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Donald Trump's trade threats and tariffs
Since Donald Trump returned to office in the United States last month, he has imposed numerous tariffs on imported goods and threatened to do so more frequently. These can be broad - such as a tariff on all imported goods from abroad - or targeted at certain sectors, countries, or regions to try and get them to comply with his demands. Trump's threats are constantly changing, and other nations and businessmen are unsure of what to expect next. 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. Last week, Trump asked his economics team to devise plans for reciprocal duties on all countries that tax U.S. imports. They also had to address non-tariff barriers, such as vehicle safety regulations that exclude U.S. automobiles and value added taxes that raise their costs. 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 costs to consumers. Global trading partners may impose counter-tariffs on U.S. agricultural and energy exports. This could lead to a global trade war that would create uncertainty for investors and businesses. Specific COUNTRIES Trump's tariff proposals are aimed at several key trading partners. MEXICO AND CANADA : Mexico and Canada were the two largest trading partners with the U.S. from 2024 to November. Trump announced that he would impose 25% tariffs on imports coming from Mexico and Canada, which will go into effect February 4, as a retaliation against migration and drug trafficking. Trump postponed the tariffs until March 1, pending further negotiations with these two countries. Canada exports mainly crude oil, other energy products and cars and auto parts as part the North American automotive manufacturing chain. Mexico exports a variety of goods to the U.S., including industrial and automotive products. CHINA: Trump has imposed a tariff of 10% on China in order to keep his promise. China announced that it would begin levying levies against some U.S. products on Monday. In Trump's initial term, both countries were involved in a lengthy trade war which hurt their economies. Trump has said that the EU, and other countries, have alarming trade surpluses. 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. despite the fact that U.S. export capacity for gas is close to its limit. In a statement released on 14 February, the European Commission stated that the "reciprocal trade policy" was a step backwards. RUSSIA: Trump threatened to hit Russia and "other participating countries" with tariffs, taxes and sanctions if an agreement to end the conflict in Ukraine was not reached soon. INDIA/BRICS NATIONS : Indian Prime Minister Narendra modi met with Trump last week in Washington and offered to discuss easing tariffs and buying more U.S. gas, oil and combat aircraft. He also suggested possible concessions. India is the largest trading partner of the United States and imposes the most tariffs. Trump threatened to impose tariffs on the BRICS nations if they didn't agree not to create a new currency. COLOMBIA - Trump announced that he would impose 25% tariffs on Colombian products after the country refused flights with migrants who were to be deported by the U.S. The two sides reached an agreement. PRODUCTS Trump said on Sunday that he would impose tariffs on all imports of steel and aluminum used by automakers and aerospace companies as well as in construction and infrastructure. According to World Bank statistics, the U.S. imports more aluminum than any other country in the world. According to the International Trade Administration, it has been running a steel trade deficit for over a decade. The International Trade Administration reports that it is the world's second-largest steel importer, with over half of its volumes coming from Canada. SEMICONDUCTORS : Trump stated that tariffs would start at "25%" or more, and increase substantially over a period of one year. However, he did not specify when they will be implemented. Taiwan Semiconductor Manufacturing Co, the world's biggest contract chipmaker, produces semiconductors for Nvidia and Apple, among other U.S. customers, and 70% of its revenues in 2024 will come from North American clients. PHARMACEUTICALS : Imposing tariffs of 25% or more on pharmaceuticals imported could be a burden on Japan. This is the home to major drugmakers like Takeda Astellas Daiichi Sankyo Eisai and Takeda. India will also be a part of the future Be impacted As most generic drugmakers in the U.S. count it as their biggest market, exports to that country account for 31% of all the industry's exports. Trump announced that levies for automobiles could be implemented as early as April 2. For example, the European Union collects a duty of 10% on imported vehicles, which is four times higher than the 2.5% U.S. tariff rate for passenger cars. The U.S. charges a 25% duty on pickup trucks imported from other countries than Mexico and Canada. Trump also floated the idea that tariffs of up to 100% would be imposed on other vehicles including EVs. In 2024, the automobile industry will account for more than $200 billion in imports from Canada and Mexico. (Reporting and editing by Maju Sam, Lincoln Feast, and Sriraj Kalluvila in Bengaluru.
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India's space regulator launches a $58 million fund for startups and to reduce reliance on imported goods
The Indian National Space Promotion and Authorisation Centre, or IN-SPACe, launched on Wednesday a fund of 5 billion rupees ($57.58 millions) to assist early-stage technologies in becoming commercial and to reduce the reliance on imported goods as the country strives to increase its market share within the global space industry. In a press release, the space regulator stated that the Technology Adoption Fund would also link government agencies with the private sectors, in order to position India as an important partner on a market that is becoming increasingly competitive. The fund offers financial support up to 60% for small and medium businesses and 40% for large industries. Maximum funding is 250 million rupees for each project, according to Pawan Goenka. This support will allow companies to improve their technology, improve production processes and meet the market demand both in India and abroad. India opened up its space industry last year to private investment as the government of Prime Minister NarendraModi pushed for greater monetization in the sector. The state-run Indian Space Research Organisation had long been the dominant player. The country hopes that liberalized regulations will attract international players, similar to the commercial space boom in the United States of America and Europe. The joint venture between Reliance Industries Jio Platforms, based in Reliance Industries, and Luxembourg-based SES secured regulatory approval for gigabit internet. Meanwhile, Elon Musk’s Starlink or Amazon’s Kuiper are still waiting to receive licenses. The government also approved a separate venture capital fund of 10 billion rupees for startups in space, awarded contracts to private companies for ISRO's primary launch vehicle and intensified its efforts to form global commercial partnerships. "We are seeing a surge in pioneering startups creating groundbreaking solutions for space industry. To turn these concepts into products that are marketable, it is important to have sufficient funding. This includes government institutions.
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ISPRL chief: India wants to store oil in Oman
L.R. Jain, chief executive of Indian Strategic Petroleum Reserves Ltd (ISPRL), said that India has begun to look for oil storage facilities overseas and is currently in talks with Oman about leasing a facility capable of holding approximately 5 million barrels crude oil. Jain, CEO of Indian Strategic Petroleum Reserves Ltd. India, which is the third largest oil consumer and importer in the world, imports more than 80% of its oil requirements and is increasing its strategic reserve capacity to protect itself against any disruptions to global oil supply. Jain said that if the talks with Oman are successful, it would be the company's first time holding strategic storage abroad. ISPRL manages federal oil inventory and operates three SPRs at Vizag, Andhra Pradesh and Mangalore, and Padur, Karnataka, with a capacity of approximately 5.33 million tonnes. India wants to increase its oil storage capacity in order to join the International Energy Agency, which requires that its members hold a minimum 90 days worth of oil consumption. India's storage capacity is 74 days worth of crude oil or refined fuels. ISPRL has enough crude and refined fuel to last 64.5 days, while Indian companies only have 9.5 days worth of oil. Jain stated that ISPRL would build a 4 million ton strategic storage facility in Chandikhol, in the eastern state of Odisha and a 2.5-million ton new facility in Padur, in southern India. He said that the new SPRs underground at Chandikhol, and Padur would be built by private companies in partnership with the federal government. The federal government will have the first right of refusal to oil in case there is a shortage. He said that ISPRL was also looking at building a 5 million ton underground crude storage, as well as gas reserves in the desert state of Rajasthan.
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Aluminium imports from Russia are banned by EU ambassadors, resulting in a one-month record high.
The price of aluminium reached a one-month high on Wednesday, as EU ambassadors agreed to prohibit Russian primary aluminum imports. This will be part of the 16th package of sanctions that will be adopted by Monday in honor of the third anniversary since Russia invaded Ukraine. The price of three-month aluminum on the London Metal Exchange was 1.1% higher at $2,697 per metric ton as of 1104 GMT, after reaching $2,702.5, its highest level since January 20. EU diplomats have said that the ban on Russian aluminium imports will be implemented in phases over a period of one year following its official adoption. The 27-member bloc, which has reduced Russian aluminium imports from 2022 onwards, is helping to limit the price reaction. Traders said that the EU's dependency on Russia was low. A trader said that the LME aluminium contract had been increasing for four sessions in a row, and was also being bought by Commodity Trading Advisors. The LME data daily showed that the total amount of aluminium in LME registered warehouses was a staggering 1.1 million tonnes. After 4,000 tons of outflows, the total dropped to 547.950 tons. This is their lowest level since May. After 28,850 tons of new cancellations, the on-warrant stock fell to 227.775 tons, reducing the amount of metal that is available for the market. Uncertain was the longer-term effect of geopolitical events on metals. After a first meeting, the administration of U.S. president Donald Trump agreed on Tuesday to continue talks with Russia about ending the conflict in Ukraine. Marco Rubio, the U.S. secretary of state, said that European countries had also imposed sanctions and would need to be included in discussions on lifting these measures. He said that if the conflict ended, it would "unlock opportunities" for U.S. and Russian cooperation, such as "some unique, possibly historic economic partnerships." Regarding metals demand in America, the market focused on Trump’s threat to impose a 25% tariff on automobiles and semi-conductors. Ole Hansen is the head of commodity strategy for Saxo Bank. He said, "Overall the industry struggles to determine what the near-term future holds regarding demand, given the U.S. Tariff threats and possible countermeasures by those who are impacted." LME copper increased 0.4% to $9.513 per ton. Zinc was up 0.3% to $2,893.50. Nickel was unchanged at $15,350. Tin rose 0.5% to $30,910, and lead fell 0.8% to $1981. (Reporting from London by Polina Deitt; Additional reporting in Bengaluru by Anushree Mukerjee; Editing by Elaine Hardcastle).
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German Gas Hub's Role in Implementing European Storage Policy
Trading Hub Europe in Germany will be responsible for implementing any changes in the rules regarding gas storage filling that are decided by national and European policymakers in response to claims that rigid targets inflate prices. According to a draft EU report due to be released next week, The European Commission intends to work on more flexible goals for EU countries in order to fill their gas storage before winter. The unwieldy acronym THE is the state-mandated manager of the gas market. He has stated that there are no decisions yet made on the timing and shape of the changes in the system. However, leaked EU documents show some action at the EU level. The national level THE began discussions in January on the new filling procedure. The following are some explanations about what THE is. CONTEXT Gas stocks in the European Union are now less than half full, as a harsh winter resulted to a rapid drawdown. Russian supplies also ceased, causing concern about supply security. Germany's inventory is 41% full compared to 71% last year. TARGETS The largest storage provider in Germany should, under the current obligations, fill caverns to 90% by November 1 according to its current obligations. Some EU countries, including Germany, are concerned that the target has driven prices up by promising traders easy profit should subsidy flow. Who is the GAS MARKET MANGER talking to, and about what? THE, as the auctioneer and administrator for a quarter (25%) of German storage, is required to work with the regulator, the Bundesnetzagentur. They want consumer prices to be reined in. The technical jargon of THE is that it will create new products called SBI (Strategic Filling Instruments) for auction to replace SSBOs – Strategic Storage-Based Options – which, according to traders, would reduce commercial risk for suppliers. The regulator confirmed that it is "evaluating the options and needs" surrounding SBIs, with the Ministry and THE but stated the outcome is still open. GERMAN INDUSTRY CARES The country is in a legal limbo, as the new elections scheduled for February 23 will not produce a functioning Government or provide a clear direction to central ministries that oversee THE. After protests from neighbours, the German gas tariff that was supposed to offset THE costs has been removed. The result has been an increase in the price of gas ex-storage within Germany. Vera Eckert, Jan Harvey and Vera Eckert report.
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Seven bus passengers killed by gunmen in Southwest Pakistan
Officials said that seven people were killed by unknown gunmen on a bus bound for Lahore in the Balochistan Province of southwestern Pakistan after they forced them to leave and checked their identification documents late Tuesday. Balochistan is Pakistan's key battleground against separatists who are fighting for greater autonomy and to gain a share in the natural resources of the region. Recent months have seen a rise in attacks against security forces, Chinese projects for infrastructure and workers from the richer central Punjab Province, whom militants accuse of exploiting Baloch resource. Waqar Khurshid alam, a senior government official, said that the group of 40 men pulled seven passengers from a bus in Balochistan’s Barkhan District, checked their national identification cards, and then shot them. Alam stated that all seven victims were Punjabi. In a video, a woman in the Punjabi city of Faisalabad said: "Armed men dragged [my elder brother] from the bus when they checked his ID card. But they didn't do anything with us." The motive for the attacks was not clear. Officials said that the area was cordoned off, but that the attackers had managed to escape. Shehbaz Shaif, Pakistan's prime minister, said that the gunmen will be brought to trial. Sharif made a statement that said, "Those who damage the lives and properties of innocent citizens will pay a heavy cost." The murders remind us of the roadside attack that took place in August, when 23 people were killed by armed men who had checked passenger IDs before setting fire to their vehicles. The attack on the school was part of an ongoing campaign to Wave of Violence Separatist militants have targeted police stations, infrastructure and civilians in Balochistan. At least 73 were killed. This operation was carried out by the Baloch Liberation Army, the largest of the ethnic groups fighting the central government. It called it "Haruf", or "dark windsy storm". A bomb that targeted a coal mining vehicle on Friday killed or injured at least eleven people. No group has claimed to be responsible. Baloch Liberation Front (another separatist group) said that it has carried out eight separate attacks against security forces over the last week but not on coal miners. Insurgent groups also target Chinese nationals in Balochistan. China is also developing Gwadar, a deep-water seaport in the province. Beijing has made a significant investment in regional development as part of its $65 billion commitment to the Belt and Road Initiative's China-Pakistan Economic Corridor. Saleem Ahmad, Asif Shahzad and Ariba Sayeed contributed to the report. Kate Mayberry edited.
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HSBC ditches 2030 net-zero emissions target
HSBC has announced that it will not be achieving its goal of achieving net-zero emissions in its entire business by 2030 due to the slow pace of change in real economy. The biggest bank in Europe said that it expects to achieve a 40% reduction in emissions by 2030, across all of its operations and business travel. It also aims to reach the more ambitious target of net-zero by the middle century. It announced an internal review on targets for emissions related to its loans. In its annual report, the bank said that it had a limited impact on companies in terms of technological advancements, demand from the market and policy influencing change. HSBC said that its original target was based upon the ability to offset certain supply chain emissions using carbon credits, which is not in line with the recent guidelines from Science Based Targets Initiative which evaluates and approves climate targets for corporations. The bank's Chief Sustainability Officer resigned several months ago, after Georges Elhedery, the chief executive of the bank, removed the position from the bank's Executive Committee in a reshuffle. Activists expressed concern that the decision indicated a retreat from HSBC’s climate ambitions, adding to fears that the banking sector as a whole is pulling back on its emission reduction commitments. Morgan Stanley has lowered its expectations of emissions reductions from its corporate loan portfolio. A number of U.S. financial institutions have also left a climate alliance. (Reporting and editing by Bernadettebaum and David Goodman.)
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Glencore oil trading volumes rose in 2024, results show
Preliminary results released on Wednesday showed that the London-listed commodity trader and mining company Glencore traded more crude oil in 2024 compared to the previous year. However, its profits from trading energy products declined. Glencore traded crude oil, oil-based products, and gas products at a rate of 3.7 million barrels a day (bpd), compared to 3.3 million bpd by 2023. Glencore's volumes traded have fallen every year from 2020-2022. They reached a low of just 3 million bpd. The decline coincided with the COVID-19 outbreak, disruptions caused by Russia's invasion in Ukraine, and increased scrutiny of Glencore's oil-trading activities from the authorities. Alex Beard retired in mid-2019. He will be tried in London on charges of bribery in 2027. Glencore's adjusted earnings before taxes and interest (EBIT) in 2024 for energy products and coal used to make steel were $908 millions, a decrease of 47% from the previous year. Glencore stated that the earnings had returned to normal after extreme price and volatility. Steve Kalmin, CFO, said that the $1.7 billion EBIT in 2023 for energy trading "was at a level which was unsustainable, and frankly, this is where normal cruising speeds are," during an investor conference call. Glencore has expanded its oil portfolio over the past year. It acquired Shell's Singapore refinery of 237,000 barrels per day (bpd) capacity with Chandra Asri. A crude supply agreement was signed with the UK's Lindsey refinery owned by Prax. And a $400-million debt deal was signed with Tullow Oil in November 2023 for marketing Ghanaian crudes and Gabonese. Trafigura, a rival trading house, increased its traded oil and fuel volume to 6.8 million barrels per day (bpd) for the 2024 financial period, which runs October through September. This is up from 6.3 millions bpd during 2023. Vitol is yet to release its results. Reporting by Robert Harvey. (Editing by Jane Merriman, Barbara Lewis and Robert Harvey)
Mali mine collapse kills 40 people
A head of a union in the industry said that 43 people, mainly women, died after a gold mine collapsed on Saturday in western Mali.
Taoule Camara of the National Union of Gold Counters and Refineries (UCROM) said that the accident occurred near the town Kenieba, in Mali's richly gold-rich Kayes Region.
He said that the women were looking for gold in open pits left by industrial miner to find scraps when they fell into the earth.
The spokesperson for the Mines Ministry confirmed that the accident occurred between Kenieba Dabia but refused to provide further details, as the ministry teams on the scene have not yet provided their report.
In West Africa, artisanal mining has become increasingly profitable in recent years as a result of the growing demand for metals.
As artisanal miners often use methods that are not regulated, accidents can be fatal.
In late January 2013, 13 artisanal gold miners including three children and women were killed after the tunnel they were using to dig for gold was flooded.
(source: Reuters)