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Mexico Slaps Up to 50% Tariffs on Chinese Goods
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By Mark Maurer | WSJ Leadership Institute
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Good morning, CFOs. Mexico’s tariff hike draws an outcry from Beijing; Disney will invest $1 billion in OpenAI; and Lululemon’s CEO plans to depart next month.
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Chinese-made BYD electric cars at a port in eastern China’s Jiangsu province. STR/AGENCE FRANCE-PRESSE/GETTY IMAGES
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International tariff drama shows no sign of letting up.
Mexico’s move to ratchet up tariffs on key Chinese imports earned it a stiff warning from Beijing as Mexican authorities prepare for a complex review of a vital free-trade deal with the U.S. and Canada.
Mexico’s senate approved a bill Wednesday to raise tariffs to as high as 50% on cars, steel and other goods from China and other Asian countries with which it lacks a trade agreement. Mexico has become a major destination for Chinese-made vehicles, which account for almost one-third of the estimated 1.6 million units sold in Mexico this year.
How are companies affected? The measures are likely to affect companies like BYD, which has expanded aggressively across the country over the past two years by exporting its affordable EVs made in China. Automakers with manufacturing operations in Mexico such as General Motors, Ford, Stellantis and South Korea’s KIA will still be allowed to import vehicles made in China tariff-free.
What does this mean for the U.S.? “The tariffs help to achieve many of the Mexican government’s goals—appeasing the U.S., mending public finances and protecting domestic firms,” William Jackson of U.K.-based research firm Capital Economics said Thursday. The measures would create a tougher environment for China’s exporters, he said.
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Content from our sponsor: Deloitte
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Holiday Travel Intent Rises, But Planned Spending Hits Turbulence
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More Americans plan to travel this holiday season than in the past five years, yet rising financial concerns are likely to temper overall spending and market momentum, according to an annual survey. Read More
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What Else Matters to CFOs
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ANDREW HARNIK/GETTY IMAGES
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The Federal Reserve’s board of governors voted unanimously to reappoint 11 reserve bank presidents to new five-year terms beginning March 1, 2026, the central bank said on Thursday.
The reappointment process had always been an under-the-radar administrative process that didn’t attract attention until this year because President Trump has escalated a pressure campaign on the central bank to cut interest rates.
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📰 Other headlines
📈 Earnings wrapup
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$1.9 Billion
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The amount by which gold imports rose in September. The U.S. trade deficit narrowed to its lowest level in five years that month, according to the Commerce Department, mostly because U.S. investors moved gold back overseas after a huge run-up in imports of the precious metal.
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Where senior finance leaders confront today’s expanding remit. Connect on capital, regulation, technology, and talent — and lead with clarity.
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Lululemon Athletica, the Vancouver-based maker of athletic wear, said Calvin McDonald plans to step down as chief executive, following recent criticism from the founder and growing angst among investors. Meghan Frank, chief financial officer, and Andre Maestrini, chief commercial officer, will serve as interim co-CEOs. McDonald, who had served as an executive at the beauty chain Sephora, took the helm of Lululemon in 2018 and steered it through the pandemic, tripling its annual sales during his tenure to $10.6 billion. More recently, though, the company’s U.S. sales have faltered.
Altria Group, the Richmond, Va.-based tobacco company, said Chief Executive Billy Gifford will retire in May and named its current CFO Sal Mancuso as Gifford's replacement. Gifford, who has been CEO since 2020, will serve as a consultant to the company following his retirement through at least the end of 2026. Mancuso has been with the company since 1990 and served as CFO since 2020. His compensation as CEO is yet to be determined. Heather Newman, Altria's chief strategy and growth officer since March 2022, will become the company's new CFO, effective May 14. As part of the compensation tied to
her appointment, Newman received a stock grant valued at $1.5 million that will vest in 2030.
—Kelly Cloonan and Nicholas G. Miller contributed to today’s Ledger.
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The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy. Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew. You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com.
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