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Mexico tries to avoid tariff retaliation against the US but does not rule them out
The Mexican president Claudia Sheinbaum stated on Monday that her government would prefer to avoid imposing tariffs against the United States as a response to President Donald Trump’s tariff plans. However, she did not rule them out. Sheinbaum called it a great success that Mexico, which exports nearly 80% of all its goods to the United States was not on Trump's list last week of tariffs across the board. Mexico still faces the 25% tariffs that Trump imposed on steel, aluminium, and automobiles as well as goods that don't comply with regional USMCA trade agreement. Sheinbaum stated in a press conference that Sheinbaum would prefer to avoid reciprocal tariffs as much as possible. She said that the Economy Minister Marcelo Ebrard will travel to Washington, D.C. to meet with U.S. government officials as he did in recent weeks. Sheinbaum stated that a 25% retaliatory duty on U.S. aluminum and steel shipments would "represent price increases in Mexico." She added, "We don't rule it out but prefer to continue the dialogue." Mexican officials said that U.S. tariffs on steel and aluminum are not justified, as Mexico imports in this sector more from the U.S. The peso, and the main stock index of the country, had fallen more than 1% at mid-morning Monday. This was part of an overall market decline as Trump threatened further tariffs against China. (Reporting and editing by Anthony Esposito, Rod Nickel and Kylie Madry)
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South Sudan: US visas revoked due to refusal of entry to non citizen
South Sudan stated on Monday that the U.S. decided to revoke visas for South Sudanese nationals because Juba refused to accept a deportee of another nationality. The U.S. announced on Saturday that it will cancel all visas for South Sudanese passport-holders because South Sudan has refused to accept its repatriated citizen's return. Juba's Foreign Ministry said that the deportee from the Democratic Republic of Congo was denied entry to South Sudan by South Sudanese officials. He claimed in an interview with immigration at the Juba Airport that he had been forced there. "Comprehensive Verification Processes confirmed that this individual was a citizen of the Democratic Republic of Congo." According to immigration protocols, the individual was not allowed entry and returned to his sending country for further treatment. The Government regrets the fact that, despite a long history of collaboration and partnerships, South Sudan is now facing a widespread revocation of its visas due to an isolated incident in which a person who was not South Sudanese misrepresented himself. The Trump administration in the United States has taken aggressive steps to increase immigration enforcement. This includes repatriating people who are deemed to have entered the U.S. unlawfully. Last week, African Union mediators visited South Sudan to hold talks aimed at preventing a civil war after the First Vice-President Riek Machar had been placed under house arrest. South Sudan's President Salva Kiir has accused Machar of stirring up a new revolt. Machar was a long-time rival and led rebel forces in a war from 2013 to 2018 that resulted in the deaths of hundreds of thousands. (Reporting, Writing and Editing by George Obulutsa)
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Stocks continue to fall; Trump threatens more tariffs on China if they don't back down
The dollar and bond yields increased on Monday, as major stock indexes continued to fall in volatile trading. U.S. president Donald Trump announced that he would impose an extra 50% tariff on China should Beijing not remove its retaliatory duties on the United States. The White House also denied a report saying that Trump was considering a 90 day pause on tariffs for all nations except China. The White House called the report "fake" news, but it briefly boosted U.S. stock prices. The markets were volatile amid changing headlines and U.S. stock prices remained far from their day's lows. You can tell that shorts are tense today. They're watching every turn for any possible Fed intervention, tariff suspension, or trade agreement. This shows how short-lived the current market turmoil is expected to be, said Jamie Cox of Harris Financial Group, Richmond, Virginia. The traders bet that the recession would increase. Federal Reserve Interest rates could be cut as early as May. Futures markets have already priced in nearly five quarter-point reductions in U.S. interest rates this year. Stocks plunged at the start of the day, and S&P 500 was on track to confirm the bear market as Trump showed no signs of backing down from his tariff plans. The stock market dropped sharply after the announcement of tariffs. The Dow Jones Industrial Average dropped 629.33, or 1.6%, to 37.685.53, while the S&P 500 fell 56.14, or 1.14% to 5,016.43, and the Nasdaq Composite declined 129.97, or 0.8%, at 15,450.15. The MSCI index of global stocks fell by 23.61 points or 3.09% to 740.68. Investors were also forced to sell, and the pain spread to European stocks. Recent market darlings like defense shares were particularly affected. The pan-European STOXX 600 fell by 4.54%. The Hang Seng index in Hong Kong fell 13% on a single day, the biggest drop since 1997. In mainland China, the blue-chip CSI 300 was down 7%. It only found a bottom when the state media announced that China's sovereign funds Central Huijin were buyers. Treasury yields increased. Benchmark 10-year notes yields rose 12.8 basis points in the last hour to 4.119%. On Friday, they fell to 3.86%, their lowest level since October 4. The yields on two-year interest-sensitive bonds rose by 2.9 basis points, to 3.699%. Earlier, they had reached 3.435% - the lowest level since September 2022. Dollar also rose, and oil prices fell due to a more gloomy outlook for growth. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and others) rose by 0.81%, while the euro fell by 0.37%, at $1.0914. The dollar gained 0.69% against the Japanese yen to reach 147.92. U.S. crude dropped 1.84%, to $60.84 per barrel. Brent was down to $64.41 a barrel on the same day.
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Greenland's newly elected parliament meets for the first time under Trump's pressure
Greenland’s new parliament met for the first day on Monday following a general elections in March. This was amid the repeated interest expressed by U.S. president Donald Trump to take control of the semi-autonomous Danish Island. Jens-Frederik Nielsen (33), who called for unity in the face of external pressures after his Demokraatit party won the March elections, became the youngest Prime Minister of Greenland. He will now have to deal with the challenges presented by Trump's ambitious plans. "It's never been more crucial to stand together in support of our country and stable government." According to KNR, Nielsen stated that he was pleased with the broad coalition of 75% votes. Nielsen stated last week that Greenland will strengthen its ties with Denmark. He called Denmark "Greenland’s closest partner" until the Arctic Island could become a sovereign country. He said that Greenland, a semi-autonomous Danish region, ultimately wants to be independent. Last month, the pro-business Democrats Party won a general elections, tripling their representation from 5 to 10. The party announced that it would form an alliance government with three other political parties. The coalition represents 23 out of 31 seats in the parliamentary chamber. The Naleraq Party, an independentist party with a strong pro-independence stance, which doubled its number of seats in the last election to eight, will not join the coalition. (Reporting and editing by Terje Solsvik, Nia Williams and Louise Breusch Rasmussen)
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Trump orders a fresh review of Nippon Steel’s bid to acquire US Steel
The President Donald Trump directed on Monday a powerful U.S. National Security Panel to take a new look at Nippon Steel’s bid for U.S. Steel in order to determine if “further actions” are appropriate. This has raised hopes that the deal will be approved. The memo states: "I direct the Committee on Foreign Investment in the United States...to review the acquisition of U.S. Steel (by Nippon Steel) in order to help me determine whether or not further action in the matter is appropriate." US Steel and Nippon Steel didn't immediately respond to comments. Investors interpreted the White House directive as a sign that the Trump administration is considering approving the merger, after Joe Biden had blocked it in January on the grounds of national security. After the block, two companies sued CFIUS (which examines foreign investments to determine if they pose a national security risk), alleging Biden had prejudiced the decision of the committee and violated their right to an impartial review. They claimed the then-President acted in this way to gain the favor of the United Steelworkers union (USW) in Pennsylvania, a swing state where U.S. Steel has its headquarters, and to increase his chances of being re-elected. Last month, the Trump Administration filed a motion To give the government time to complete merger negotiations with the companies, the U.S. Steel and Nippon Steel lawsuits against the U.S. National Security Panel were extended. Reporting by Alexandra Alper, Washington D.C. and Brendan O'Brien, Chicago; editing by Doina chiacu
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OPEC March crude oil production falls on Venezuela and Iran amid sanctions
A survey revealed that OPEC's oil production fell in March, ahead of a planned increase, as Nigeria cut deliveries to its domestic refineries, and Iranian and Venezuelan supplies dropped due to renewed U.S. efforts to reduce the flow. According to a survey released on Monday, the Organization of the Petroleum Exporting Countries (OPEC) pumped 26,63 million barrels of oil per day in February, a decrease of 110,000 bpd compared to the total for the month of February. The largest declines were recorded by Nigeria, Iran, and Venezuela. OPEC+, a grouping of OPEC, its allies, and Russia, has begun to unwind the most recent cuts in output. The extent of the increase will partly depend on how President Donald Trump's attempts to restrict supply from Iran and Venezuela affect the price. The survey revealed that in March, Nigeria, Iran, and Venezuela each saw their supply fall by 50,000 bpd. The survey concluded that Nigerian exports were higher than expected, but the supply decreased due to lower deliveries to the Dangote Refinery. According to the survey Nigeria is slightly pumping above its OPEC+ targets, with Gabon being the least compliant. Surveys show that the Iranian oil production fell in February from its previous high of September, which was also the highest level since 2018. The slight drop in output comes at a time when the U.S., under Trump, is redoubling its efforts to pressure Iran's oil imports. The survey also found that Venezuela, which was similarly affected by U.S. actions, saw a decline in exports in December, due to Washington's secondary tariffs, and the cancellation of energy licenses. The survey showed that output in Saudi Arabia and Iraq, two of OPEC's biggest producers, increased slightly. Both nations are pumping lower than their OPEC+ target. The output in the United Arab Emirates met its target. The OPEC secondary sources' survey and data from February show that the UAE and Iraq pump close to their quotas. However, other estimates such as the International Energy Agency suggest they pump significantly more. The survey revealed that there was no increase in production last month. The survey aims at tracking supply on the market. It is based upon data provided by LSEG (a financial group), information from companies that track flow, such as Kpler and information provided from sources within oil companies, OPEC, and consultants. (Additional reporting and editing by Emelia Sithole Matarise)
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Stocks drop; White House denies report of tariff pause
The major stock indexes fell on Monday, but they were still off their lows. This was after the White House denied that President Donald Trump had considered a 90-day suspension of tariffs for every country except China. The U.S. Dollar was higher. Wall Street indexes began the day sharply down but reversed their course after a report stating that White House economist Kevin Hassett stated in an interview, that Trump is considering a 90-day tariff suspension. The Dow Jones Industrial Average dropped 469.46, or 1.2%, to 37.845.40. The S&P 500 declined 28.89, or 0.5%, to 5,046.66. And the Nasdaq Composite was down 3.62, or 0.02, points to 15,584.16. The MSCI index of global stocks fell by 12.42 points or 1.63% to 751.87. The pan-European STOXX 600 fell by 2.58%. The S&P 500 was on track to confirm a decline earlier amid concerns that Trump would not back down from his tariff plans. The Federal Reserve could cut interest rates in May if the recession risk increases. The futures markets have priced in nearly five quarter-point reductions in U.S. interest rates this year. The dollar index (which measures the greenback versus a basket including the yen, the euro and other currencies) rose by 0.72%, to 103.34. However, the euro fell 0.36%, to $1.0919. The dollar gained 0.48% against the Japanese yen to reach 147.64.
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Sefcovic: EU will target imports worth less than EUR26 billion from the U.S.
After taking into account the remarks of member states, EU Trade Commissioner Maros SEFCIOVIC told reporters that the countermeasures taken by the European Union against a list U.S. steel and aluminum imports as a response to Trump's administration's tariffs on these products will amount to less than 28.46 billion euros ($28.46billion) after taking into consideration their remarks. We are talking 26 billion euro when it comes to steel and aluminum, as well as derivatives (...). The list will be finalized tonight (...), but I can assure you that the amount won't reach 26 billion euros because we have listened very carefully to all of our member states," said he to reporters. The EU 27 nations will be hit with 25% tariffs on imports of steel, aluminium, and cars as part of the U.S. Administration's tariff plan. Sefcovic said, "We wanted to ensure that the burden was evenly distributed among all members." Ursula von der Leyen, President of the European Commission, spoke earlier in the day Hold a call On Monday, he met with representatives of the metals industry and will speak to the automotive sector later about how to deal with U.S. Tariffs. ($1 = 0.9137 euro) (Reporting and writing by Philip Blenkinsop, GV De Clercq, Editing by Benoit van Overstraeten).
Financial Times - April 7
These are the most popular stories from the Financial Times. These stories have not been verified and we cannot vouch their accuracy.
Headlines
- UK auto industry gets tariff relief by lowering EV targets
- Britain will relax rules for hedge funds and smaller private equity firms
UK will scrap or merge even more quangos as part of anti-regulation drive
- US closes on crucial minerals deal with DR Congo
View the full article
After President Donald Trump's 25% tariff on global auto sector exports to the U.S., the British government has lowered its targets for electric cars, and lowered punitive penalties, to support the domestic automotive industry.
The British Government plans to introduce a lighter regulatory system for smaller groups in order to encourage more investment.
UK Cabinet Office Minister Pat McFadden wrote to Whitehall departments to demand they justify the existence and purpose of each quango that is currently being used to outsource decisions. The aim is to close unnecessary agencies and bring responsibility for making decisions back to Whitehall.
The United States is close to a deal that will see American companies gain more control over critical mineral assets, in exchange for greater support for the struggling Kinshasa Government. (Compiled Bengaluru Newsroom)
(source: Reuters)