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Trump warns EU of retaliatory duties, saying Irish tax policies attracted US firms
Donald Trump, the U.S. president, promised to act on Wednesday in response to the European Union’s threat to impose counter-tariffs on U.S. products worth 28 billion euros (26 billion dollars) from next month. This comes after Trump implemented tariffs blanket on steel and aluminium imports. Trump said to reporters, "Of Course I Will Respond," at the beginning of a meeting in the Oval Office with Irish Prime Minister Micheal Mart. He said Ireland was a member of Europe and that it took advantage of America. Trump claimed that Ireland's tax policies had been used to lure pharmaceutical companies and other businesses from the United States. However, reciprocal tariffs by the United States would help rebuild U.S. Manufacturing. He said that the U.S. tax policies were to blame for allowing U.S. companies to relocate to Ireland. He said: "I have great admiration for Ireland, but the United States should not have allowed it to happen." Trump's increased duties on all U.S. imports of steel and aluminum took effect on March 21, escalating a global economic war. Canada and Europe retaliated swiftly. Trump's decision to increase protections for American producers of steel and aluminum restores 25% tariffs on all metal imports, and extends duties to hundreds downstream products. Canada, which is the largest foreign supplier of aluminum and steel to the United States announced 25% retaliatory duties on these metals, along with computers, sporting equipment, and other products totaling C$29.8 Billion. Canada's central banks also cut interest rates in order to prepare for the economic damage. The European Commission announced that it will impose counter-tariffs on U.S. products worth up to 28 billion dollars (26 billion euros) next month.
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The chair of the Bank Climate Coalition wants to change rules
After the withdrawal of many of the largest banks, and in light of the fact that the real economy is not able to meet more ambitious climate change action, the chair of the world's leading coalition for banking climate policy has asked its members about possible changes. Shargiil Bahir, Chief Sustainability officer and Executive Vice-President at First Abu Dhabi Bank, said that the decision, which was announced to members on Tuesday evening, reflected also recent developments in science and policy, methodology and regulation. He refused to provide details on the proposals, but, under condition of anonymity a source who had direct knowledge said that they included dropping the need to align lending to a goal to cap global warming at 1,5 degrees Celsius (3.6 degree Fahrenheit), above the preindustrial average. Since more than a decade, the Net Zero Banking Alliance (NZBA), which is a group of climate-sceptics in the United States, has been reviewing its membership rules. However, since Donald Trump's second term as president was confirmed by the U.S. Congress and the election of his successor to the office. Before Trump's inauguration, the six largest U.S. banking institutions left the alliance. They were joined by Australian, Canadian and Japanese lenders. Morgan Stanley, a U.S. Investment Bank, was the first major bank to lower their expectations in October for the impact they hoped to achieve by reducing loan-book emission. Bashir stated that "NZBA is constantly evolving its offering to respond to changing external conditions and member needs". Since NZBA's founding four years ago, external factors have changed rapidly in ways that affect the banking industry’s ability to assist clients to achieve net-zero. Barbara Lewis edited this article.
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Mexican President says he will wait to respond before retaliating against US metals tariffs
Mexico's president Claudia Sheinbaum said on Wednesday that her government would not immediately retaliate against new 25% tariffs placed by the U.S. for all steel and aluminium imports, but instead wait to see if a resolution can be reached in the next few weeks. The increased tariffs by U.S. president Donald Trump on all imports of steel and aluminum took effect with "no exceptions or exclusions", intensifying the global trade conflict. Sheinbaum told her morning press conference that she would wait until the 2nd of April to see if our definitions of reciprocal tariffs were also applied. Trump argues that tariffs are necessary to restore manufacturing capacity in the United States and create jobs. Mexican officials said that the tariffs were unjustified and pointed to data showing the U.S. has a surplus in steel and aluminum with Mexico. Tariffs are a threat to an economy already in a fragile state. Mexico is on the brink of slipping into a technical recession, and it has the largest budget deficit since 1980. Sheinbaum, who has been a skilled negotiator for Trump and achieved a pause in tariffs on other items, may not be able to achieve the same result with steel and aluminum. Trump implemented a 25% steel tariff and a 10% aluminum tariff in 2018, during his first term. The tariffs increased U.S. employment and production in these industries. However, the negative downstream effects were offset by the positive upstream effects. Trump will lift the tariffs against Mexico and Canada in mid-2019. Mexico's Economy Minister Marcelo Ebrard had previously called the tariffs unreasonable. It's unfair, according to the arguments of President Trump. We have, again, more imports of (steel than exports", Ebrard stated at a February press conference. Mexico's steel industry Cancero warned that the tariffs will hit $2.1 billion worth of Mexican steel exports and called for retaliatory duties on U.S. Steel. (Reporting and editing by David Alire Garcia)
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EPA tightens up regulation on US waterways
The U.S. Environmental Protection Agency announced on Wednesday that it would narrow the definitions of waters that could be federally regulated in order to comply with 2023 Supreme Court ruling. Republican legislators from agricultural states applauded this move. EPA Administrator Lee Zeldin stated that the agency would work to create a simple definition "that will stand the test of time". He said that the previous administration's definition of "waters of the United States" placed unfair burdens on American citizens and increased the cost of doing businesses. This announcement is part of what Zeldin called a "ping-pong" of policy changes around the regulation and protection of "waters in the United States", which are protected by the 1972 Clean Water Act against pollutants such as fertilizers, pesticides and mining waste. The EPA tried to expand its regulatory authority over wetlands and streams under the Obama and Biden Administrations. However, this was met with opposition from the industry, agriculture and Republican legislators who called it a sweeping move. The Sackett vs. EPA 2023 case established a standard that limits the ability of the EPA and Army Corps of Engineers to regulate certain types of wetlands which do not connect to navigable waterways and streams. Shelley Moore Capito of West Virginia, the chairwoman of the Senate Environment Committee, said: "By delivering a framework which is both clear, and legally sound and refining key terms, as well as rescinding previous vague and inconsistent guidelines, we bring predictability to all those who depend on clear, workable, water regulations." Environmental groups have warned against a narrowing of the definition of waterways that are regulated. This would negatively impact on wetland conservation.
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East African bloc calls on South Sudan to release arrested officials
As part of their efforts to prevent the recent escalating tensions between factions from turning into a new war, a group of East African countries called on South Sudan's Government to release officials detained and lift security measures. South Sudan is officially at peace after a 2018 deal that ended a five year civil war in which forces loyal to President Salvakiir fought against those loyal to First Vice President Riek Machar, and nearly 400,000 died. The relationship between the two rivals who have dominated the political scene of the oil producer for decades remains strained. Many people believe that the arrest of Machar's allies, including a deputy chief of the military and two ministers, in Juba, the capital, last week, along with the deadly clashes that erupted around a strategically important northern town, have jeopardized the peace agreement. The Intergovernmental Authority on Development, a group of eight East African countries, held a virtual head of state meeting on Tuesday to try and avert a crisis in South Sudan. Workneh Gebeyhu, executive secretary of IGAD, said in a report that "the government...is urged to release detained officials as soon as possible unless credible evidence warrants transparent legal proceedings conducted in accordance with the due process." The report also called for the restoration of "standard arrangements" in terms of security. Michael Makuei did not respond immediately to a comment request. At the time of the arrest, he had stated that the officials were "in conflict with the law". The government accuses Machar-aligned forces of working with the White Army, a loosely organised group largely from Machar's Nuer group, to attack a military base near Nasir, in the north, on March 4. In recent weeks, the White Army and the national forces have been involved in heavy clashes. Machar's Party has denied these accusations. Machar's spokesperson confirmed that one of the eight ministers initially detained and another eight officials at lower levels have been released. However, 20 other people remain in custody. Last week, South Sudanese soldiers were also stationed around Machar's home, though he was able to get to his office. His spokesperson confirmed this. Machar's spokeswoman said on Wednesday that another lawmaker who was allied with the vice president, had been arrested as he traveled to Parliament.
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Algoma Steel suspends steel exports from Canada to the US, CEO states
Michael Garcia, CEO of Algoma Steel, said that the company has suspended exports from Canada to America until Thursday when Canadian Ministers will meet with their U.S. counterparts at Washington. Garcia, in an interview, said that the tariffs on U.S. Steel will allow Algoma to gain new Canadian customers. In response to US President Donald Trump’s tariffs against Canadian steel and aluminium, Canada, which is the largest foreign supplier of steel to the United States announced 25% retaliatory duties on goods such as steel, aluminum and computers, sporting equipment, and other products totaling C$29.8 Billion. Garcia stated that the U.S. steel is now more expensive, and this gives Canadian steel producers an opportunity to serve new customers with Canadian steel. Steel producers in Canada are vocal about the need for countermeasures against tariffs on Canadian steel, as US steel exports to Canada amounting to approximately 3.5 million tonnes. The Toronto Stock Exchange saw shares of the Canadian Steel Producer up 2.6% at midday. On Thursday, U.S. Secretary of Commerce Howard Lutnick will meet with Canadian government officials. Garcia said that Algoma would make a decision on its export suspension after the meeting to determine if tariffs will be adjusted. Steel producers in Canada have expressed concern that the tariffs would cause serious problems for Canadian workers, and asked the government to help the industry. Algoma laid off 20 workers in anticipation of the tariffs. It said its decision to cut jobs will be based on the new Canadian customers it has, the steel market price and the length of the tariffs. Garcia stated that "it is not good for business and it is concerning in the long run." (Reporting and editing by Caroline Stauffer, Mark Porter, and Divyarajagopal)
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IMF: Egypt will cut fuel subsidies by December to cost recovery levels
The International Monetary Fund (IMF) said that Egypt is committed to reducing its energy subsidies in order to achieve cost recovery by the end of December, as it works towards reducing a large current account deficit. Ivanna Hollar is the IMF mission head for Egypt. She told reporters that the IMF's commitment to reduce subsidies made in summer 2024 remained unchanged. The authorities have committed themselves to bringing the cost of fuel products up to cost recovery levels by December 2025. This commitment has not been altered and is still the current commitment to bring retail fuel prices up to cost recovery levels", she said. IMF approved the disbursement to Egypt of $1.2 billion on Monday following the completion of the 4th review of its $8 billion economic program. Egypt was allowed to waive the primary budget surplus goal. Egypt's current-account deficit grew to 5.4% during the fiscal year 2023/24, which ended on June 30. Hollar stated that "we still expect the current accounts to be relatively high this year but for the next fiscal years, 2025/26 to come down to around 3.5% of GDP". She said that the Suez Canal obstructions were not the only factor contributing to the current account deficit, but the difficult energy sector was also a contributing factor. Suez Canal fees, which are a major source of foreign currency for the country, fell to $931 million from $2.40billion a year ago, as a result of the diverted shipping caused by the Gaza war. Karim Badawi, the petroleum minister, said that Egypt spends around 10 billion Egyptian pounds ($197 millions) per month on fuel subsidies despite raising prices three times in the past year. In a televised statement on Wednesday, the Prime Minister Mostafa Mdbouly stated that the government continued its financial reform program. The government could not sell diesel at 100% cost but it would continue to subventionize the fuel to some extent. He said that by the end of this year, the government would have eliminated the financial burden caused by petroleum subsidies. $1 = 50.6500 Egyptian Pounds (Reporting and Editing by Mark Potter and Alexandra Hudson; Reporting by Momen Said atallah)
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Who won Greenland’s parliamentary election?
Greenland's business-friendly opposition party, Demokraatit The Tuesday Parliament Election The debates about self-rule were dominated by the pledge of U.S. president Donald Trump to seize control of Greenland. Greenland was formally incorporated into the Kingdom of Denmark as a territory in 1953. Copenhagen controlled foreign affairs, defence, and monetary policies. In 2009, the island was granted the right to full independence by a referendum. However, it has not done so. WHAT WERE RESULTS OF THE VOTING? Around 40,500 of Greenland’s 57,000 residents were eligible to cast their vote. A little over 28600 people voted. Inatsisartut is the Greenland parliament. There are 31 seats, and 16 are required to form a majority. Five of the six parties who ran for office won seats. Social liberals are a group of people who believe in social equality. Demokraatit was the party of business, securing 29.9% votes. This is up from the 9.1% votes in 2021. It also beat out the Naleraq, the party of opposition, who favour rapid independence and received 24.5% votes. Demokraatit Demokraatit envisages a gradual independence from Denmark but warns against taking premature action in order to protect the economy and people from a possible decline in living standards. The party is in favor of an independent Greenland, with a market-based economy. Demokraatit now has ten seats, up from three before the election. Jens-Frederik Nielson, the party leader, received 4,850 personal votes. Naleraq The left-wing Naleraq party, which advocates a rapid transition to independence, was the second largest party in the election held on Tuesday. Naleraq said that Greenland's newfound sovereignty will create business opportunities and he wants to expand opportunities in industries like fishing, which is responsible for over 95% of Greenland's exports. It also stated that it wanted to pursue a defense agreement with the United States. Greenland could opt for a "free association" under which Greenland receives U.S. protection and support in exchange for military rights without becoming a U.S. Territory. You could also explore this option with Denmark or another country. Naleraq has eight seats in the parliament. In the 2021 elections, it won four seats and then added another when a member of IA joined. In 2025 Naleraq expelled the lawmaker who later became a non-aligned parliament member. Inuit Ataqatigiit, Greenland’s left-leaning socialist IA and the current leader, Mute Egede advocate for an economically independent Greenland but have not yet presented a plan on how to do so. IA is against mining uranium or other radioactive material due to environmental risks. Prior to the elections, the party had 11 seats in the parliament and received over 15% less votes than the 2021 elections. IA now has seven mandates. IA warned that it would not rush to vote for independence, citing possible economic and welfare consequences. Siumut Erik Jensen leads the social democratic Siumut party, which supports a progressive succession in Denmark. The party has suggested a referendum for the next four years but recently backed off. As Greenland gains independence, the party wants to reduce the annual economic contribution from Denmark of $17.500 per resident. Siumut won four seats in Greenland’s parliament. The party was a part of the former ruling coalition, along with IA. It had previously held 10 mandates. Atassut Atassut is a conservative centre-right party led by Aqqalu Jerimiassen. It will retain its two representatives in parliament following the elections. The party is in favor of unity with Denmark and opposes an unplanned transition to independence. It also believes that Greenland has not yet reached the stage where it can be independent.
Satellite data shows that copper smelting has declined for the first four-month period.
Satellite data showed that global copper smelting dropped for the first four-month period in February, due to lower activity in plants outside of China's leading copper refiner.
Earth-i, a specialist in observational data collection, tracks smelters that represent up to 95 percent of global production. It sells this data to fund managers and traders, as well as to miners and traders.
The company stated in a press release that an average 8.8% of the global copper smelter monitoring capacity was inactive last month. This is up from 8.6% of January. This change was primarily driven by Europe, Asia (excluding China), and Oceania.
Earth-i stated that "smelting activity is still strong, despite the current market conditions in terms of treatment and refining costs (TC/RCs)."
Smelter inactivity, which accounts for over 40% of the capacity in China covered by the services, has fallen for the fourth month in a row to 5,5%, its lowest level since March 2023.
The TC/RCs are at record lows, both for the benchmark annual terms and the spot market terms. Both of these terms are now marked in negative territory.
Due to increased smelting capacity, the Chinese copper smelters are experiencing a shortage of copper concentrate. (Reporting and editing by Tomasz Jánowski; Reporting by Polina Deitt)
(source: Reuters)