America
US tariffs on steel and aluminum set to impact $150 billion market
The 25% tariff on steel and aluminum products imposed by US President Donald Trump’s administration on Wednesday is expected to create upward pressure on prices for approximately $150 billion worth of imports, negatively impacting the profits of American automakers and other companies.
The US imports about one-fifth of the steel it consumes. More than 20% of this import by weight comes from Canada, followed by Brazil at 16%, and the European Union at 7%, with Japan ranking seventh at 4%. Canada is also the largest supplier of aluminum to the US.
Because the direct cost of tariffs falls on importers, this will mean higher costs, especially for manufacturers in the US auto industry.
US-based Wolfe Research anticipates the 25% tariff will drive the price of steel products up by as much as 16% above the 2024 average. Aluminum prices, which are already trending upward, are expected to nearly double.
Nomura Securities research analyst Anindya Das estimates the impact on automakers’ fiscal 2025 operating profits from a 10% increase in steel and aluminum prices compared to the 2024 average. According to this analysis, American players Ford Motor and General Motors will face a hit of approximately 3% to 4% if they cannot pass on their costs through higher prices.
Toyota Motor will experience a smaller decline of 0.5%, while the impact on Subaru, which conducts a large portion of its production in North America, will be around 2%.
Some parts manufacturers affiliated with Toyota bring steel from Japan for use in their US production facilities, and there have been calls for the company to cover the higher costs resulting from the tariffs.
A Toyota executive stated, “Tariffs are a factor outside their control, so we will respond appropriately.”
Japan has pushed to be exempted from the tariffs. “Steel and aluminum products from Japan do not harm the national security of the US,” Cabinet Chief Secretary Yoshimasa Hayashi told reporters on Wednesday. “On the contrary, high-quality Japanese products are difficult to substitute and are necessary to make the US manufacturing sector more competitive, and greatly contribute to US industry and employment,” he added.
According to EU-based Global Trade Alert, the tariffs announced by the Trump administration last month cover a total of 289 categories, excluding overlaps between the steel and aluminum lists. These items, which also include kitchen and sporting goods, accounted for approximately 4.5% of the US total last year, with $151 billion in imports.
China was the largest importer at $35 billion, followed by Mexico at $30.6 billion, the EU at $20.3 billion, and Canada at $17.1 billion. Japan ranked seventh at $7 billion. When EU members were counted as separate countries instead of a single bloc, 27 economies had exposures exceeding $500 million.
To avoid tariffs, steel and aluminum exports previously destined for the US may be sold in other markets instead. Jakob Stausholm, CEO of Anglo-Australian iron ore miner Rio Tinto, said last month that selling aluminum in other markets such as Europe was an option.
Tadashi Imai, chairman of the Japan Iron and Steel Federation and president of Nippon Steel, recently stated that the biggest concern is that the tariffs “contribute to the market collapse caused by China’s excessive exports.”
With China’s economy declining, steelmakers are selling products at low prices elsewhere that cannot be absorbed by the domestic market. If they face higher barriers in the US, these goods could flow to other countries.
The US is also the world’s largest exporter of scrap iron and steel, and rising scrap prices leaving the country are likely to reverberate in the global market.
A representative from Japanese aluminum manufacturer UACJ said, “The short-term impact will be small, but it could be larger in the long term.”
Although the company generally produces products for the US domestically, it imports some products with special requirements from Japan in small quantities. According to UACJ, starting alternative production in the US could take three to four years.
Other companies are turning to completely different materials. Coca-Cola stated last month that it would switch some packaging from aluminum to plastic if the tariffs came into effect.
America
US wealthy demolish multimillion-dollar mansions for land
Wealthy buyers in the US are tearing down multimillion-dollar homes shortly after purchasing them for hundreds of millions of dollars.
According to a report by The Wall Street Journal, the trend is driven by a shortage of land in prestigious locations, particularly along coastlines.
For ultra-wealthy buyers, the prime factor has become the land’s location rather than the structure standing on it. After the acquired properties are flattened, newer, more modern homes are built on the cleared lots.
Drawing attention to the shift in the luxury real estate market, the report noted:
“The home itself, formerly the primary driver of an expensive real estate purchase, is now almost beside the point. Buyers are competing first and foremost for well-located land, situated on the ocean or a mountaintop.”
The newspaper cited moves by US billionaire William Lauder as an example. Lauder purchased the oceanfront estate of radio host Rush Limbaugh, who died in March 2023, for $155 million and had it completely demolished in July.
Lauder had previously torn down two homes situated on roughly 1.2 hectares of land along the Palm Beach coast. Having initially planned to construct his own residence on the parcel, Lauder subsequently sold the cleared plot for approximately $200 million.
Jonathan Miller, a real estate appraiser, stated that such transactions are becoming increasingly common as land prices rise.
Amid this momentum, estate agents have also begun marketing luxury homes directly as teardown lots.
Listings use artificial intelligence-generated imagery to showcase how the land would look without the structures on it.
Marketers avoid using the word “demolition” directly, resorting instead to terms such as “adaptive reuse”.
Teardown listings rise across luxury housing market
The trend is not confined to the coast and is spreading to other regions across the US.
Data from property brokerage Redfin reveals that references to demolishing buildings are becoming more frequent in sales listings.
The share of such listings exceeds 15% in the Bunker Hill Village area of Houston, while standing at 6.67% in Pimmit Hills, Virginia.
Dina Goldenteyer, a real estate agent working in Miami, remarked that serial demolitions have become more frequent because buyers no longer appreciate homes older than a decade.
Former retail executives Jamie Dooley and Christine Scott spent $3.7 million in 2020 to demolish a seaside home near Destin, Florida.
Although the couple spent five years building a modern home on the cleared site, they listed the resulting new structure with a demolition condition, citing the fact that no one wanted to buy the property as it stood.
William Paddock, an employee at the environmental consultancy WAP Sustainability, pointed to the environmental damage caused by this construction cycle.
Paddock emphasized that tearing down a home of roughly 1,000 square metres and replacing it with a new building of approximately 2,700 square metres generates a carbon footprint equivalent to the annual emissions of an average 250 American households.
America
US inflation reaches 3.7% as midterm election campaign intensifies
An uptick in September inflation as the US midterm elections approach has pushed the cost-of-living debate back to the centre of the agenda for Democrats seeking to regain control of Congress from Republicans.
Annual inflation stood at 3.7% in September, according to the Consumer Price Index published by the Bureau of Labour Statistics, with energy, petrol, and electricity costs rising on a monthly basis.
Food prices remained flat from August to September, recording a 2.5% increase compared with the same period last year.
Democrats are anchoring their election campaigns to pledges of easing the cost of living, blaming the price increases on President Donald Trump’s tariffs and the war with Iran.
Trump and Republicans, pointing to the numerous left-wing candidates who won primary elections this year, contend that the opposition has become captive to “communists” within the party.
When annual inflation stood at 2.4% in February, the US and Israel launched the Iran war on the final day of that month, and prices continued to climb throughout the conflict.
The recent acceleration has not entirely reversed the retreat from the 40-year peak of 9.1% recorded in June 2022; however, the rate has remained above the Federal Reserve’s 2% target for over five years.
Fed policymakers raised the benchmark interest rate by a quarter of a percentage point last month, citing the battle against stubborn inflation. Officials will convene again next week to consider whether to raise rates or hold them within the 3.75% to 4% target range.
Energy and fuel record sharpest increase since first month of war
In September, energy prices posted their largest monthly jump since March, the first full month of the war with Iran, climbing 20.4% year-on-year. Energy costs had risen 2.1% from July to August, after falling 1.5% from June to July and 5.7% from May to June.
Recent escalations in Iranian attacks on oil tankers in the Strait of Hormuz, alongside more frequent strikes by Ukrainian forces against Russian refineries, have strained global crude oil and refined product markets, driving up US petrol and diesel prices.
Petrol prices also recorded their sharpest monthly increase since the first month of the war, climbing 9.1% from August to September, bringing the annual increase to 35.3%.
American Automobile Association (AAA) data shows the average price of regular petrol across the US stands at $4.26 per gallon; while below the level of roughly $4.48 recorded a month ago, it remains more than $1.20 higher than a year earlier. Average gallon prices exceed $6 in California and $5 in both Washington state and Nevada.
Electricity prices rose 0.2% from August to September, offsetting the 0.2% decline between July and August, and were up 4.4% year-on-year.
Heavy power demand from new data centres is feeding through into local household electricity bills. Trump argued that companies must cover the cost of the electricity required by their data centres themselves.
In a post on Truth Social, Trump claimed that he was requiring large data centres to generate their own power and feed the surplus back into the local grid, suggesting this could bring about “a major drop” in electricity prices.
Used vehicle market posts monthly rise as food costs stabilise
The cost of food at home fell 0.1% month-on-month in September, while dining out increased 0.2%.
Egg prices dropped to $2.27 a dozen, falling roughly 35% compared with September 2025 and remaining well below the 20-year peak of $6.23 recorded in March 2025.
Ground beef prices rose roughly 2.4% compared with September 2025, but at $6.48 a pound, they remained below the 20-year high of $6.98 reached in June.
Chicken held steady at its year-earlier level of $2.06 per pound last month, having fluctuated between $2.01 and $2.09 since November 2024.
Used car and truck prices fell 1.5% compared with September 2025, but rose 0.7% month-on-month in September following 0.4% increases in both July and August.
Heather Long, chief economist at Navy Federal Credit Union, noted that the sector faces severe pressure stemming from a combination of expensive replacement parts and a shortage of skilled labour.
Speaking to The Hill, Long emphasised that every cost pressure across the market is being felt directly at local auto repair shops.
America
Anthropic posts $80.7bn loss ahead of IPO as computing costs soar
Anthropic, developer of the artificial intelligence model Claude, reported a net loss of $80.7 billion for the first six months of 2026 ending 30 June.
According to a report by The Wall Street Journal citing the company’s draft initial public offering prospectus, this recorded loss nearly doubled the $42 billion loss incurred across the entirety of 2025.
The vast majority of that enormous figure, accounting for $72 billion, stemmed from accounting-driven book-value write-downs.
In contrast, the company saw a sharp surge in revenue, with turnover in the first half of the year climbing to $16.3 billion from $1.1 billion in the same period of the prior year.
During this period, Anthropic spent approximately $9 billion on computing power and infrastructure needs, surpassing in just six months the $7.3 billion spent across the whole of 2025.
The company has commitments to pay roughly $450 billion over the next seven to 10 years under cloud service contracts.
Under these obligations, contracts are planned for $111 billion with Google Cloud, $110 billion with Amazon Web Services, and $31 billion with Microsoft.
Anthropic will also spend up to $86 billion by 2033 and 2034, respectively, to lease Nvidia chips through smaller AI-focused cloud providers Nscale and Lambda.
The company could spend an additional $750 billion in the coming years to expand its computing capacity.
Roughly a third of the draft IPO prospectus was dedicated directly to risk factors.
The document highlighted the possibility that models could cause tangible real-world harm, noting that artificial intelligence could exhibit a “self-preservation” tendency and produce responses resembling “blackmail”.
Anthropic warned that the scale of damage caused by an AI-driven “catastrophic event” could render insuring against such risks impossible.
According to market expectations, Anthropic’s IPO could rank among the largest transactions in history, potentially surpassing SpaceX’s record.
Following the market debut, the company’s market valuation is projected to reach up to $2 trillion.
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