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Ugandan Museveni arrives at South Sudan amid political crisis
The Ugandan President Yoweri Mueveni arrived on South Sudan's border on Thursday. This was the highest-level mission to the country since the clashes in the region and the arrest of the vice president raised fears that civil war could return. Salva Kiir of South Sudan met Museveni at the airport. His administration accused First Vice-President Riek Makar of igniting rebellion and placed him under house arrest. In public remarks made at Juba Airport, the Ugandan leader did not directly refer to the crisis. His military had been invited to South Sudan to assist in securing the capital last month. This visit comes after mediation missions conducted by the African Union this week and an East African regional organization to de-escalate the crisis. Museveni said he will hold talks with reporters "aimed at strengthening our bilateral relations and increasing cooperation between our nations". Kiir stated that the two leaders will discuss "current political events in the country". The United Nations has warned that the young nation of the world could be at the brink of a full-blown ethnic conflict due to the standoff between Kiir, and Machar. Both men led opposing forces during a civil war from 2013-2018 that resulted in the deaths of hundreds of thousands. Uganda supported Kiir's troops during the civil conflict and sent troops to the Northeast last month, amid fighting between South Sudanese military and an ethnic Nuer milita. Machar's forces, which were mostly Nuer, were allied with White Army militias during the civil conflict. However his party denies that there are still links. Muhoozi Kainerugaba - Museveni's own son - said that he ordered Ugandan forces not to attack the White Army as long as they stopped offensives against Ugandan soldiers. Machar's Party says that the Ugandan intervention violates South Sudan's embargo on arms. Analysts believe Kiir is trying to solidify his position in the face of discontent among his own party and speculation regarding his succession plan. (Writing and editing by George Obulutsa, Hereward Holland and Andrew Heavens; Aaron Ross and Andrew Heavens).
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Pandora's annual U.S. Tariff Impact is $178 Mln
Danish jeweller Pandora estimated on Thursday that the total impact of U.S. Tariffs on its company would be around 1.2 billion Danish Crowns ($178.34 millions) per year. This is before any mitigation actions taken by the company. Pandora's shares fell 12% to a low of 15 months on Thursday after U.S. president Donald Trump raised duties on imports of goods from many countries. This included a 37% duty on Thailand where the company has two factories that produce most of its charms bracelets and other jewelry. Pandora's biggest market, the U.S.A., which accounted for 31% in revenue last year, estimated that tariffs would have an impact of 700 million crowns by 2025. Pandora has said that it will consider price increases and changes to the supply chain in order to mitigate this impact. It expects to be fully able to mitigate 250 million crowns associated with goods sold eventually in Canada and Latin America, but distributed through the U.S. Pandora said it would be closely monitoring developments, including the discussions between the U.S. government and the countries affected by tariffs. Reporting by Louise Breusch Rasmussen and editing by Terje Sollvik and David Evans.
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Lesotho's economy will be destroyed by Trump's tariffs, says economist
An economic analyst in Lesotho said that a reciprocal 50% trade tariff, the largest levy among the long list of U.S. president Donald Trump's target economies, would kill the small Southern African country Trump mocked last month. Lesotho is among the poorest countries in the world with a Gross Domestic Product of just under $2 billion. The United States has a large surplus of trade with Canada, mainly made up by diamonds and textiles including Levi's Jeans. Exports to the United States in 2024 will total $237 million and represent more than 10%. Trump imposed new tariffs against global trading partners on Wednesday, upsetting decades of rules-based commerce and threatening to increase costs for consumers. He said that the "reciprocal tariffs" were a reaction to duties and non-tariff barriers placed on U.S. products. According to the U.S. Administration, Lesotho charges tariffs of 99% on American products. Experts in trade said that the AGOA trade agreement, which was meant to develop African economies through preferential access, had ended. The pain was also compounded after Trump demolished USAID, a government agency that had been a major aid provider to the continent. Thabo Qhesi is an independent economist based in Maseru. He said that the 50% reciprocal tariff imposed by the U.S. will kill the textile and clothing sector in Lesotho. Oxford Economics reported that the textile industry, which employs around 40,000 people, is Lesotho’s largest private employer. It accounts for about 90% of manufacturing employment as well as exports. Then there are the retailers that sell food. Then there are the residential property owners that rent out houses to workers. This means that if factories close, the industry will die and there are multiplier effects," Qhesi explained. "So Lesotho is dead, as they say." Lesotho is a mountainous country of 2 million people surrounded by South Africa. The government had no comment regarding the trade tariffs Thursday. Last month, the foreign minister said that the health sector, which is heavily reliant on aid, had already felt the impact. The country has one of highest HIV/AIDS rates in the entire world. The formula for calculating the U.S. Tariffs used the U.S. Trade Deficit in Goods with each Country as a proxy of alleged unfair practice, and then divided that by the amount imported into the United States. Lesotho, Madagascar and Nicaragua, which import small quantities of U.S. products, were hit with higher tariffs. These countries are much wealthier than Lesotho. According to Oxford Economics, this is also true for Vietnam, Nicaragua, and Cambodia, whose exports to the United States represent more than 25% GDP. Sekhoane Masokela is a corn seller in Maseru who saw Trump's announcement to be a reason for him to look for new markets. "Trump is not the only one who has a country. He is giving us a chance to break ties with him, and find other countries." Masokela stated that it was clear that Trump no longer wanted to work with the country. (additional reporting from Sisipho Scweyiya in Johannesburg, writing by Silvia Aloisi and editing by Hugh Lawson).
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U.S. cryptos fall as Trump's tariffs shock markets
U.S. crypto-stocks declined on Thursday, after President Donald Trump’s latest round sweeping tariffs rattled investors’ confidence due to increasing global trade tensions. This sparked a selloff in riskier investments. Coinbase Global, a crypto exchange, fell by about 7.7%. Major bitcoin holder Strategy also dropped by 5.6%. MARA Holdings fell about 8.3%. Riot Platforms dropped 8.7%. Bitfarms lost 5%. The wide losses show the impact of tariffs on a variety of asset classes. Bitcoin, the largest cryptocurrency, fell 3.9% while ether plunged 5.2%. Despite the fact that the Trump administration has indicated a willingness for crypto to be embraced and a lighter regulatory approach, the broader economic instabilities tied to this sector could still have an impact on companies. Marcin Kazmierczak is the chief operating officer of blockchain company RedStone. He said that these declines show a correlation between digital assets, and macroeconomic policy changes. He said that "but protectionist policies which could weaken the dollar hegemony, could accelerate interest in alternative decentralized solutions over the medium to long term." Analysts have said that the changes are less drastic than in other industries. The price action underscores crypto's borderless and hyper-democratic nature, which allows investors to hedge against macroeconomic uncertainty. David Hernandez, crypto specialist at 21Shares, said: Marco Iachini is senior vice president for research at Vanda Research. at Vanda Research. However,?? He said that the amount of water could decrease as the situation becomes more unstable. (Reporting and editing by Arun K. Koyyur in Bengaluru)
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The EU Parliament has voted to freeze sustainability regulations
The European Union gave itself more time on Thursday to negotiate changes that would exempt smaller companies from the sustainability reporting requirements, which European industry claims put them at a disadvantage. In February, the European Commission proposed legal changes that it called "Simplification Omnibus", which would exempt thousands smaller European companies from EU sustainability reporting requirements. The EU responded to the complaints of industry in Europe that it could not compete with its rivals from China and the United States where President Trump has rolled back regulations and imposed tariffs on imported goods. Negotiations between the European Parliament, member states and the proposal can take up to a year. To avoid laws already agreed upon being implemented before the negotiations are concluded, the European Parliament voted Thursday to delay the reporting rules in place for most companies by two years. Firms with less than 500 employees, and those larger companies that are not considered "public interest entities", will not be required to report their sustainability impact until 2027. Reports must then be submitted in 2028. The reporting requirements for most larger firms are due this year. On Thursday, the Parliament agreed to postpone by an additional year the EU supply chain law. This policy will therefore not come into effect until 2028. The EU countries have already approved the delays but will need to give their formal approval within the next few weeks. This final vote is just a formality and is expected to be passed. Negotiations will begin then on the larger proposed changes to laws. The changes include excluding 80% of companies that were initially subject to the green reporting regulations by only applying the rules to companies with over 1,000 employees. The EU wants to amend its due diligence laws so that companies must assess their supply chain for environmental and human right problems every five years instead of every year. While the industry has backed the move to simplify, some investors, lawmakers on the left and activists have criticised the initiative. They said that the first round of omnibus proposals will undermine corporate accountability, and such rapid changes to laws recently agreed create an unstable environment. (Reporting and editing by Barbara Lewis; reporting by Kate Abnett)
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Wall Street to plummet as Trump tariffs decimate dollar
The dollar, oil and world stocks all fell on Thursday after President Donald Trump’s new U.S. tariffs raised fears of a global economic recession. This led investors to look for safe haven assets such as bonds and the Japanese yen. The new 10% baseline tariff on imported products, plus the eye-watering tariffs that Trump imposed on dozens countries he claimed had unfair trade barriers, left traders frightened by their severity. S&P 500 futures and Nasdaq's futures both fell 3.4% and 3.9% respectively ahead of what is expected to be an unsettling start in the United States. Dollar's 2% drop was heading for the worst daily loss since November 2022, and the toughest start of any year since 1995. Brussels and other capitals expressed outrage over the new reciprocal 20% levy imposed on the EU 27-country bloc. The bourses in Europe fluctuated between 1.3% and 2.6% declines. Tokyo's worst week since nearly two years was in Asia, which saw some of the most severe tariffs. Tokyo fell 2.7%. Vietnam was hit even harder. JPMorgan analysts said that the tariffs are "significantly higher" than what the worst-case scenario predicted. Fitch, a credit rating agency, warned that they could be a game-changer for the U.S. economy and global economies. Deutsche Bank said it was a moment "once in a life time" which could reduce U.S. economic growth by between 1%-1.5% this year. Olu Sonola, Fitch's director of U.S. Economic Research, said that many countries would likely be in a state of recession. If this tariff rate is maintained for a long time, you can forget about most forecasts. Fitch lowered China's credit ratings shortly after, citing steep U.S. import tariffs. The rush for ultra-safe government securities that guarantee income has driven U.S. Treasury rates down to 4%. Germany's 10-year yield - the European benchmark borrowing rate – fell by 8.5 basis points, reaching 2.64%. The new import taxes will be the highest in a century in the largest economy in the world. In the event that they trigger recessions, it is likely that central banks will cut interest rates around the globe, benefiting bonds. Wall Street braced itself for a brutal beating on Thursday. Apple's stock dropped 6.5% due to the tariffs imposed on China, the country where it does most of its manufacturing. Amazon.com fell over 5%. Microsoft dropped 1.8%. And AI poster child Nvidia dropped 3.5%. This comes after the worries about tech giants have risen to the point where trillions of dollars have been wiped from their books this year. Nigel Green is the CEO of deVere Group, a global financial advisory firm. He said: "This is what you do when you claim to supercharge the economic engine of the world." CHINA FOCUS Trump's tariffs were particularly harsh on Asia. China received a reciprocal tariff of 34%, Japan 24%, South Korea 25 % and Vietnam 46%. In response, Vietnamese stocks fell 6.7% and Nike, Adidas, and Puma who all rely heavily on Vietnamese and other Asian producers were smashed by as much as 10 %. Investors sold exposure to global growth as the risk-sensitive Australian Dollar also fell. Brent, which is a proxy of economic activity, fell as much as 4%, pushing it back below $72 per barrel. It's on track to have its worst day this year. The gold price reached a record-high of $3,160 per ounce but then slowed down. Meanwhile, the Japanese yen rose more than 1.5 percent to 147.01 dollars as traders sought safety outside of the U.S. Dollar. The Swiss Franc, another safe haven currency, reached its highest level in four month as the euro soared 2% to $1.10.00 Ursula von der Leyen, EU chief, said that the consequences would be disastrous for millions of people in the world if the talks with Washington fail. She added that the 27-member EU was prepared to strike back if the talks failed. "Uncertainty spirals and will trigger the rise of more protectionism." China's currency remained relatively stable, with the yuan dropping only 0.4% in spite of tariffs on Chinese exports exceeding 50% and Vietnam being hit as a result. 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, a Deutsche Bank strategist, says that the key focus in the coming days will be whether the dollar continues its decline and how Europe and China may respond. He warned that "given the dramatic nature" of the moves the dollar was at risk of a wider confidence crisis.
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Executives, trade and labor associations comment on Trump's reciprocal duties
Donald Trump announced on Wednesday that he will impose a baseline 10% tariff on all imports into the United States, and higher duties for some of the biggest trading partners. This could lead to a trade conflict and upset the global economy. Countermeasures from trading partners could result in a dramatic increase in prices of everything, including bicycles and wine. Trump has already levied 25% on automobiles and auto parts. The latest responses from business executives, unions and trade associations. Companies STELLANTIS The automaker announced that it would temporarily stop production in some of its Canadian assembly plants and Mexican assembly factories, including its Windsor assembly facility in Canada. ANTONIO BARAVALLE is the CEO of LAVAZZA We had planned to increase the local production (in the U.S.A.) by 100%. "We're ready to go... but there's this other element to investigate, the duties for Brasil... If they put 10% on Brazil, then the duty (of 20%) is already half. The coffee maker produces about 50% of the amount it sells locally in the U.S. FERRARI The purchase contracts for Ferraris contain standard and clear clauses that allow the company to adjust the price in the event of a change in the market conditions before the vehicle is delivered. A Ferrari spokesperson confirmed that new tariffs would also be applied to Ferrari cars that were ordered in the past but have not yet been delivered to the U.S. MOTOFUMI SHITARA, CEO, YAMAHA MOTOR "Our exports will certainly be affected." We will have to raise prices or reduce costs if these tariffs are extended over time, even for vehicles. SHIPPING GROUP MERSK "We expect our customers to be more careful about their stock levels." We're likely going to see some air freight rush orders in the U.S. very soon, before the tariffs go into effect. We will also see an increase in the demand for bonded warehouses as customers want to delay clearing their goods until they have more certainty." GERRESHEIMER MAKES PACKAGING & MEDICAL EQUIPMENT Tariffs are primarily affecting our exports to the U.S. from our Mexico-based plant. Injection vials are one example. We will pass on these customs fees to our customers as an additional cost. We will be able, if necessary and if customs duties remain in place for a longer period of time, to move our capacities." Our production network in the U.S. opens up business opportunities with pharmaceutical companies who are increasingly looking to source and produce locally in the U.S. MASSIMO BATTAINI is the CEO of CABLE MAKER Prysmian "On initial reaction, it appears that the announcement has a positive effect on local production. The tariffs are only applied to the finished product, so there is no risk of U.S. producers being undercut by foreign competitors. We are the best placed in the industry to maintain our leadership. With 30 factories spread across the U.S., we have the most factory capacity. ANDERS VINDEGG HEAD OF MEDIA RELATIONS, ALUMINIUM HYDRO PRODUCER "We work actively from Norway as well as in Brussels, the EU to inform and to actively work with the organizations and other measures we're part of in order to leverage the importance Norwegian aluminium for Europe." We're using our network, and our people are on the ground working with the U.S. Administration to understand the effect of the tariffs. ASSOCIATIONS International Apparel Federation, representing garment manufacturers in 40 countries The announcement by the US government of high taxes on trade with the rest is a shock to the global apparel industry. This unnecessarily creates an entirely new, often irrational world that affects billions of dollars in investments and the lives and livelihoods of tens and millions of people who work in our industry worldwide. Someone will pay the price." CANADIAN STEEL ASSOCATION To reduce its dependence, the Canadian Steel Industry urgently needs the adoption of border measures to address unfair trade in steel in Canada, and help recapture the Canadian Market for our industry, workers, and communities. The Spanish Association of Olive Oil Exporters This 20% is a serious disadvantage for the Spanish olive oil industry, as compared to other countries that produce olive oil but do not belong to the European Union. "98% (of the olive oil consumed by Americans) is imported, so these tariffs would result in an increased purchase price which will be paid by U.S. consumers." consumers." KEVIN CREAVEN, CEO, BRITISH AEROSCAPE AND DEFENCE INDUSTRY GROUP, ADS, ON THE AEROSPACE INDUSTRY COMPONENTS We are not sure if the exemption from all tariffs (on items classified as airworthy by regulators) is still in place and if these tariffs are applicable or not. This could make the situation worse. COPA-COGECA EU FARMING GROUP The introduction of additional tariffs could disrupt global supply chains and drive up prices. It would also limit the market access of farmers and agricooperatives from both sides of Atlantic. This will have significant economic implications for the agricultural industry. "Copa & Cogeca urge EU & US policymakers in the next days to exhaust all diplomatic efforts." Both sides must be constructive in addressing grievances, without jeopardizing trade benefits. ANTHONY BRUN, HEAD OF FRENCH GROWERS ASSOCIATION (UGVC) "One might have been frightened by much higher tariffs. However, this risk remains and is associated with a possible conflict over bourbon whisky. Already, we face tariffs from China. Now, there is the U.S. and the consequences are going to be brutal for wine growers. ETHAN LANE SENIOR V.P. OF GOVERNMENT AFFILIATIONS, NATIONAL CATFARMERS BEEF ASSOCIATION "President Trump has taken action to remove numerous trade barriers which prevent overseas consumers from enjoying high quality, wholesome American Beef. NCBA will engage with the White House in order to optimize export opportunities and ensure fair treatment of America's beef producers worldwide. SIGRID de VRIES, DIRECTOR GENERAL, EUROPEAN MOBILE MANUFACTURERS ASSOCIATION "We urge both leaders to meet immediately to find a resolution to any issues that prevent free and fair trading between historical allies, and to allow the EU-US relations to flourish again." SWISS BUSINESS GROUP ECONOMISSE "Another escalation in the trade conflict is to be avoided. Swiss economic diplomacy and the Federal Council are urged to find quick solutions with the U.S. Government at the negotiation table. "From an economic perspective, the U.S. tariffs on Switzerland are not comprehensible - rather the opposite." DIRK JANDURA HEAD OF GERMANY EXPORTERS ASSOCIATION (BGA) "We'll have to pass on these tariffs as price increases and this will impact turnover in many instances." It is a blind economic alley that will lead to welfare losses on both sides of Atlantic. Reporting by Bureax; compiled by Greta Rose Fondahn and Linda Pasquini, edited by Sayantani Ghosh and Shounak Dasgupta. Alan Barona, Milla Nissi, and Sayantani Ghosh.
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India restricts steel purchases to favor domestic mills
A government notification revealed that India tightened its steel procurement rules in order to favor domestic production. This is at a time where mills are suffering from lower prices for iron and steel as a result of a large influx of cheaper imported products. India's imports of finished steel from China, South Korea, and Japan reached a record in the first ten months of the previous fiscal year that ended on March 31. All Indian ministries, departments, and agencies are required to give priority to locally produced iron and steel under the new "Domestically Manufactured Iron And Steel Products Policy-2025". A gazette notice published on 1 April indicated that the policy was valid for five-years and could be extended by the Ministry of Steel at its discretion. The notification stated that specifying foreign certifications in the bid documents or unreasonable technical requirements is a discriminatory and restrictive practice against local suppliers. According to the policy, foreign entities and governments that do not permit Indian mills to take part in their tenders will not be permitted to participate in Indian government bids except for certain items specified by the Steel Ministry. However, the policy excludes any steel grades that are not produced in the country or if the domestic mills can't meet the required quantity for a particular project. This move comes after the Directorate General of Trade Remedies (which functions under the Trade Ministry) recommended a temporary tax of 12% for 200 days on some steel imports in order to reduce "serious harm" to the domestic market. (Reporting and editing by Neha Arora, Manvi Pant)
Canada gas prices fall after removal of carbon tax
The government removed the consumer carbon tax that was in place since 2019 on Tuesday, resulting in a sharp drop of gasoline prices across Canada.
Mark Carney, Canada's new Prime Minister, signed an order removing the Justin Trudeau era consumer carbon taxes on his first official day in office. He declared that the decision will help Canadians who are struggling to make ends meet. The Conservatives had been campaigning against the tax for years.
GasBuddy, a fuel market tracker, reported that fuel prices in eight provinces fell by more than six cents a litre after taxation was officially ended on Tuesday.
The data shows that the national average price for gasoline in Canada dropped from 155 cents to 143.6 cents on Wednesday. New Brunswick experienced the biggest decline of 15 cents a litre. British Columbia and Ontario also saw significant drops.
GasBuddy analyst Patrick De Haan wrote in an email to GasBuddy on Tuesday that "the drops continue widening."
According to Susan Bell, a Rystad Energy executive, the carbon price for gasoline between April 1, 2024 and March 31, 2025 was 17.6 cents per kilogram. Prices should therefore fall by this amount.
The Canadian Fuels Association has said that it anticipates a reduction of 20 cents per gallon in gasoline prices. This will translate to yearly savings for consumers of over C$500.
GasBuddy's data shows that gasoline prices in Quebec rose by 1.9 cents a litre on February 2, making it the only province in Canada with a carbon tax.
Bell stated that lower fuel prices may encourage some Canadians not to fly to the United States, but to drive to their domestic destinations instead.
She added that the trade war between Canada and the U.S. may increase Canada's unemployment, which will impact on fuel consumption.
On Wednesday, Donald Trump is expected to announce reciprocal tariffs with Canada and other trading partners.
The Canadian Fuels Association noted that it was difficult to predict the impact of the repeal on fuel demand.
A spokesperson for the group stated that "there are too many other factors affecting demand, especially around the direction of the global economy in the context of the U.S. Tariffs of April 2," a spokesperson said. Reporting by Shariq KHan in New York Editing Bill Berkrot
(source: Reuters)