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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 he may increase duties on some of its 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 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 is another 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 ordered in the past but not 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. Once you turn the switch on, it is very hard to reverse. Each company will be nervous about making a decision. 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 AND MEDICAL ELECTRICAL EQUIPMENT Tariffs are affecting mainly our exports to the U.S. from our factory in Mexico. 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, to move our capacities if customs duties remain in place for a longer period of time. 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 "The announcement seems to have had a positive effect on local production at first glance. 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-positioned to maintain our leadership with 30 factories in the U.S., and as the leader of the market." ANDERS VINDEGG HEAD OF MEDIA RELATIONS, ALUMINIUM HYDRO PRODUCER "We work actively from Norway as well as in Brussels, the EU to inform and work actively with organisations and other initiatives that we are a 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. NOBUHIRO TORII, PRESIDENT OF SUNTORY "We will try to sell locally and produce... that's the key with tariffs." ASSOCIATIONS OF WORKERS AND PARTICIPANTS COPA-COGECA EU FARMING GROUPS 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 and US Policymakers to exhaust all diplomatic efforts within the next few days." Both sides must be constructive in addressing grievances, without jeopardizing trade benefits. ANTHONY BRUN, HEAD OF FRENCH GROWERS ASSOCIATION (UGVC) "While one could have expected much higher tariffs, 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 "European automakers have committed to be active in the U.S. and make an important contribution to its economy. They account for about half a million auto-related jobs, will export over 750,000 cars to the U.S. by 2024 and actively invest in local communities in order to foster economic prosperity." "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 an economic dead end that will result in welfare losses on both sides of Atlantic. WOLFGANG NIEDERMARK EXECUTIVE COMMITTEE MEMBER GERMANY’S MAIN INDUSTRY ASSOCATION BDI The justification of this protectionist escalation has no rational basis. It is a threat to our export-oriented businesses and threatens prosperity, stability and jobs in the United States and abroad. The EU should now coordinate its response and strengthen its alliances, with other major trading partners. It is important to coordinate your response in order to deal with the changing flows of international trade. Reporting by Juby B. Babu from Mexico City; Vallari Srivastava in San Francisco; Nick Brown in New York; Caroline Humer and Abhirup Roy at Bengaluru. Editing by Sayantani Ghosh.
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Pakistan cuts power prices as a sign of stabilising economy
Shehbaz sharif, the Prime Minister, announced on Thursday that Pakistan would cut electricity prices for industrial and domestic users. This is a sign that the economy has recovered from its near-default. The International Monetary Fund intervened to stabilize the Asian country's financial situation with a standby agreement in 2023, and then a bailout of $7 billion last year. Sharif said that it was difficult to convince the IMF to accept a reduction in electricity tariffs, despite the fiscal consolidation mandated by the bailout. He said at an event in Islamabad that he couldn't describe the efforts that were involved. The government reforms to the power sector, he added, made the reductions possible. He also said that Pakistan will use the money it saves from the lower oil prices in the world to invest in the power sector. After several price increases over the last couple of years, Pakistanis will feel relieved by lower power prices. Sharif announced that the tariff would be reduced by 7.41 rupees (US$0.0264) on average per kilowatt hour for domestic users and by 7.59 rupees (US$0.0264) on average per kilowatt hour for industrial users to an average of 40.60 rupees. Pakistan's $350-billion economy has struggled since May 2023 when the inflation rate reached a record high of 38.50%. Growth is now negative, while reserves are down to a few weeks worth of controlled imports and interest rates have risen to 22.2%. Sharif stated that "we have succeeded in bringing the inflation to single-digits", adding that the almost 10-percentage point reduction in the main interest rate of the country in the past year will help businesses grow.
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Trump's policies will spur central banks to buy more gold
The central banks will likely continue to support gold's spectacular rally this year. They are buying to diversify their reserves away from dollars due to the risks posed by Donald Trump's policies. The Russian invasion of Ukraine 2022 was the catalyst that led to central banks buying more than 1,000 tons of gold per year. This is twice as much as they bought in the last decade. On Thursday, spot gold reached its highest ever price of $3,167.57 per troy ounce. This represents a 19% increase since 2025's start and a 71% jump since 2022's end. According to estimates from the World Gold Council, when Trump won in the U.S. elections, central bank purchases increased 54% on an annual basis to 333 tonnes. The central banks of emerging markets currently hold 10% of their assets as gold. "They should hold at least 30% of their assets as gold," BofA's commodity strategist Michael Widmer said. He added that the uncertainty regarding U.S. policy will continue for several years. He said that "from the central bank perspective, (uncertainty), means less incentive to include Treasuries in portfolios and more incentives to de-dollarise," it. Gold and U.S. Treasury bonds, as well as the dollars required to purchase them, have been competing for years with each other in terms of safe-haven status. Trump's tariffs and trade wars have upended world order. His approach to the Ukraine war, as well as his disregard for and questioning decades-old European alliances has also upset the global order. A source who sells gold to central bankers said that central banks with (less) gold would look to buy more. The demand for gold from central banks this year may be at its highest level in decades. Gold's value as a wealth store has also been boosted by fears of inflationary pressures resulting from companies passing tariffs on to consumers to protect their profits margins, as well as the desire of workers to earn more. Macquarie analysts stated in a recent report that investors and official institutions are more willing to pay gold for its lack credit risk or counterparty risks. Central banks account for 23 percent of global gold consumption. They are the third-largest category of gold demand after the investment and jewellery sectors. They are usually price sensitive and buy when prices drop, while reducing purchases when they rise. Analysts expect gold prices to continue rising, so they won't delay buying. The central banks might choose to conceal their purchases as Trump has threatened to impose tariffs on any countries that are actively dedollarising. The official numbers reported to IMF only reflect 34% of WGC's total central bank gold consumption estimate for 2024. WGC data shows that central banks added a net of 44 tons of gold to their reserves between January and February, with Poland being the biggest buyers. (Reporting and editing by Pratima Deai, Joe Bavier and Polina Devitt)
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Trump's tariffs cause a global stock and dollar crash
The dollar, oil and world stocks all fell on Thursday after Donald Trump's new U.S. tariffs sparked widespread fears of global recession. Investors sought safe havens like the yen and bonds. The new 10% baseline tariff on imported products, plus the additional eye-watering'reciprocal tariffs' on dozens countries Trump claimed had unfair trade barriers left traders rattled. Brussels and other capitals expressed outrage over the new reciprocal 20% levy imposed on the EU 27-country bloc. Wall Street futures fell 3% before what was expected to a be turbulent U.S. start later. The dollar's 2% drop had it on track for its worst day since November 2022. Tokyo's worst week since nearly two years was in Asia, where the tariffs were most severe. Tokyo dropped by 2.7%. JPMorgan analysts said that the tariffs are "significantly higher" than what was expected in the worst-case scenario. Fitch, a credit rating agency, warned that they would 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 knock 1%-1.5% of U.S. economic growth this year. Olu Sonola, a Fitch analyst, said that "many countries are likely to end up in recession." If this tariff rate is maintained for a long time, you can forget about most forecasts. The rush for ultra-safe government securities that guarantee income has driven U.S. Treasury rates down to around 4%. Germany's 10-year rate, the European benchmark, fell by 8.5 basis points to 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. This benefits bonds. S&P 500 futures and Nasdaq were both down more than 3% before what was expected to a treacherous Wall Street start. Apple has been marked down by 6.5% due to the tariffs on China, the country where most of Apple's production is based. Amazon.com dropped over 5% and Microsoft was down 1.8%, while AI poster-child Nvidia fell 3.5%. As worries have grown, trillions of dollars have been wiped from the 'Magnificent Seven" tech giants in just one year. CHINA FOCUS Trump's tariffs have impacted Asia especially hard. China received a tariff of 34%, Japan 24%, South Korea 25 % and Vietnam 46%. In response, Vietnamese stocks fell 6.7% and Nike Adidas Puma all heavily rely on Vietnamese and other Asian producers. Investors sold exposure to global growth as the risk-sensitive Australian dollar fell. Brent, which is a proxy of economic activity, fell as much as 4% in London, 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 reach 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 Adam Hetts is the global head of portfolio management and multi-assets at Janus Henderson Investors. He said that eye-watering tariffs applied on a country by country basis are a "negotiation strategy" which will keep the markets on edge indefinitely. China held its currency fairly steady. The yuan dropped only 0.4%, despite tariffs on Chinese exports exceeding 50% and the impact to Vietnam, which was seen as closing down a popular route to work around the tariffs. 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, strategist at Deutsche Bank, said that China should be the main focus of attention in the coming days. He asked: "Will China wait for trade talks... or will it absorb this shock?," "Or will China try to 'export the shock'... via devaluation of yuan?"
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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. Here are some reactions from executives of companies, unions and trade associations. Companies DANISH SHIPPING GIANT MAERSK "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 a rise in the demand for bonded warehouses as customers want to delay clearing their goods until they have more certainty. GERMAN PACKAGING & MEDICAL EQUIPMENT MANUFACTURE GERRESHEIMER 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 "At first glance, 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. NORWEGIAN 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. NOBUHIRO TORII, PRESIDENT OF SUNTORY "We will try to sell locally and produce... that's the key with tariffs." ASSOCIATIONS OF WORKERS AND ASSOCIATIONS 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 "European automakers have committed to be active in the U.S. and make an important contribution to its economy. They account for about half a million auto-related jobs, will export over 750,000 cars to the U.S. by 2024 and actively invest in local communities in order to foster economic prosperity." "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's an economic dead end that will result in welfare losses on both sides of Atlantic. GIOVANNA CEOLINI HEAD OF CONFINDUSTRIA ACCESSORI - MODA, REPRESENTING ITALIAN FOOTWEAR AND LEATHER, FUR, AND TANNERY INDUSTRIES We are worried that there will be a decline in demand for our products. It will depend on how willing Americans are to pay more. WOLFGANG NIEDERMARK EXECUTIVE COMMITTEE MEMBER, GERMANY’S MAIN INDUSTRY ASSOCATION BDI The justification of this protectionist escalation has no rational basis. It is a threat to our export-oriented businesses and threatens prosperity, stability and jobs in the United States and abroad. The EU should now coordinate its response and strengthen its alliances, with other major trading partners. "A coordinated response is needed to counter the changing flows of international trade." SCOTT WHITAKER, CEO, ADVAMED "These broad-based tariffs would be similar to an excise duty." R&D would be the most immediate and direct victim, as it threatens America's leadership in medtech innovation. Tariffs would cost U.S. workers, increase health care costs and hinder future medical progress." CHRIS VITALE, UAW VETERAN WHO RETIRED FROM STELLANTIS, ATTENDED TRUMP'S TARIFF ANNOUNCEMENT IN PERSON The president's words were reminiscent of what I had been saying for years. It was amazing to see him use the same words. Reporting by Juby B. Babu from Mexico City; Vallari Srivastava and Neil Kanatt in San Francisco; Abhirup Roy and Caroline Humer, Nick Brown, and Alessandro Parodi, in Gdansk. Editing by Sayantani Ghosh and Shounak Dasgupta.
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Leonardo, Enel, and Ansaldo in Italy reach agreement on joint nuclear venture
Gilberto Pichetto Fratin, Italy's Minister of Energy, announced on Thursday that Leonardo - a defence company -, Enel - a utility – and Ansaldo Energia – a power generation company – have agreed to form a company to investigate the use nuclear energy. Pichetto, speaking at a conference held in Milan, said that Enel will contribute its expertise to the management of nuclear power plants in Spain while Leonardo can explore the use nuclear energy for the military. "In its first phase, Enel’s head of nuclear innovations, Luca Mastrantonio will concentrate on a feasibility report to select the best technology in nuclear energy," he said. The conservative government of Italy approved earlier this year a law that paved the way for a return to nuclear power, which was prohibited by referendum in 1987. Pichetto, who spoke at the conference via videolink, said that "the regulatory framework is likely to be finished in two and half years." The Italian government says that small modular reactors are the best option for a return of nuclear power, but critics claim it will take over 10 years before they're ready. Francesca Landini is the reporter. Alvise Armllini and Mark Potter edited the article.
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Sources say that OPEC+ Ministers are seen to be sticking to their plans for further increases in oil production.
Two OPEC+ sources told reporters on Thursday that a meeting of eight top ministers in OPEC+ is likely to keep the oil production policy unchanged. This calls for gradual increases in oil output from April. One source said that the talks started shortly after 0900 GMT. One source stated that the ministers will likely emphasize the importance of adhering to the oil production targets. Record Kazakhstan output Sources have said that the move has angered other members, including Saudi Arabia, which is the top producer in the group. OPEC+ has urged the Central Asian nation, as well as other members of the group, to cut further to compensate for excessive production. In May, eight members of OPEC+ (Organization of Petroleum Exporting Countries plus allies, led by Russia) are expected to increase oil production by 135,000 barrels a day. Both sources said that the group was expected to move forward with this plan. This follows similar comments made by other OPEC+ delegates on Tuesday and on Wednesday. The May increase is part of a plan that Russia, Saudi Arabia and the UAE have agreed to implement in order to slowly unwind their latest output cut of 2,2 million bpd. This was implemented this month. OPEC+ has also agreed to cut 3.65 million bpd in other production until the end next year. Reporting by Alex Lawler and Olesya Astakhova. Editing by Louise Heavens.
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U.S. cryptos fall as Trump's tariffs shock markets
U.S. crypto-stocks declined in premarket trade 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 4%. Major bitcoin holders Strategy also dropped by 3%. MARA Holdings fell about 4%. Riot Platforms dropped about 5%. Bitfarms lost 6%. The wide losses show the impact of tariffs on a variety of asset classes. Bitcoin, the largest cryptocurrency, fell 2.3% while ether plunged 3.3%. Even though Trump's 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 affect companies. Some analysts still said that the changes were not as severe as other industries. The price action highlights the hyper-democratic nature of crypto, which allows investors to hedge against macroeconomic uncertainty. David Hernandez, a crypto investment specialist with 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)
JPMorgan says that tariffs will have a'meaningful impact' on over a third EM companies

Analysts at JPMorgan estimate that more than a third (35%) of emerging market firms will be "significantly" affected by U.S. tariffs once they are implemented.
Taking into account the possibility that Chinese and Mexican companies would be hard hit, they estimated that 36 percent of the over 750 firms in the closely watched CEMBI EM Corporate Debt Index by the bank would fall under this bracket. In that bracket, 16% of companies could experience a "significant impact".
The 36% figure was described as "not negligible" by the analysts, although they did point out that over half of the companies in the index may only be "minimally " affected.
CEMBI's index includes 6,3% of companies from China, and 4,3% from Mexico. A breakdown of the sectors most affected by the CEMBI shows that 9% of firms are industrial and 6.5% are metals and mining.
JPMorgan's study also found that the average spread or interest rate premium that investors require to hold EM debt does not currently indicate that markets are pricing the type of tariffs that could cause a U.S. economic recession.
The spread is now 226 basis point, up from 190 in recent weeks. However, it's still over 100 basis points lower than its average post-2010 of 320 basis point.
The spread could increase to close to 300 basis points if recession fears start to grow, as it did in 2018, when U.S. president Donald Trump sparked the first trade tensions.
The CEMBI spread widened by 132 basis points or 60% in just nine months. This was higher than the spreads on EM sovereign debt and U.S. Corporate Credit spreads.
The weight of Asia's exposed sectors is now 21%. This is a smaller number than the previous time, when it was 35%. The slightly higher weighting of industrials has been more than offset by the lower contribution of the commodities sector.
CEMBI is made up of firms from the region, which make up a little over 40%. It has a large group of tech exporters who may be affected by tariffs.
Mexico is the most vulnerable country in Latin America. This is not surprising, given that more than 80% of Mexico’s exports go to the U.S. Other major economies, such as Brazil, should be less at risk.
JPMorgan published a report on Wednesday that said: "There will be natural differentiation between countries in terms sectors that are more or less affected, and those with further mitigating factor such as U.S. Operations."
(source: Reuters)