1%. The trading session was further unsettled by escalating tensions between the US and China, with President Trump threatening an additional 50% tariff if China did not remove its existing 34% tariff on US goods.

Impact of Tariffs on Michigan's Auto Industry

The core focus shifts to Michigan's auto industry, which constitutes nearly 20% of the state's economy. Under the new tariff regime, imported vehicles face a 25% tariff, and starting next month, a similar rate will apply to imported auto parts.

Gene Whalen, an economics reporter at the Wall Street Journal, provides insights into the situation:

"[...] a lot of lobbying happening between the companies and the government about what will be on that list."
[01:31]

Shemitah explains that Michigan's dependency on foreign production, facilitated by free trade agreements like NAFTA, makes the state vulnerable. Auto parts frequently cross borders multiple times during assembly, primarily involving Canada, Mexico, and China. The imposition of tariffs threatens to disrupt this intricate supply chain.

Key Impacts Highlighted:

• Factory Shutdowns and Layoffs: Stellantis, a major Detroit employer, temporarily closed two factories in Mexico and Canada, leading to the layoff of 900 workers in Michigan and Indiana. [02:26]
• Price Increases: Local auto suppliers may raise prices, potentially adding $2,500 to $12,000 to the cost of new cars.
• Job Losses: An economist from the University of Michigan estimates that steel and aluminum tariffs could eliminate around 600 jobs in the auto sector by 2026, with ripple effects leading to an additional 1,700 jobs lost in supporting industries such as restaurants and hotels. [02:53]

Worker Sentiments: Reactions among auto industry workers are mixed. While some remain cautiously optimistic about the tariffs fostering domestic manufacturing, others express anxiety over potential price hikes reducing car sales and triggering further layoffs.

"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."
– Sean Fain, United Auto Workers Union Leader
[04:02]

Despite the leadership's positive outlook, many workers are concerned about the economic stability of Michigan and the broader implications of a possible recession.

Behind the Scenes of ICE Deportation Flights

Transitioning from economic issues to immigration, Basu delves into ProPublica's investigative reporting on ICE's deportation flights. Contrary to the Trump administration's portrayal of these operations as efficient, ProPublica reveals that most flights are operated by civilian flight attendants from Global Crossing Airlines (Global X). These attendants, who did not knowingly sign up for deportation duties, face strict restrictions:

• No Interaction: Flight attendants are prohibited from making eye contact, conversing, or moving freely without a guard escort.
• Humanitarian Concerns: Many passengers are shackled, and attendants express fear over their inability to evacuate passengers safely in emergencies.

Notable Incidents: One flight witnessed a medical emergency when a child with a fever and breathing difficulties collapsed. The attendant intervened, resulting in an emergency landing to save the child's life, but the father remained on board due to deportation rules, leading the attendant to quit her job in protest.

"This is not okay."
– Flight Attendant
[07:59]

This section underscores the human and ethical challenges faced by flight attendants, contrasting sharply with the administration's official narrative.

Johnson & Johnson’s Role in the Opioid Crisis

Investigative reporter Gardner Harris discusses his new book, "No More: The Dark Secrets of Johnson & Johnson," which exposes the company's significant yet underreported contribution to the opioid epidemic.

Key Findings:

• Supply Chain Complicity: Johnson & Johnson supplied 60% of the opioid-related substances found in morgues, compared to Purdue Pharma's 10-20%.

"This is a company that played, if not the major role in the opioid crisis, one that was equally bad with Purdue Pharma."
– Gardner Harris
[09:04]

• Product Misuse and Marketing Practices: The company not only provided raw materials for opioids like OxyContin but also marketed products like the fentanyl patch, Duragesic, as non-addictive despite evidence to the contrary. This led to widespread addiction and deaths.

Harris's extensive reporting reveals a pattern where Johnson & Johnson contributed to millions of injuries and fatalities through various products, challenging the company's image as a socially responsible leader.

"It's hard to even conceive of this now that anyone could possibly claim that fentanyl is non-addictive. But that's what Johnson and Johnson did for years and years and years. So of course, death soared."
– Gardner Harris
[10:43]

Additional News Highlights

Basu concludes the episode with brief updates on several other significant stories:

• US-Iran Nuclear Talks: President Trump announced upcoming negotiations with Iran to revive nuclear talks, emphasizing the importance of preventing Iran from becoming a danger.

• Severe Weather Events: A series of devastating storms across the Midwest and South resulted in at least 24 deaths, with ongoing flooding threats in Arkansas, Mississippi, Tennessee, and Ohio.

• Immigration Developments:

  • Supreme Court Chief Justice John Roberts temporarily paused the deportation of a Maryland man mistakenly sent to a Salvadoran prison.
  • In Sackets Harbor, New York, a community rally led to the release of a mother and her three children from ICE detention after sustained local support.

• Market Rumors: A false rumor on social media briefly uplifted the stock market before being debunked, highlighting the fragile nature of market sentiments.

Conclusion

Shemitah Basu wraps up by directing listeners to the Apple News app for full episodes and continued coverage, emphasizing the importance of staying informed through reliable journalism.

This comprehensive summary encapsulates the multifaceted discussions in the episode, providing listeners with detailed insights into the economic impacts of tariffs on Michigan's auto industry, the humanitarian issues surrounding ICE deportation flights, and the alarming role of Johnson & Johnson in the opioid crisis, along with other pertinent news updates.