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Ford CEO meets with legislators after raising concerns over tariffs
Jim Farley, the CEO of Ford Motor Company, met with U.S. legislators on Wednesday. He had expressed concerns earlier this week that tariffs of 25% on Mexico and Canada could "blow a gap" in the U.S. automotive industry. Farley met Senators Roger Marshall and Elissa slotkin, Deb Fisher and many House of Representatives members after warning that tariffs imposed by President Donald Trump could be devastating for rival automakers and would benefit them. Democrats have taken Farley's remarks about tariffs to heart. Michigan Democratic Party said that Farley's comments showed "Trump's Tariffs are not a risk Michigan could afford." Senate Democratic Leader Chuck Schumer stated they proved Trump's Tariffs can lead to higher inflation. The White House has not yet commented. Farley stated in a press release that the automaker shares Trump’s vision of a vibrant U.S. automotive industry. The automaker looks forward to “continuing the dialog with the administration and legislators about how to best achieve this vision.” He said if Trump succeeds, it could be his greatest accomplishment. Trump raised the tariffs on imports of steel and aluminum to 25%, "without any exceptions or exclusions", effective Monday. Trump increased tariffs by 10% on Chinese imports last week and is now preparing to announce reciprocal tariffs against all countries that impose duties on U.S. goods. Trump had threatened to impose 25% tariffs on all imports coming from America's largest trading partners Canada and Mexico. He said they needed to do more to stop the flow of migrants and drugs across the U.S.-Mexico border. Trump suspended the tariffs on March 1 after making some concessions in border security. Farley, speaking at the Wolfe Research Conference on Tuesday, said: "What we are seeing is a great deal of cost and chaos." "If you take a look at the tari's, be honest with yourself, over time, a 25 percent tari's not going to make a difference." The border between Mexico and Canada will cause a huge hole in our industry, one that has never been seen before. He warned Tuesday that the revocation of incentives for electric cars by Congress could threaten jobs after Ford invested heavily in battery production, as well as assembly plants, in Ohio, Michigan and Kentucky. On Wednesday, Republican lawmakers introduced two bills to repeal EV tax credits as well as impose a tax of $1,000 on new electric vehicles to fund road repairs. (Reporting and editing by Sandra Maler, Muralikumar Aantharaman and David Shepardson)
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Oil drops as a potential Ukraine peace agreement may ease supply disruptions
Oil prices fell Thursday as a result of expectations that a possible peace deal between Ukraine, Russia and the EU would end sanctions which have disrupted supplies. Also, President Donald Trump’s plan to introduce reciprocal tariffs has stoked inflation fears. Brent futures fell 55 cents or 0.73% to $74.63 per barrel at 0141 GMT, while U.S. West Texas Intermediate crude (WTI), dropped 52 cents or 0.73% to $70.85. Brent and WTI both fell by more than 2% after Trump claimed that Russian President Vladimir Putin, Ukrainian President Volodymyr Zelenskiy and other officials had expressed their desire for peace to him in separate telephone calls. Trump also ordered the top U.S. official to start talks about ending the conflict in Ukraine. The price of oil has risen because Russia is the third largest oil producer in the world. Sanctions imposed by the United States on Russia's crude exports following its invasion of Ukraine almost three years ago have also supported prices. In a note published on Thursday, analysts at ANZ stated that oil prices had eased following the news of potential peace talks due to "optimism" about risks to crude supply. Analysts at ANZ pointed out that sanctions imposed by the U.S., EU and other countries have pushed down Russia's production. In recent weeks, "signs of tightening supplies have pushed up oil prices." The U.S. sanctions against Russian oil companies, vessels and their assets are said to be a factor in the current situation. Trump's threat to impose additional tariffs on U.S. trading partners also pushed prices up because of fears that this could reduce economic growth, and therefore oil consumption. Trump announced that he would begin imposing reciprocal tariffs on Wednesday night on all countries that charge duties on U.S. imported goods. This move has heightened fears of an expanding global trade war, and could accelerate U.S. inflation. The market was also affected by the increase in crude oil stocks in the U.S. The Energy Information Administration (EIA), which released data on Wednesday, showed that U.S. crude oil stocks increased more than expected in the past week. The EIA reported that crude inventories increased by 4.1 millions barrels, to 427.9million barrels for the week ending Feb. 7. This was compared to analysts' expectations in an analyst poll of a 3-million-barrel increase. (Reporting and editing by Christian Schmollinger in Houston. Reporting by Georgina Mccartney, Houston)
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Australia's trade minister said that the US has approved of Australia's increased aluminium exports.
Don Farrell, Australia's Trade Minister, said that the U.S. had approved the increase in aluminium supplies to Australia. This was a response to Canberra's application for exemption from U.S. steel and aluminium tariffs. Donald Trump, the U.S. president, said this week that he was considering an exemption for Australia to a 25% flat tariff on imports of steel and aluminum. However one of his closest advisors claimed Australia "killed our aluminum market". The executive order imposing the tariffs stated that the volume of aluminum from Australia had risen after Trump granted it a tariff exemption in 2018. This was despite the fact that the country ignored a verbal agreement to limit aluminium supply. Farrell claimed that Australia increased its aluminum exports after the supply interruptions caused by Russia's ongoing conflict with Ukraine, with the blessings of the former administration of President Joe Biden. "All that was done in full knowledge of the American Government." "We haven't ever done anything the American government was not comfortable with," he told ABC in an interview. The center-left Labor Government of Anthony Albanese, Prime Minister, is facing national elections due in May. They recently announced a A$2 Billion ($1.26 Billion) plan to assist aluminium smelters to transition to renewable electricity. The initiative is designed to protect up to 75,000 direct jobs and indirect ones. Australia is the sixth largest producer of aluminium in the world. Its aluminium exports to the U.S. accounted for only 2% of the total. (1 Australian dollar = 1.5918 dollars) (Reporting and editing by Sonali Paul in Sydney, Alasdair Needham and Kirsty Neetham)
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Andy Home: Tariff threat creates rift between copper prices in the US and Europe
The market has already priced in the possibility that after steel and aluminium, the red metal could be the next to receive import tariffs. In recent days, the arbitrage between CME and London Metal Exchange (LME), has become more pronounced. The CME premium exceeded $1,000 per metric tonne earlier in the week. The market expects a minimum 10% tariff based on the current price of LME 3-month copper, which is currently around $9,400 a ton. CME premiums could rise further if Trump imposes the same 25% tariffs on imports of aluminum and steel. Doctor Copper's likely reaction to a escalating trade war and its negative impact on global growth is being overlooked. Mind the Widening Gap The CME’s U.S. Midwest Premium Contract is where the aluminium trade takes place, because the CME’s underlying contract for aluminium mirrors the LME’s international delivery status. CME copper contracts, on the other hand, are customs cleared and only have domestic delivery locations. This means that any premium associated with U.S. deliveries must be reflected in this contract. The CME premium is a good indicator of potential U.S. copper tariffs. Right now, it's trading at record-highs. It even surpasses last year’s short squeeze explosion. CME's copper stock has recovered from its depleted level that fueled the squeeze, and now totals over 100,000 tonnes. The U.S. Geological Survey reports that the U.S. consumer is highly vulnerable to tariff barriers, as the country still relies on imports to meet around 45% domestic consumption. Trump's tariff threat is affecting prices, but it is not yet clear what tariffs will be applied or against which countries. The announcement of tariffs on aluminum and the possibility of even higher duties if trading partners retaliate has spooked copper markets, forcing arbitrage to become more widespread. DAMAGE IMPACT According to the USGS, the immediate focus of the trade in copper tariffs is on refined metal. This is understandable, given that the United States only imported just under 800,000 tonnes of this product in 2024 compared to its own production of 850,000, tons. The CME premium, which is currently a major incentive for metals to be shipped to the United States, will adjust the trade flow over time. Tariffs on copper could have a much more complicated impact, due to the complex flow of materials between the United States, Canada and Mexico, which both face 25% tariffs. Copper wire is exported by the United States to Mexico for use in automotive parts, such as electric motors and wiring harnesses. These are then sent back across the border. Analysts at Project Blue estimate that this trade represents 220,000 tons of copper per year. If high tariffs are imposed on these imports, harness assembly will likely move from Mexico to cheaper Asian countries. This would have negative effects on both Mexican and U.S. automotive companies. Tariffs may cause copper scrap flows to be diverted to other countries - most likely China - at the expense of U.S. secondary manufacturing. TARIFF DRAG The interconnectedness between North American copper flows and the globalised picture is only part of the bigger, complex globalised picture. This leaves the metal vulnerable to any shifts in trading patterns that may result from U.S. Tariffs. Doctor Copper is a title that has been given to the metal because of its importance in the global economy. The possibility of tit-fortat tariffs being imposed between the United States, and its trading partners, could have a significant impact on consumer spending. The market hasn't yet priced this in. The LME copper has increased by 7% in price since January 1, fueled by the expectation of an improved demand, especially in China. China, along with everyone else, is in the sights of the Trump administration. Copper will be affected by the tariff wars if they have started. This will reflect in the international prices rather than U.S. prices, suggesting a further fracture between CME-LME markets. These are the opinions of the columnist, an author for.
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Global Lithium Australia management resigns before AGM
Global Lithium Resources, an Australian company, announced on Thursday that two of its three directors had resigned ahead of a shareholder meeting scheduled for later that day. The shareholders' meeting was to be held in order to strip the directors of their control over the company and the cornerstone asset. Matthew Allen, former chief financial officers and director, withdrew his nomination to be elected as a nonexecutive board member ahead of the shareholders' vote. The management had claimed that Dianmin Chen, a non-executive Director of Manna Lithium Project in Western Australia, was working with foreign investors who held between 30 and 40 percent of shares. Mitchell claimed that an unreported association between shareholders could violate Australia's Takeover Laws and the Foreign Takeovers Act. The accusations were made in reports to Australia's Treasury, to the Western Australian Supreme Court and to the Australian Securities Exchange. The Takeovers Panel refused to review the company’s request for finding of unacceptable circumstance, saying that last week evidence pointed towards "shareholder pressure" rather than combining to take control. The company announced that Chen would act as the chairman of the annual meeting, and that he intended to vote for his reelection as well as the appointment of Liaoliang Zhu (Leon) as a director. In a letter sent to shareholders, Zhu (a Chinese-born property developer) who controls Sincerity Group – Global Lithium’s third largest shareholder – had asked to join the board, citing excessive spending and a management pivot away from lithium.
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South32's profit for the first half of the year is boosted by strong aluminium and copper sales
South32, a diversified Australian miner, reported a nine-fold increase in its first-half profits on Thursday. This was due to higher sales of aluminium and copper and high commodity prices. The shares of the company grew 2.3% early in trading, compared to a rise of 1.1% in the sub-index for miners. A rise in the price of aluminium, fueled by a tightened alumina supply and market, has led to a $160 million increase in the operating profit for the aluminium division. The copper division's earnings also increased by $98 millions, thanks to higher prices and lower labor costs. South32, world's largest manganese producer said that its earnings underlying for the six-month period ended December 31, were $375 millions, up from the $40 million reported a year earlier. Visible Alpha's consensus estimate was $370.1million. The Perth-based company, which split from BHP Group last year, announced an interim dividend per share of 3.4 cents, up from 0.4 cents a year ago. South32 has re-established its production forecasts at its Mozal Aluminium Smelter for fiscal 2026 and reduced them slightly for this year. The forecasts were withdrawn in December following civil unrest. The company increased its forecast of unit operating costs for the full year at its Worsley Alumina Project in Western Australia by 5 percent. Citi analysts called the results "solid", however, they said that the cost pressures on the miner are still apparent. South32 has also reduced its capital expenditure forecast for the full year, excluding exploration costs and intangibles by approximately $105 million.
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Miner Vale will invest $12 billion in expanding Carajas, the Brazilian government has said
The Brazilian miner Vale announced on Wednesday that it would announce a 70 billion real investment ($12.2 billion), on Friday, to expand its copper and iron ore mining operations in the Carajas Complex located in the north of Brazil. The presidential palace announced that the investments would be completed by 2030. It added that the announcement would be made during an event attended by Brazilian President Luiz inacio Lula Da Silva and his cabinet. Vale, the world's largest iron ore producer, didn't immediately respond to an inquiry for comment. Carajas is Vale's biggest iron ore production facility, located in Brazil's Para state. It contributed 177.5 million metric tonnes last year or more than half the total output of steel ingredients in the period. Has faced criticism Lula or cabinet members have said this in the past. Lula's mining ministry complained last year about the lack of investment by the company in Brazil, and delays with a deal to repair a dam that collapsed in 2015. In October, an agreement was finally reached. Vale Chief Executive Gustavo Pimenta met with Lula for the first time last month. According to Vale, Pimenta highlighted the "enormous alignment" between Vale projects and the development agenda of the country. The Brazilian presidential palace confirmed that Vale would present its "New Carajas project" at the event, but did not provide any further details. Vale produces nickel and copper in Para at its Sossego and Onca Puma Mines.
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IAEA chief: Military activity stopped Zaporizhzhia Monitor Rotation
The head of United Nations nuclear watchdog, said that intense military activity was the reason for the cancellation of a rotating mission of monitors on Wednesday at the Russian-held Zaporizhzhia Nuclear Power Plant in southern Ukraine. Rafael Grossi is the director general of International Atomic Energy Agency. He did not assign blame but stated that his staff shouldn't be put in such a stressful situation. Russia and Ukraine both blamed the other for cancelling the rotation. Grossi stated in a website statement that he was "deeply disappointed" by the cancellation of the carefully planned and agreed-upon rotation of staff. The staff is performing vital work under very difficult circumstances in order to prevent a nuclear incident during the conflict. It is unacceptable to put our staff's safety at risk in this manner. Grossi said that he would consult both sides in order to ensure that monitors can continue their mission while maintaining nuclear safety. Russia accused Ukraine that it was engaging in "provocations", to disrupt rotation. Yevgeny Balitsky, the Russian-installed Governor of the Region, accused Ukraine of launching an attack by drone on Enerhodar. This is the closest city to the plant where many employees live. He claimed that drone debris had fallen within 300 metres (984.25 feet) of one reactor at the plant. Heorhii Tikhyi is a spokesperson for the Ukrainian Foreign Ministry. He said that Russia deliberately disrupted rotations, a tactic which he claimed had been used in the past. Tykhyi stated that "Russia gives vague signals about its readiness to ensure safe passage but, an hour before starting the rotation, it opens fire or begins hostilities." In the first weeks of Russia's invasion of Ukraine in February 2022, Russia took over the Zaporizhzhia Plant, Europe's biggest with six reactors. Since then, each side has accused the other of staging an attack around the nuclear plant and putting the facility at risk. Since September 2022, the IAEA has been stationing monitors in the station and is present at all nuclear facilities in Ukraine. (Reporting and Writing by Lucy Papachristou, Editing by Christina Fincher Ron Popeski Richard Chang
China hawk selected for key US Commerce Dept. job
Landon Heid was nominated by President Donald Trump for a key position in the U.S. - China tech battle. Heid served on the House of Representatives Select Committee on China.
According to a U.S. Senate document, Heid is being selected to become assistant secretary of Commerce in charge of export administration. Heid was a China-hawk who set technology policy at the congressional committee. He would then help to design export controls that would keep AI chips and the equipment needed to make them, as well as other technology, from China and other nations.
Heid was the driving force behind a flurry of action by the committee in order to combat what they deemed to be China's threat against U.S. National Security.
The committee released a statement last month in support of an aggressive global licensing regime for artificial intelligence development. This was just before the Commerce Department issued a new rule that would tighten U.S. control over AI chip flow across the globe.
The Trump administration could change the rule that is set to come into effect in May.
Heid was responsible for a campaign last year that sought to limit business with BGI and other Chinese biotech companies, including WuXi Apptec and WuXi Biologics. Although proposed legislation gained momentum during the last Congress it failed to pass.
The White House didn't immediately respond to an inquiry for comment. Nor did Heid.
Heid will report to Jeffrey Kessler if confirmed. Kessler is a Washington-based trade lawyer who has been nominated to be the undersecretary of Commerce Department Bureau of Industry and Security. First reported that Kessler's name was being considered.
Trump sent the Senate several other nominations to fill posts in Commerce. David Rader has been selected to be the Assistant Secretary of Commerce responsible for industry and analyses. According to LinkedIn, Rader is currently a senior adviser at the Department of Defense.
Taylor Jordan has been nominated as Assistant Secretary for Commerce, Environmental Observation and Prediction. David Fogel is selected to be Assistant Secretary of Commerce Global Markets and Director General of the U.S. Foreign Commercial Service.
(source: Reuters)