Latest News
-
South Africa seeks new US trade deal after tariff hike, says presidency
South Africa's Presidency said Thursday that new U.S. Tariffs highlight the need for a bilateral trade agreement with Washington in order to guarantee long-term trading certainty. On Wednesday, U.S. president Donald Trump announced global reciprocal tariffs for most imports to the United States. Trump imposed an 8% rate on South Africa. The Presidency issued a statement saying that "the tariffs confirm the urgency of negotiating a new bilateral trade agreement with the U.S. as an essential step in order to ensure long-term trading certainty." These latest tariffs will be in addition to 25% on all cars and auto parts imported into the U.S. that will take effect from Thursday. The levies could have a serious impact on South Africa's exports to the United States of parts and vehicles worth over $2 billion. The President's Office added: "While South Africa remains committed towards a mutually-beneficial trade relationship with the United States... unilaterally imposed punitive tariffs serve as a hurdle to trade and shared prosper," (Reporting and editing by Olivia Kumwenda Mtmabo, Sharon Singleton, and Nqobile Dudla)
-
South Africa seeks new US trade deal after tariff hike, says presidency
South Africa's Presidency said Thursday that new U.S. Tariffs highlight the need for a bilateral trade agreement with Washington in order to guarantee long-term trading certainty. On Wednesday, U.S. president Donald Trump announced global reciprocal tariffs for most imports to the United States. Trump imposed an 8% rate on South Africa. The Presidency issued a statement saying that "the tariffs confirm the urgency of negotiating a new bilateral trade agreement that is mutually beneficial with the U.S. as an essential step in order to ensure long-term trading certainty." These latest tariffs will be in addition to 25% on all cars and auto parts imported into the U.S. that will take effect from Thursday. The levies could have a serious impact on South Africa's exports to the United States of parts and vehicles worth over $2 billion. The President's Office added: "While South Africa remains committed towards a mutually-beneficial trade relationship with the United States... unilaterally imposed punitive tariffs serve as a hurdle to trade and shared prosper," (Reporting and editing by Olivia Kumwenda Mtmabo, Sharon Singleton and Nqobile Dudla)
-
Iron ore prices fall due to US tariffs but steel demand remains resilient.
Iron ore futures dipped slightly on Thursday, after U.S. president Donald Trump announced a wide range of reciprocal tariffs. However, seasonal demand for this steelmaking ingredient helped to cushion the downward trend. The May contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading 0.32% lower, at 788.5 Yuan ($108.05). As of 0707 GMT, the benchmark May iron ore traded on Singapore Exchange was down 0.84% at $101.95 per ton. Broker Galaxy Futures stated in a report that U.S. Tariffs were more aggressive than anticipated and will have a negative impact on the ferrous market. Trump announced a minimum 10% tariff on goods imported into the United States on Wednesday, and much higher duties for products from dozens countries. This is a worsening of a trade conflict that could drive inflation up and slow down U.S. economic growth. The new tariff will total 54% on Chinese imports. Beijing on Thursday called for the United States' latest tariffs to be immediately canceled and promised countermeasures in order to protect its own interests. Steelmakers increased production during the construction peak season of March and April to cushion the price fall. The recovery in steel consumption will encourage steelmakers in China to increase their hot metal production, according to a report by Mysteel. ANZ analysts said that iron ore exports were down 17% on a year-over-year basis during the current Australian cyclone seasons. Coking coal and coke, which are both steelmaking ingredients, were down by 0.2% and 0.64% respectively. The Shanghai Futures Exchange saw a loss in most steel benchmarks. Rebar fell by 0.19%, stainless steel dropped 0.92% and hot-rolled coils were down 0.63%. Wire rod was up almost 0.4%. China's financial market will be closed for the public holiday on Friday. Trading will resume Monday, April 7.
-
India's jewellery exports are set to decline sharply due to US tariffs
Industry officials warned that India's gems and jewelry industry, worth $32 billion, is bracing itself for a steep drop in exports due to the high U.S. import tariffs. The United States has imposed a reciprocal 26% tariff on India. This is a blow for the hopes that South Asia had of being relieved under President Donald Trump’s global trade policy. Colin Shah, managing Director of Kama Jewelry - one of India's largest diamond jewellery manufacturers - said that the tariff was higher than expected. "It's quite severe and will impact exports." India is the largest hub in the world for diamond polishing and cutting, with nine out of 10 diamonds processed worldwide. India exports gems and jewelry worth $32 billion annually to the United States, which accounts for almost $10 billion. India exports more gems and jewelry to the United States than it does engineering or electronic goods. The industry is responsible for millions of jobs in South Asia. Exports fell 14.5% in 2023-24 (April-March) due to a weakening demand in China. Shah suggested that a long-term bilateral deal with the United States might help to soften the blow. India and the United States have begun talks to reach a trade agreement as soon as possible. We're pretty optimistic that India will be able to land a deal with the U.S. within the next few weeks. We just have to keep pushing through the tough phase for another few months," said Shaunak Parikh. Vice chairman of GJEPC. (Reporting and editing by Rajendra J. Jadhav)
-
Stocks fall as fear of recession is sparked by trade war
Investors rushed to gold, bonds and the yen as stocks plunged Thursday, frightened that new U.S. trade tariffs would intensify a global trade war and tip the world towards recession. After President Donald Trump's tariffs, which raised import taxes to their highest level in a century, the dollar fell to its lowest point in six months. Olu Sonola is the head of U.S. Economic Research at Fitch Ratings. Many countries are likely to end up in recession. If this tariff rate remains in place for a long time, you can forget about most forecasts. Nasdaq Futures fell 3.2%; European Futures were down almost 2%, and the Nikkei dropped 3% in Tokyo, reaching eight-month-lows. Apple's market cap fell by over $240 billion after its shares dropped 7% during the evening trade. Nvidia's total market value dropped by 5.6%, or $153 billion. The benchmark 10-year U.S. Treasury Yields dropped more than 15 basis point to a 5-month low of 4.04 % and markets have priced in a greater chance of rate cuts, even though tariffs will likely cause U.S. Inflation to spike sharply. Tai Hui is Asia-Pacific Chief Market Strategist at J.P. Morgan Asset Management. She said: "There will be a supply-side impact via tariffs to the U.S. Economy, and on prices." "And (there is) the uncertainty that businesses and consumers face, which both could be problematic for economic growth," said Tai Hui, Asia-Pacific chief market strategist at J.P. Morgan Asset Management. Trump announced an import tariff of 10%, with much higher rates for some trading partners in Asia. China received a 34% tax, Japan 24%, Vietnam 46 %, and South Korea 25 %. The European Union received a 20% tax. Fitch Ratings reports that the effective U.S. Import Tax Rate has risen to 22% from 2.5% under Trump, and reached levels last seen in 1910. Vietnamese stocks fell 6%. CHINA FOCUS Investors bought up safe havens in anticipation of the countermeasures that China and Europe had promised. They also sold exposure to global growth. Brent futures, which are a good indicator of economic activity, fell more than 2%, to $73,28 per barrel. Australian shares and Australian dollars fell. As foreign exchange traders sought safety outside of the U.S. Dollar, gold reached a new record high at $3160 per ounce. The Japanese yen also jumped more than 1 percent to 147.29 dollars. The euro increased by 0.6% to $1.0912. China has, for the time being, kept its currency stable, keeping the yuan at 0.4%, despite the eye-watering tariffs on Chinese exports. The hit to Vietnam was seen as closing down a popular route to work around the tariffs. The Chinese economy is large and there's a hope that Beijing will support Hong Kong and Shanghai stocks. Losses in Hong Kong were limited to 1.5%, and Shanghai losses to 0.5%. George Saravelos, strategist at Deutsche Bank, said that China should be the main focus of attention in the coming days. He asked: "Will China wait for trade talks... or will it absorb this shock?," "Or will China try to 'export the shock'... via devaluation of yuan?"
-
Morning bid Europe-It seems investors don't really like tariffs
Wayne Cole gives us a look at what the future holds for European and global markets. Investors are not happy with a trade war fueled by tariffs and a likely recession. Who knew? Wall St Futures and the Nikkei are both down about 3%. European stock futures have fallen around 1.7%. The Treasury yields have hit multi-month-lows while the dollar index has hit a six-month-low in chaotic conditions. The reaction matched the drama surrounding the announcement as President Donald Trump announced various taxes on live television from a large blue and yellow board. The list included 34% more for China, 20% for the EU, 32% Taiwan, 24% Japan, and 46% Vietnam. Included high levies on Asia were a clear shock for tech stocks, as it will increase costs across their supply chain. Apple shares fell 7% following the bell. Contrary to the arguments of the White House most analysts see the end of the free trade agreement as a shock for U.S. economic growth, and the likelihood of recession will increase. Fed funds futures rose in price to reflect 80 basis points in Fed easing in this year. This is true even though tariffs are sure to cause a sharp spike in U.S. inflation. Analysts have predicted price increases of up to $10,000 for new cars alone. Fed officials often say that they are willing to overlook a single increase in price, but this pandemic illustrates what happens when companies realize they can raise prices and then blame someone else. The White House has said it is open to horse-trading with other countries. The shifting sands will make it difficult for companies to plan investments over the long term. Then there are the countermeasures that will be taken as countries prepare to oppose Trump's world order. Ursula von der Leyen, President of the European Commission, was on the phone just moments ago to promise retaliation if negotiations failed. Students of history know that the Smoot Hawley Tariffs, implemented by the United States in the early 1930s, are what put the "great " in "the Great Depression". Are you trying to stay up-to-date with the latest news on tariffs? Our daily news digest provides a quick overview of the most important headlines that impact global trade. Tariff Watch is available here. The following are key developments that may influence the markets on Thursday. - EU Producer Prices, Service PMIs US trade data ISM services and weekly jobless claims. Fed Vice Chair Jefferson, and Governor Cook talk
-
London copper prices drop as Trump tariffs cause demand concerns
The price of copper in London fell on Thursday as the U.S. President Donald Trump's sweeping tariffs sparked concern about global metal demand. As of 0331 GMT, the benchmark three-month contract on the London Metal Exchange was down by 1.4% to $9,562 per kilogram. The contract had hit $9,507 earlier in the day. This was its lowest level since March 11. Trump announced on Wednesday that a 10% minimum tariff would be applied to most imported goods into the United States. Tariffs on products from more than a dozen countries are significantly higher, triggering a trade war around the world that could increase inflation in the U.S. as well as globally and impede economic growth. China demanded that the United States immediately rescind their most recent tariffs. It also promised retaliatory measures to protect its own interests in response to Trump’s tariffs against all U.S. global trading partners. The reciprocal tariffs sent shockwaves throughout today's stock and futures markets. The people are on edge as they anticipate what retaliatory duties other countries may levy. The specter of a escalating war on trade is the dominant force in the market," said a metals trader. Other metals include LME aluminium, which fell 1.2%, to $2460 per ton. Lead also dropped 0.7%, to $1955, while zinc fell 1.2%, to $2746, tin declined 3.0%, to $36,800, and nickel decreased 0.9%, to $15,825 per ton. Lead fell by 1.1%, to 17,155 Yuan. Nickel fell by 1.5%, to 127.380 Yuan. Tin fell 1.7%, to 288,640 Yuan.
-
NYK, Partners to Develop Renewable Energy-Powered Floating Data Center
NYK Line, NTT FACIITIES, Eurus Energy Holdings Corporation, MUFG Bank, and the city of Yokohama have signed a memorandum of understanding (MoU) for a demonstration project of an offshore green data center, utilizing a mini-float installed as a disaster countermeasure.On a mini-float, spanning 25 meters in length and 80 meters in width, installed off Osanbashi Pier in Yokohama City, the partners will test an offshore floating data center fully powered by renewable energy generated by solar power and battery energy storage systems.Based on the results, the partners will explore further developments in the waterfront and sea areas of Yokohama port.The demonstration project will involve installing a container-type data center, solar power generation equipment, and battery energy storage systems on a mini-float.The project aims to operate the data center entirely on renewable energy while assessing the equipment's salt damage resistance and operational stability in an offshore environment. The demonstration is planned to start in autumn 2025.“We expect the offshore floating green data center, which operates on 100% renewable energy, will become one of the new standards for future data centers and greatly contribute to the realization of a carbon-neutral society by operatiImage of Demonstration Project (Credit: NYK Line)ng entirely on renewable energy and emitting no greenhouse gases during operation. Through the demonstration, we will work to address various challenges to achieve this vision,” the partners said.Once realized, offshore floating green data centers will enable efficient utilization of offshore wind power, a promising renewable energy source.The project envisions situating these data centers near offshore wind farms to maximize the use of generated electricity without relying on or being limited by onshore power grids.Additionally, the approach is expected to address various challenges associated with onshore data center construction, such as land availability, shortages of construction contractors, and extended construction lead times.By utilizing renewable energy, leveraging Japan's vast maritime domain, and enhancing port functions necessary for constructing and maintaining offshore facilities, the project aims to contribute to both environmental preservation and the growth of digital infrastructure.
China desires EU to scrap EV tariff plans as talks begin
Beijing wants the EU to scrap strategies to enforce preliminary tariffs on Chinese electric vehicle imports by July 4, China's statecontrolled Global Times reported, after both sides consented to negotiate a possible compromise.
Provisional European Union duties of as much as 38.1% on imported Chinese-made EVs are set to kick in by July 4 while the bloc examines what it says are extreme and unjust aids.
The European Commission stated it would host technical talks with Chinese authorities in Brussels this week.
The EU side has stressed that any negotiated outcome of the investigation should be effective in attending to the adverse subsidisation, a Commission spokesperson stated.
German Chancellor Olaf Scholz said there required to be major movement and development from China too.
China has consistently called on the EU to cancel its tariffs, expressing a determination to work out. Beijing does not want to be embroiled in another tariff war, still stung by U.S. tariffs on its goods imposed by the Trump administration, but says it would take all steps to safeguard Chinese firms must one happen.
China's Global Times, mentioning observers, stated the very best outcome would be for the EU to ditch its tariff plans before July 4.
Analysts and European trade lobby groups worried that China would need to come to settlements ready to make significant concessions.
Alicia Garcia Herrero, senior fellow at Bruegel, an prominent EU affairs believe tank, questioned the planned curbs could be dropped before elections in France on June 30 and July 7.
The Commission can't alter a decision it has been considering for months on months on months, she included. Yes,. China is putting pressure on the member states, but they would. need to vote with a qualified bulk against the Commission.
The European Commission is set to make a decision on. tariffs by Nov. 2 at the end of the anti-subsidy examination.
The Chinese commerce ministry did not right away react to. a request for comment.
TALKS ARE A 'GOOD INDICATION'
Siegfried Russwurm, head of Germany's most significant industry. association BDI, stated it was a good indication both sides would hold. talks.
You know the old saying: as long as there are talks you're. not shooting at each other, he informed German public broadcaster. Deutschlandfunk.
Russwurm, who likewise acts as chairman for German. corporation and car provider Thyssenkrupp, stated. tariffs were the last thing Germany required as a significant exporting. country.
At the same time, Brussels' transfer to apply tariffs of differing. degrees suggested a thorough analysis had actually happened and that. this was not an effort that targeted the whole Chinese automobile. sector in equal measure.
Meantime, Maximilian Butek, executive director at the German. Chamber of Commerce in China, stated there was zero opportunity the. preliminary tariffs would be eliminated by July 4 unless China. removed all the problems flagged by the European Commission.
EU trade policy has turned progressively protective over. concerns that China's production-focused advancement design could. see it flooded with inexpensive goods as Chinese firms aim to step up. exports amid weak domestic need.
China has turned down allegations of unreasonable aids or that. it has an overcapacity problem, saying the development of its EV. market has actually been the outcome of advantages in technology, market. and industry supply chains.
When European Commission President Von der Leyen revealed. she would investigate China's brand-new energy cars ... I had an. user-friendly feeling it was not only a financial concern but also a. geopolitical problem, stated Zhang Yansheng, primary research study fellow. at the China Center for International Economic Exchanges.
ARMED AND PREPARED
Although requiring talks, Beijing has likewise shown it. has retaliatory procedures ready if the EU does not pull back, and. that it considers Brussels completely responsible for the intensifying. stress.
China has actually opened an anti-dumping investigation into EU pork. imports. The Global Times stated China was likewise teeing up an. anti-subsidy investigation into European dairy products and tariffs. on large-engined gas cars and trucks.
Chinese authorities have dropped tips about possible. vindictive steps through state media commentaries and. interviews with market figures.
It appears probable that Beijing will raise tariffs as much as 25%. for Europe-made cars and trucks with 2.5 or above litre engines, stated. Jacob Gunter, lead expert at Berlin-based China research studies. institute MERICS.
Pork and dairy are currently on the table for Beijing, and. likely more farming products will be threatened, he added.
On the EU side, there are a variety of ongoing. investigations ... so we should anticipate some sort of steps. targeting distortions on (Chinese) products varying from medical. gadgets to airport security scanners to steel pipes.
(source: Reuters)