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US talks to Pakistan about tariffs, minerals and immigration
The State Department and Pakistani foreign ministry released separate statements confirming that U.S. secretary of state Marco Rubio had spoken to Pakistani Foreign minister Ishaq dar on Monday. They discussed tariffs, trade relationships, immigration, and the prospects for engagement in relation to critical minerals. Last week, President Donald Trump announced that he will impose a baseline 10% tariff on all imports into the U.S., and even higher duties on other countries. This includes some of Washington's largest trading partners. The announcement rattled global markets, and confused U.S. ally. The Trump administration imposed 29% on Pakistan. The State Department reported that "they (Rubio, and Dar) discussed U.S. bilateral tariffs against Pakistan and how to progress towards a fair and equal trade relationship." The Secretary expressed his interest in increasing commercial opportunities for U.S. companies." The Pakistani Foreign Ministry said that Rubio "recognised the desire to collaborate in trade and investments with Pakistan, particularly critical minerals". The Trump administration also uses the prospect of engagement with other countries over critical minerals. As an example, the US is trying to reach a deal with Ukraine over vital minerals as part of discussions related to Russia-Ukraine War. Washington said that it was open to exploring partnerships for critical minerals with Congo, and helping end the conflict in the east of this African country. The State Department reported that Rubio stressed the importance of Pakistani cooperation with the U.S. in law enforcement, and the fight against illegal immigration. Last month, Pakistan highlighted their cooperation with Washington in countering extremism following the arrest of Mohammad Sharifullah. The U.S. has blamed him for an attack 2021 on its troops at Kabul Airport, during a military operation on the border with Afghanistan. The Pakistani foreign ministry confirmed that Rubio and Dar had discussed the Afghan situation. Reporting by Kanishka Sing in Washington, edited by Alistair Bell
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Chile's Codelco increases copper production, Chairman bullish despite trade conflict
Codelco, Chile’s state-owned copper manufacturer, increased production in the first quarter of 2025. Trade war escalates Maximo Pacheco, chairman of the board, said that there is a growing relationship between China and the U.S. The world's largest copper producer recorded slightly higher production in the first quarter than the same period of 2024. It is also maintaining its production guidance, even after a nationwide power outage in Februrary crimped the output. In an interview given ahead of the CESCO/CRU conferences on the copper industry in Santiago, Pacheco stated that "we will have a quarter which will be slightly better than the first of last year." Codelco aims to produce between 1.37 and 1.4 millions tons of copper in this year. This will be the second year that production has increased after a 25-year low was reached in 2023. Pacheco said that he was confident in the long-term demand for copper due to the need of global energy transformation, despite the short-term volatility on commodities markets after the sweeping tariffs implemented by U.S. president Donald Trump. Pacheco stated, "I'm convinced that long-term fundamentals remain very strong and difficult to change." "I understand the nervousness of the markets and people who are experiencing this turbulence. But we operate on a different circuit," Pacheco said. Codelco is trying to remain flexible as global demands fluctuate, he said. Last week, the company said that it was sending more spot sales into the U.S. as buyers were stockpiling copper in anticipation of possible tariffs. He said, "We must have a flexible and diversified vision with a good service for our clients." Codelco also wants to strengthen its ties with India following a recent visit by President Gabriel Boric and an agreement with Adani Group. Pacheco stated that "we will continue to grow our business in India". Pacheco said that the company has also been in contact with Saudi Arabia. The country is very interested in lithium and copper, which are both essential for electric vehicle manufacturing. They have a great deal of interest within Chile and in Codelco. Codelco lost 5,000-7,000 tons of production due to the blackout that lasted several hours in Chile during February. However, the miner recovered the loss, according to the official. He said: "It does not mean the production will be lower than last year." (Reporting and editing by David Gregorio, Fabian Cambero, Daina Beth Solon)
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Trump's trade tariffs and threats
The global trade war, started by U.S. president Donald Trump, has intensified this month, after he announced tariffs on the majority of U.S. imported goods. This sparked fears of a global recession, sent jitters through global financial markets, and drew condemnation from world leaders. Trump announced his plans to increase "reciprocal duties" on several of the United States' largest trading partners on April 2, which he called "Liberation Day." Tariffs of 10% were in effect from April 5 to 9, while higher reciprocal rates would be implemented on April 9. The new U.S. trade barriers are the highest in over a century. Trump's tariff threat has changed over the years, and other nations and businesses are unsure of what will happen next. This has roiled consumer and business confidence. Here's a summary of Trump’s threats and actions in relation to trade. BROAD TARIFFS Trump's vision is based on a gradual rollout of tariffs that will apply to all U.S. imported goods. Trump's economic team was tasked with developing plans to impose reciprocal tariffs against every country that taxes U.S. Imports. They were also tasked with removing non-tariff barriers, such as vehicle safety regulations that exclude U.S. automobiles and value added taxes that raise their price. Trump said that the reciprocal tariffs were a response to the barriers placed on U.S. products. Administration officials, however, stated that the tariffs will create manufacturing jobs in the United States and open export markets abroad. In recent decades, tariffs have been reduced to a small fraction of U.S. taxes. Economists claim that Trump's policies are inflationary, as businesses who import goods and pay tariffs will pass on the additional costs to consumers. Specific COUNTRIES Trump's tariff proposal targets several key trading partners. MEXICO AND CANADA : Mexico and Canada were the two largest trading partners of the U.S. from 2024 to November. Trump's new tariffs of 25% on imports from Mexico, Canada and the European Union took effect on 4 March as a response to migration and fentanyl. Tariffs were imposed on energy imports from Canada and Mexico, as well as on the majority of goods imported. Canada exports mainly crude oil, other energy products and cars and auto components within the North American automotive manufacturing chain. Mexico exports a variety of goods to the U.S., including industrial and automotive products. Canada retaliated with a 25% tariff on C$30 billion (21,13 billion dollars) of U.S. imported goods, including oranges juice, peanuts butter, beer and coffee, as well as appliances, motorcycles, and appliances. The Canadian government said that it will impose additional duties on C$125billion of U.S. products if Trump's Tariffs are still in effect in 21 days. This could include vehicles, aircraft, steel, beef, and pork. U.S. commerce secretary Howard Lutnick stated that U.S. officials could still work out a partial solution with the two neighboring countries, and added that they need to do more in the fentanyl arena. Canada, which is the largest foreign supplier of aluminum and steel to the United States (C$29.8billion), announced on March 12 that it would impose retaliatory duties on U.S. imports worth C$29.8billion ($20billion) as a response to Trump’s steel and aluminium tariffs. The two countries are exempted from the "Liberation Day", announced on April 2 tariffs, but they face a separate 25% tariff on auto imports. Canada has asked the WTO to consult with the U.S. about its import duties on steel and aluminum products as well as levies placed on Canadian cars and parts. CHINA: Trump imposed 10% tariffs on all Chinese imports to the U.S. effective February 4, after repeatedly warning Beijing that it was not doing enough to stop the flow of illegal drugs into the U.S. On March 4, he imposed another 10% tariff on Chinese products. China announced additional tariffs between 10% and 15% on some U.S. exports starting March 10, as well as a number of new restrictions for certain U.S. entities. It then complained to the WTO about the U.S. Tariffs. Trump increased the tariffs on China by 34% in April, making the total to 54%. China responded with a 34% duty on all U.S. products. Trump replied that if Beijing did not remove its retaliatory duties on the U.S. he would impose a 50% additional tariff. He also said, "all discussions with China regarding their requested meetings will be terminated." Trump has said that the EU, and other countries, have alarming trade surpluses against the U.S. He said that the products of the other countries will be subject to tariffs, or he would demand they purchase more oil and natural gas from the U.S. Steel, aluminum and cars will be subject to import tariffs of 25%, while other goods will face tariffs of up to 20%, starting April 9. Pharmaceuticals are among the most vulnerable industries, since U.S. companies such as Johnson & Johnson, Pfizer, and others have large facilities in Ireland. Ireland is a major exporter for medical devices. The European Union announced on April 7 that it had offered to offer a "zero for zero" tariff deal in order to avoid a trade conflict. EU ministers agreed to give priority to negotiations, while retaliating with targeted countermeasures the following week. In response to Trump's metals duties, the EU announced on March 12 that it would begin imposing counter-tariffs next month on goods worth 26 billion euros (28 billion dollars) from the United States. As a result of the U.S. auto and wider tariffs, the EU is expected to release a more comprehensive package of countermeasures at the end of April. Trump announced on March 13 that he would impose a tariff of 200% on European wines and spirits as a response to EU plans to levy tariffs on American whisky and other products in the next month. PRODUCTS AUTOS: Trump announced a 25% tariff for imported cars and light truck on March 26. The 25% tax would be added to previous duties on imported finished vehicles beginning on April 3. Trump's directive includes temporary exemptions for auto components that comply with the U.S. Mexico Canada Agreement (USMCA), a trade agreement that Trump negotiated in his first term. The tariffs will apply to other major imports of automotive parts. These are identified by Trump as "engines, engine parts, transmissions, powertrain components, and electrical component" and they will be imposed on a specific date, which is to be announced in the Federal Register, but no later than "May 3, 2025". Metals: On March 12th, Trump raised tariffs for all imports of steel and aluminum to 25% and extended duties to hundreds downstream products. These include everything from nuts and bolts, to bulldozers blades, to soda cans. More than half of the U.S.'s aluminum and steel imports come from Canada, Mexico, and Brazil. Trump ordered on February 25, a new investigation into the possibility of new tariffs on imports of copper to rebuild U.S. manufacturing of this metal, which is critical for electric vehicles, military equipment, semiconductors, and a variety of consumer goods. Just over half of the refined copper that America consumes every year is produced domestically. SEMICONDUCTORS : Trump stated that tariffs would start at "25% or higher" and increase substantially over the course a year. He did not specify when they will be implemented. Taiwan Semiconductor Manufacturing Co., the largest contract chipmaker in the world, produces semiconductors for Nvidia and Apple, among other U.S. customers. In 2024, it will generate 70% of its revenues from North American clients. LUMBER: On March 1, Trump ordered a new investigation into trade that could add more tariffs to imported lumber. This would be in addition to the existing duties on Canadian Softwood Lumber and 25% tariffs for all Canadian and Mexican products. ALCOHOL: Trump threatened on March 13 to slap 200% tariffs on wine, cognac, and other alcohol imported from Europe in response to an EU plan to impose tariffs next month on American whiskey, and other products -- which is itself a retaliation for Trump's 25% tariffs imposed on steel and aluminium imports the day before. PHARMACEUTICALS - While Trump's "Liberation Day' announcement spared the pharmaceutical sector from reciprocal duties, he later stated that the tariffs were "under review." He warned that the level of the tariffs could be "at a new high that you've never seen before." ($1 = 1.4197 Canadian dollars)
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Studies find that Chile has 28 percent more lithium than previously estimated
ENAMI, the state-owned mining company, said that new studies on salt flats found in northern Antofagasta showed a greater amount of lithium. ENAMI reports that a new analysis has revealed that the La Isla flat salt contains 2.13 million metric tonnes of lithium. This is an increase of 150% over the previous estimate. The Aguilar flat salt holds just below 1 million tons, a 40% increase. ENAMI reported that together, the two companies add 3,05 million tons to Chile's lithium resources. The U.S. Geological Survey estimated 11 million tons. Reserves refer to the amount of mineral deposits that can be mined realistically and economically. USGS reports that Chile has the third largest lithium reserves in the world, behind Bolivia and Argentina. However, it is ranked No. With 9.3 million tonnes, Chile is the world's No. 1 lithium reserve holder. Chile is the world's second largest lithium producer, and its Atacama flat provides output to U.S.-based Albemarle as well as state-run SQM. ENAMI will select a partner in May to mine together the two salt plains that were studied as part the Salares Altoandinos Project, one of the first state ventures into lithium. ENAMI received proposals from the Chinese automaker BYD, as well as miner Eramet Posco and Rio Tinto. CNGR Advanced Materials Co and LG Energy have both expressed interest in providing financing. The new data on resources are based on an analysis by external consultants who use ENAMI’s exploration numbers. Ivan Mlynarz, the head of ENAMI, said: "This confirms Salares Altoandinos as a world class project."
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Document shows EU Commission's proposal to impose 25% counter-tariffs for certain US imports
A document obtained by revealed that the European Commission had proposed 25% counter-tariffs on a variety of U.S. products in response to President Donald Trump’s tariffs on aluminum and steel. Document states that some tariffs will be in effect on May 16, and others on December 1. There are many goods that can be imported, including diamonds, dental floss and sausages. The counter-tariffs for almonds and soyabeans will come into effect on 1 December. Maros Séfcovic, the EU Trade chief, said on Monday that the counter-tariffs will have a lesser impact than the 26 billion euro ($28.45billion) previously announced. Bourbon, dairy and wine have been removed from an original list that the Commission was considering in March. The Commission had set a tariff of 50% on bourbon. This prompted Trump's threat to impose a counter-tariff of 200% on EU alcoholic beverages if the EU went ahead. Trump's threats worried France and Italy, in particular, due to their important wine industries. The EU has already increased the protections for steel imports to 15% on April 1, in addition to these anti-tariffs. The Commission is looking into import quotas of aluminium. The EU member states will vote on the proposal on April 9th. The current exchange rate is $1 = 0.9139 euro (Reporting and editing by Tomasz Janowski and Chizu Nimiyama).
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Mexico tries to avoid tariff retaliation against the US but does not rule them out
The Mexican president Claudia Sheinbaum stated on Monday that her government would prefer to avoid imposing tariffs against the United States as a response to President Donald Trump’s tariff plans. However, she did not rule them out. Sheinbaum called it a great success that Mexico, which exports nearly 80% of all its goods to the United States was not on Trump's list last week of tariffs across the board. Mexico still faces the 25% tariffs that Trump imposed on steel, aluminium, and automobiles as well as goods that don't comply with regional USMCA trade agreement. Sheinbaum stated in a press conference that Sheinbaum would prefer to avoid reciprocal tariffs as much as possible. She said that the Economy Minister Marcelo Ebrard will travel to Washington, D.C. to meet with U.S. government officials as he did in recent weeks. Sheinbaum stated that a 25% retaliatory duty on U.S. aluminum and steel shipments would "represent price increases in Mexico." She added, "We don't rule it out but prefer to continue the dialogue." Mexican officials said that U.S. tariffs on steel and aluminum are not justified, as Mexico imports in this sector more from the U.S. The peso, and the main stock index of the country, had fallen more than 1% at mid-morning Monday. This was part of an overall market decline as Trump threatened further tariffs against China. (Reporting and editing by Anthony Esposito, Rod Nickel and Kylie Madry)
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South Sudan: US visas revoked due to refusal of entry to non citizen
South Sudan stated on Monday that the U.S. decided to revoke visas for South Sudanese nationals because Juba refused to accept a deportee of another nationality. The U.S. announced on Saturday that it will cancel all visas for South Sudanese passport-holders because South Sudan has refused to accept its repatriated citizen's return. Juba's Foreign Ministry said that the deportee from the Democratic Republic of Congo was denied entry to South Sudan by South Sudanese officials. He claimed in an interview with immigration at the Juba Airport that he had been forced there. "Comprehensive Verification Processes confirmed that this individual was a citizen of the Democratic Republic of Congo." According to immigration protocols, the individual was not allowed entry and returned to his sending country for further treatment. The Government regrets the fact that, despite a long history of collaboration and partnerships, South Sudan is now facing a widespread revocation of its visas due to an isolated incident in which a person who was not South Sudanese misrepresented himself. The Trump administration in the United States has taken aggressive steps to increase immigration enforcement. This includes repatriating people who are deemed to have entered the U.S. unlawfully. Last week, African Union mediators visited South Sudan to hold talks aimed at preventing a civil war after the First Vice-President Riek Machar had been placed under house arrest. South Sudan's President Salva Kiir has accused Machar of stirring up a new revolt. Machar was a long-time rival and led rebel forces in a war from 2013 to 2018 that resulted in the deaths of hundreds of thousands. (Reporting, Writing and Editing by George Obulutsa)
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Stocks continue to fall; Trump threatens more tariffs on China if they don't back down
The dollar and bond yields increased on Monday, as major stock indexes continued to fall in volatile trading. U.S. president Donald Trump announced that he would impose an extra 50% tariff on China should Beijing not remove its retaliatory duties on the United States. The White House also denied a report saying that Trump was considering a 90 day pause on tariffs for all nations except China. The White House called the report "fake" news, but it briefly boosted U.S. stock prices. The markets were volatile amid changing headlines and U.S. stock prices remained far from their day's lows. You can tell that shorts are tense today. They're watching every turn for any possible Fed intervention, tariff suspension, or trade agreement. This shows how short-lived the current market turmoil is expected to be, said Jamie Cox of Harris Financial Group, Richmond, Virginia. The traders bet that the recession would increase. Federal Reserve Interest rates could be cut as early as May. Futures markets have already priced in nearly five quarter-point reductions in U.S. interest rates this year. Stocks plunged at the start of the day, and S&P 500 was on track to confirm the bear market as Trump showed no signs of backing down from his tariff plans. The stock market dropped sharply after the announcement of tariffs. The Dow Jones Industrial Average dropped 629.33, or 1.6%, to 37.685.53, while the S&P 500 fell 56.14, or 1.14% to 5,016.43, and the Nasdaq Composite declined 129.97, or 0.8%, at 15,450.15. The MSCI index of global stocks fell by 23.61 points or 3.09% to 740.68. Investors were also forced to sell, and the pain spread to European stocks. Recent market darlings like defense shares were particularly affected. The pan-European STOXX 600 fell by 4.54%. The Hang Seng index in Hong Kong fell 13% on a single day, the biggest drop since 1997. In mainland China, the blue-chip CSI 300 was down 7%. It only found a bottom when the state media announced that China's sovereign funds Central Huijin were buyers. Treasury yields increased. Benchmark 10-year notes yields rose 12.8 basis points in the last hour to 4.119%. On Friday, they fell to 3.86%, their lowest level since October 4. The yields on two-year interest-sensitive bonds rose by 2.9 basis points, to 3.699%. Earlier, they had reached 3.435% - the lowest level since September 2022. Dollar also rose, and oil prices fell due to a more gloomy outlook for growth. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and others) rose by 0.81%, while the euro fell by 0.37%, at $1.0914. The dollar gained 0.69% against the Japanese yen to reach 147.92. U.S. crude dropped 1.84%, to $60.84 per barrel. Brent was down to $64.41 a barrel on the same day.
OPEC March crude oil production falls on Venezuela and Iran amid sanctions
A survey revealed that OPEC's oil production fell in March, ahead of a planned increase, as Nigeria cut deliveries to its domestic refineries, and Iranian and Venezuelan supplies dropped due to renewed U.S. efforts to reduce the flow.
According to a survey released on Monday, the Organization of the Petroleum Exporting Countries (OPEC) pumped 26,63 million barrels of oil per day in February, a decrease of 110,000 bpd compared to the total for the month of February. The largest declines were recorded by Nigeria, Iran, and Venezuela.
OPEC+, a grouping of OPEC, its allies, and Russia, has begun to unwind the most recent cuts in output. The extent of the increase will partly depend on how President Donald Trump's attempts to restrict supply from Iran and Venezuela affect the price.
The survey revealed that in March, Nigeria, Iran, and Venezuela each saw their supply fall by 50,000 bpd.
The survey concluded that Nigerian exports were higher than expected, but the supply decreased due to lower deliveries to the Dangote Refinery. According to the survey Nigeria is slightly pumping above its OPEC+ targets, with Gabon being the least compliant.
Surveys show that the Iranian oil production fell in February from its previous high of September, which was also the highest level since 2018. The slight drop in output comes at a time when the U.S., under Trump, is redoubling its efforts to pressure Iran's oil imports.
The survey also found that Venezuela, which was similarly affected by U.S. actions, saw a decline in exports in December, due to Washington's secondary tariffs, and the cancellation of energy licenses.
The survey showed that output in Saudi Arabia and Iraq, two of OPEC's biggest producers, increased slightly. Both nations are pumping lower than their OPEC+ target. The output in the United Arab Emirates met its target.
The OPEC secondary sources' survey and data from February show that the UAE and Iraq pump close to their quotas. However, other estimates such as the International Energy Agency suggest they pump significantly more.
The survey revealed that there was no increase in production last month.
The survey aims at tracking supply on the market. It is based upon data provided by LSEG (a financial group), information from companies that track flow, such as Kpler and information provided from sources within oil companies, OPEC, and consultants. (Additional reporting and editing by Emelia Sithole Matarise)
(source: Reuters)