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Canada announces C$29.8 Billion in Tariffs as Retaliation against US
Dominic LeBlanc, Canada's finance minister, announced that Canada would impose C$29.8 billion in retaliatory duties on the United States as a response to President Donald Trump's steel- and aluminum-tariffs. Trump's increased duties on steel and aluminium imports went into effect on Wednesday, as previous exemptions, duty-free quotas, and product exclusions had expired. His campaign to reorder international trade norms for the U.S. is gaining momentum. Canada is the largest foreign supplier of aluminum and steel to the United States. Canada's retaliation is aimed at steel products worth C$12.6billion and aluminum products worth C$3billion, as well as other imported U.S. products worth C$14.2billion for a total amount of $29.8billion. LeBlanc, at a press conference, said that the counter-tariffs of Canada affect products such as computers, sporting equipment, and cast iron. The U.S. and Canada trade war escalated as Justin Trudeau was preparing to hand the power over to Mark Carney this week, who had won the Liberal leadership race on Sunday. Carney stated on Monday that he would not be able to speak with Trump before he had been sworn in at the prime minister's office. Trump said again on Twitter that he wished Canada to become "our beloved Fifty First State." (Reporting and editing by Caroline Stauffer; Louise Heavens, Tomaszjanowski and Caroline Stauffer)
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US Commerce chief: Nothing will stop metals duties, will add protection to copper
U.S. Secretary of Commerce Howard Lutnick stated that President Donald Trump would not be able to stop his expanded 25% tariffs for steel and aluminum unless the domestic production in the United States is improved, and that Trump plans to add copper as part of his trade protections. Lutnick told Fox Business Network he would also wait until Mark Carney is fully installed as Canadian Prime Minister before negotiating on trade at a national scale. Lutnick, speaking about the meeting with Ford, said, "I think we just need to make sure that we are on the same page, get to know each other and then we will negotiate with Canada as a whole." Lutnick stated that semiconductors, pharmaceuticals, and steel are among the essential products which must be manufactured in the United States to ensure national security. "We cannot be at war and depend on steel and aluminium from another country. Lutnick stated that it was "just not reasonable". "The president wants to keep steel and aluminium in America. Let me be clear: nothing will stop this until we have a strong, domestic steel and Aluminum capability. He's also going to include copper in the mix. Trump's late February Order Lutnick To determine if tariffs should be imposed on copper imports using the same Section 232 investigation that was used to support the steel and aluminium duties, the government will conduct a Section 232 investigation. Reporting by David Lawder, Susan Heavey and Chizu Nomiyama
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Democratic lawmakers criticize the Pentagon for cancelling climate studies
Democratic lawmakers have criticized President Donald Trump’s administration for cancelling U.S. Military studies on the impacts of climate change. They claim that the move compromises national security because it ignores climate-related risks both at home and abroad. Scientists claim climate change increases the intensity and frequency hurricanes, floods and wildfires. In a previously undisclosed letter to U.S. defense secretary Pete Hegseth the lawmakers say that this translates to damage to military base, attracting U.S. soldiers to more relief missions, and allowing greater access by sea to the Arctic. In the United States, this issue is one of several that divides Republican and Democratic politicians. Trump, a Republican politician, has targeted climate change programs as part a larger effort to cut government spending. Hegseth wrote on X Sunday: "The Department of Defense does not believe in climate change crap." The Pentagon has announced that it will scrap 91 social sciences-related studies, covering topics such as global migration patterns, climate change impacts and social trends. This would save $30,000,000 in a single year. The list included canceled studies such as "Social Institutional Determinants for Vulnerability to Climate Hazards" and "Food Fights : War Narratives, Identity Reproduction and Evolving Conflicts." In a letter dated March 11, the four Democratic Senators Elizabeth Warren, Mazie Hiroo, Richard Blumenthal, and Tammy Duckworth wrote: "Your threats to reduce climate programs at DoD will put our national security at risk, putting thousands of American citizens' lives and billions of dollars in taxpayer funds at risk." The lawmakers pointed to billions of dollar damage done by U.S. military bases in the past few years. These included flooding at Offutt Air Force Base, in 2019, and storm damage caused at Andersen Air Force Base on Guam following Typhoon Mawar's strike in 2023. The U.S. military also loses training time as they respond to weather-related emergencies. They wrote: "Just last summer, over 6,500 National Guardsmen, 250 members of Army Corps of Engineers and 100 Marines mobilized for recovery efforts following Hurricanes Helene & Milton that devastated the Florida Gulf Coast. Many more responded to fires in Oregon Tennessee West Virginia Massachusetts Texas and California." The Pentagon, under the leadership of President Joe Biden during the previous administration had stated that it would include climate change risks in war simulations and military exercises. Trump's administration resigned from the U.N. board of the climate damage fund, which helps poor and vulnerable nations cope with climate-related disasters. The withdrawal of the United States from multilateral agreements is just one step taken by Trump administration. (Reporting and editing by Phil Stewart, Idrees Al; Chizu Nomiyama).
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EU to target diamonds and dental floss in order to combat U.S. tariffs
The European Union has chosen a range of U.S. goods for its counter-tariffs in the coming month, including bathrobes, diamonds and dental floss, all to raise questions about the trade policies of U.S. president Donald Trump. The European Commission has compiled a list of goods that will be subject to additional duties in response to the 25% U.S. tariffs on aluminum and steel. Here is the plan. What is the EU's response? Trump has reinstated tariffs for 2018 on semi-finished products and finished steel and aluminum, including steel pipes and tin. Washington also increased the rate on aluminum to 25%, from 10%. It has removed multiple exemptions. The tariffs are now extended to include products made of metals such as cookware, window frames and machinery. Which measures will the EU introduce first? In 2018, the EU responded to Trump's tariffs. It said that they affected 6.4 billion euro of EU metal exports and imposed duties on 2.8bn euros of U.S. imported goods. The EU was due to impose tariffs on another 3.6 billion euro of imports three years after the truce, but they were suspended when President Joe Biden reached an agreement with the bloc. The suspension is valid until March 31. These tariffs will be automatically applied on April 1. They target U.S. goods such as steel, aluminium, motorcycles, orange juice, and bourbon. The EU has said that the U.S. Tariffs will affect 8 billion Euros of EU Steel and Aluminium Exports. The countermeasures amount to 4.5 billion euro, which is a smaller value than previously due to Britain leaving the EU and a general decline in U.S. exports of the listed products. Tariff rates range from 10% to 50%. They would also be doubled to 50% for bourbons, motorbikes, and motorboats. WHICH NEW PRODUCTS ARE THE EU TARGETTING? The Commission, the EU's trade policy coordinator, has also compiled a second list of U.S. exports worth 21 billion euros. The Commission plans to reduce that to 18 billion euro worth of imports and to impose tariffs against them on April 13th. List includes: poultry, other meats, dairy products and cereals; vegetable oils and beer; wood, carpets and clothing. Also included are diamonds, chewing gum and dental floss. EU officials stated that the list was designed to include products with a high symbolic or iconic value. This would minimize the pain for the EU, and focus more on Republican states such as Louisiana (a soybean producer, and the home of House Speaker Mike Johnson), or Kansas and Nebraska (both meat and poultry producers). Argentina and Brazil are two other soybean suppliers for EU consumers. Which companies could be affected? Officials hope that a broad range of products will also encourage U.S. companies to press Washington for a reversal in its trade war. U.S. producers of the affected goods include Whirlpool , Stanley Black & Decker, Mohawk Industries , Harley-Davidson, Ralph Lauren, Tyson Foods and Archer-Daniels-Midland. In the coming two weeks, the Commission will solicit comments from business and other groups interested in the issue. The final list will then be presented to the 27 EU member states. The products on this list will be subjected to tariffs as of April 13, unless there is a "qualified majority" of 15 EU member states that opposes it. The EU said that they would match the U.S. tariffs at a later date, and increase the value to 26 billion euros. $1 = 0.9159 Euros (Reporting and editing by Toby Chopra; Additional reporting by Tiffany Vermeylen, Josephine Mason, and Philip Blenkinsop)
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Copper reaches multi-month highs on China and U.S. Tariffs
The copper price hit a multi-month high on Wednesday, as traders braced for possible U.S. Tariffs. Investor sentiment was also boosted by signs of improved demand in China and the possibility of a ceasefire in Ukraine. In official open-outcry trade, three-month copper at the London Metal Exchange gained 1.2% and reached $9,780 per metric ton. It briefly reached $9,800, the highest since October 11. U.S. Comex Copper Futures rose 2.5% to $4.89 a lb. It was at its highest level since May 24, last year. The U.S. imposed 25% tariffs on steel and aluminum on Wednesday. Donald Trump also ordered an investigation into the possibility of new tariffs for copper. This has prompted U.S. companies to stockpile. Ole Hansen is the head of commodity strategy for Saxo Bank, based in Copenhagen. "Underlying feelings have improved significantly in the past 48 hours. This is not just because of the possible truce, but also due to what happened yesterday between U.S. and Canada relations." The European stock market soared on Wednesday, after Ukraine accepted a U.S. proposal for a ceasefire. Meanwhile, Trump backed down from doubling the metals tariffs on Tuesday after Ontario suspended its plan to impose a surcharge on electricity exported to the U.S. Copper on the Shanghai Futures Exchange, which is China's top metals consumer, closed the daytime trading session 2.08% higher, on expectations of improved demand. It had earlier reached its highest level since September 30. ANZ analysts stated in a report that the fundamentals have improved, and the ANZ Downstream Copper Demand Indicator shows positive growth in particular in grid infrastructure, electric vehicles, and other areas. The recent measures to stimulate the economy are helping manufacturers ramp up production. Copper cathode stocks in Shanghai and Guangdong have continued their declines since a recent peak, due to lower imports. Zinc, which had been losing ground, reversed its losses and gained 1.8%, to reach $2,965 per ton. This was the highest official activity in almost three months. Nyrstar announced that it would cut production at its Hobart Zinc operations in Australia by 25% from April. Other metals saw a 0.6% rise in LME aluminium to $2720 per ton. Nickel rose 1.3% to $16,700; lead increased 1.1% to $2,000 and tin climbed 0.7% to $33,400. ($1 = 7.2441 Chinese Yuan) (Reporting and editing by Shailesh Kumar and Leroy Leo; Additional reporting by Amy Lv in Beijing and Lewis Jackson).
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Rubio: G7 will not discuss US "takeover" of Canada
The U.S. Secretary Of State Marco Rubio said on Wednesday that the question of how the United States will "take over Canada", which is scheduled to occur in Canada on the following day, would not be discussed during a meeting of G7 Foreign Ministers. On March 12-14, the foreign ministers of Britain, Canada France Germany Italy Japan and the United States will meet in the river resort of La Malbaie (Quebec) for the first meeting since Donald Trump's return to power. Rubio, when asked by reporters to comment on Trump's remarks about making Canada the 51st U.S. State, instead spoke about the areas of collaboration between the United States of America and Canada such as defense of North American airspace or Ukraine. The G7 will be focusing on all these things. This is the purpose of the meeting. He said that the meeting was not about taking over Canada. U.S.-Canadian relations have soured after Trump's repeated remarks about Washington's northern neighbour being its 51st U.S. State and the Republican President referring to Canadian Premier Justin Trudeau's "governor". Both neighbors are involved in a fierce trade war. Trump has increased tariffs on Canadian steel and aluminum imports, accusing them of not doing enough to stop the flow of deadly fentanyl and its precursor chemicals to the U.S. He is also moving to reorder the global trade norms to favor the United States. Rubio said Trump wasn't singling out any particular country, but was trying to develop an industrial capability in the United States as the current situation threatens U.S. security on a long-term basis. The top U.S. diplomatic official said that despite tensions, he expects to have constructive discussions with G7 allies. "I believe it's quite possible that we can do these things while at the same dealing in a productive way with our friends, allies, and partners on all other issues we work on together. Rubio stated that he expected the G7 to be a positive experience in Canada. (Reporting and editing by Andrew Heavens, Chizu Nomiyama and Humeyra Pauk)
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Bolivia imports energy in crypto amid dollar and fuel shortages
Bolivia's state-owned energy company YPFB plans to use cryptocurrency as a payment method for its energy imports, despite a severe shortage of fuel and dollars in the South American country. After years of declining natural gas exports, the country has been battling a dangerous decline in its foreign currency reserves. This has led to a fuel shortage in the country that is manifested by long lines of people at gas stations. After the government approved the use of digital assets as a way to meet demand, a spokesperson for YPFB, a state-run energy company, said that a system was in place to allow cryptocurrency to be used to buy fuel imports. The spokesperson added that "from now on, (cryptocurrency transactions) will be carried out", adding that the new buying system was designed to support national fuel subsidy in Bolivia due to a lack of hard currency. A spokesperson for the government said that YPFB has not yet used digital currency to buy energy imports but it is planned to do so. Bolivia, which was a net exporter of energy for many decades due to its vast reserves of natural gas, is now reliant upon imports, as the domestic production of gas has decreased amid a lack major new discoveries.
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South Africa will incentivise the local production of EVs
The National Treasury announced on Wednesday that South Africa would spend 1 billion rand (54.27 millions dollars) to support local production of new-energy vehicles and batteries as well as other manufacturing projects. It is home to brands like Toyota, Ford, Isuzu, Volkswagen, and Mercedes, amongst others. According to the industry, government incentives and policy intervention will encourage original equipment manufactures to invest in the production of electrical vehicles in the nation. South Africa published its Electric Vehicles White Paper (PDF) in 2023. It outlined the country's plan to transition from producing mainly internal combustion engine cars to a mixture that includes electric vehicle by 2035. The treasury stated in its annual budget review that the department of trade, industry, and mineral resources planned to implement a regional strategic minerals plan, but did not give a timeframe. Minerals such as cobalt, lithium, copper and other critical minerals are essential for products such as solar panels and electric vehicle batteries. They are also key to the global energy transition. The Treasury said that 1 billion rand would be set aside for the Industrial Development Support Programme, a scheme designed to encourage firms in certain manufacturing sectors like automotive to invest in infrastructure. The Treasury added that the purpose of the incentive was to increase local production and assembly for new-energy cars, batteries and other projects focusing on operational efficiency and competition in new manufacturing projects. It added that the incentive was expected to attract investment of 30 billion Rands from the private sector.
Britain is 'disappointed with US tariffs' but unlikely to take retaliatory action
The British government expressed its disappointment on Wednesday with the imposition of tariffs by President Donald Trump on imports of steel and aluminum, but it did not follow in the footsteps taken by other European Union member states.
Britain had hoped that it could avoid tariffs in its small steel industry, which produces specialist products used by the defence and other industries. Trump suggested last month that the two countries could reach a bilateral deal to avoid tariffs.
The British government also claimed that it should receive a special carve out because of its supply of essential goods to the U.S. construction, oil and gas sectors and defence industries.
Trump imposed 25% global tariffs on all steel and aluminum imports on Wednesday, which he claimed would reorder the global trade to the United States' benefit.
The EU has responded by announcing that it will impose counter-tariffs of 28 billion dollars worth of U.S. products, valued at 26 billion euros.
Jonathan Reynolds, Britain's Business Minister said: "It is disappointing that the U.S. imposed today global tariffs on aluminium and steel."
"We are focusing on a pragmatic and rapid approach to negotiate a wider economic deal with the U.S. in order to eliminate additional tariffs, and to benefit UK business and our economy."
An official in Britain said that the government will not impose trade tariffs as a retaliation against the United States, but instead focus on obtaining an exemption.
The British steel industry's head, UK Steel, asked if Trump understood that Britain is an "ally and not a enemy".
"Our steel industry is not a danger to the U.S. but a partner of key customers who share the same values and goals in tackling global overcapacity, and tackling unfair trading," Director General Gareth Stace stated.
Steel UK stated that the U.S. is Britain's second-most important steel export market after the EU. The U.S. accounts for 9% by value of UK steel exports and 7% by quantity.
Reynolds stated that the government is working with the companies affected by these measures, and will investigate any further steps needed to protect UK manufacturers.
Trump's increased duties on steel and aluminum imports went into effect on Wednesday, as previous exemptions, duty free quotas, and product exclusions had expired. (Reporting from Kate Holton, London; and Gnaneshwarrajan, Bengaluru. Editing by Jacqueline Wong and Lincoln Feast. Christina Fincher is the editor.)
(source: Reuters)