Tesla electric car sales in the European Union plunged 45 percent in the first quarter of 2025 as its boss Elon Musk drew criticism for his role in US President Donald Trumps administration, according to figures released Thursday. The European Automobile Manufacturers Association (ACEA) said that sales of new Tesla vehicles in the bloc fell by 36 percent in March, and by 45 percent -- to just over 36,000 units -- in the first quarter compared the same periods a year earlier. It was the biggest fall in sales of any of the major car groups tallied in the associations report, despite a growth in electric vehicle sales overall. Tesla showrooms have been hit by vandalism and boycott calls in Europe and the United States in a backlash against public service cuts introduced by Musk in his role as a close adviser to Trump. On Tuesday the company reported a 71-percent drop in first-quarter profits, signalling a hit to demand due to what it called "changing political sentiment". Tesla reported profits of $409 million following a drop in sales, while revenues fell nine percent to $19.3 billion. Musk promptly announced he would scale back his work for the Trump administration in May to focus on Tesla. Electric vehicle sales grew in several European countries including Germany, as well as in Britain, the ACEA said. But despite the EU aim of slashing petrol car sales to reduce climate-warming emissions, they still only accounted for 15 percent of the auto market. ACEA chief Sigrid de Vries in a news release highlighted a "persistent gap between ambitious decarbonisation goals, and the reality check of slower-than-expected consumer uptake". Hybrid fuel-electric cars held the biggest share of the EU market: 36 percent compared to 29 percent for petrol-only vehicles.
Asian markets were mixed on Thursday after President Donald Trump said he had "no intention" of firing the US central bank head and made conciliatory comments on his trade war with China. Trumps attacks on the Federal Reserve for not cutting interest rates had raised fears that he would fire its "Mr. Too Late" chief Jerome Powell, in a major blow to its independence. Trumps rowback on Wednesday boosted Wall Street, as did his comments that US tariffs on China were "very high" and would "come down substantially". The broad-based S&P 500 finished 1.7 percent higher on Wednesday. European stocks also rallied, with Frankfurt gaining more than three percent. Trump could also exempt car parts from some tariffs on China alongside those on steel and aluminum in a "destacking", the Financial Times reported. Tokyo rose more than one percent, while Sydney added 0.6 percent and Shanghai 0.3 percent. But Seoul fell after official data showed South Koreas economy unexpectedly contracted 0.1 percent in the first three months of 2025. Hong Kong and Taipei were also slightly down. "Both US equities and government bonds have staged a relief rally over the past 24 hours, as concerns about Fed independence and the trade war have eased," said Hubert de Barochez at Capital Economics. "But the fact that the rally was sparked largely by conciliatory remarks from US President Trump -- whose rhetoric is notoriously volatile -- raises questions about its durability," de Barochez said. On trade, Washington has imposed additional tariffs of 145 percent on a range of products from China, while Beijing has retaliated with levies of 125 percent on US goods. Treasury Secretary Scott Bessent told reporters on Wednesday that Washington is "not yet" speaking with Beijing on tariffs, calling the high levies not "sustainable". Bessent also said that in its talks with Japan on tariffs, Washington had "absolutely no currency targets", after repeated comments from Trump that he wants a stronger yen. Japans envoy Ryosei Akazawa met Trump and other senior US officials last week, and local media reported Thursday that he will return for another round on May 1. Nintendo shares gained as much as 5.5 percent after its president said there were "extremely high" pre-orders in Japan for its Switch 2 game console ahead of its global launch on June 5. - Key figures at 0300 GMT - Tokyo - Nikkei 225: UP 1.9 percent at 34,868.63 (break) Hong Kong - Hang Seng Index: DOWN 0.23 percent 22,022.77 Shanghai - Composite: UP 0.26 percent at 3,304.97 Euro/dollar: UP at $1.1351 from $1.1317 on Wednesday Pound/dollar: UP at $1.3281 from $1.3257 Dollar/yen: DOWN at 142.78 from 143.49 yen Euro/pound: UP at 85.47 from 85.34 pence West Texas Intermediate: DOWN 0.05 percent at $62.24 per barrel Brent North Sea Crude: UNCHANGED at $66.12 per barrel New York - Dow: UP 1.1 percent at 39,606.57 (close) London - FTSE 100: UP 0.9 percent at 8,403.18 (close)
Vietnam and the United States have started talks "on bilateral economic and trade issues" in the wake of threatened US tariffs, Hanoi said. US President Donald Trump this month threatened massive 46 percent levies on Vietnam, with Washington accusing the country of facilitating Chinese exports to the United States and allowing Beijing to get around tariffs. Vietnams minister of industry and trade Nguyen Hong Dien had a phone call late Wednesday with US Trade Representative Jamieson Greer, the ministry said in a statement posted on its website after the meeting. "This is an important meeting to discuss the issues of principles, scope and roadmap for negotiations," said the statement. The United States was Vietnams biggest export market in the first three months of the year. Vietnams trade ministry has ordered authorities to tighten control over the origin of goods to avoid sanctions, according to a document seen by AFP. Chinas President Xi Jinping urged the communist neighbour to join forces in upholding free trade during a visit to Vietnam last week. Beijing also said it "firmly opposes" other countries making trade deals with the United States at Beijings expense, warning it would take "countermeasures" against them. Vietnam was Southeast Asias biggest buyer of Chinese goods in 2024, with a bill of $161.9 billion. The countrys Prime Minister Pham Minh Chinh has said that any talks were "not to affect another market". During the phone call, Dien reiterated Vietnams readiness "to negotiate and resolve issues of concern to the United States, and to find reasonable solutions for mutual benefit, in the spirit of harmonious interests and shared risks". The statement quoted Greer as saying he believed the two sides "will soon reach appropriate solutions, promoting stable and mutually beneficial economic and trade relations". Vietnam has long pursued a "bamboo diplomacy" approach -- striving to stay on good terms with both China and the United States.
Finnish telecoms equipment maker Nokia on Thursday reported a $68 million euro loss in net profit for the first quarter, citing the tariff wars and "rapidly evolving global trade landscape". The company said tariffs imposed by the United States could result in "some short-term disruption". "We are not immune to the rapidly evolving global trade landscape. However based on early customer feedback, I believe our markets should prove to be relatively resilient", Justin Hotard President and CEO of Nokia said in a statement. "Based on what we see today, we currently expect a EUR 20 to 30 million impact to our comparable operating profit in the second quarter from the current tariffs", Hotard said. US President Donald Trump implemented a tariff of 10 percent on global imports this month, but he paused plans for higher duties on dozens of countries, including a 20 percent duty for goods from EU nations. Nokia also reported net sales of 4.4 billion euros ($4.9 billion), down one percent compared to a year ago. It had posted a net profit of 438 million euros in the first quarter of last year. The company expected growth in its Network Infrastructure, Cloud and Network Services and Mobile Network to boost sales in 2025. Alongside its first quartelrly report, it announced a contract extension with T-Mobile US on Thursday, saying it continued "to see positive signs of stabilization" in Mobile Networks.