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After a selloff, the price of base metals in China has stabilised.
The base metal price in China stabilized on Tuesday, after the previous day’s drop, as the market took a wait-and see stance, amid an escalating trade war that has fueled recession fears. As of 0120 GMT the most traded copper contract at the Shanghai Futures Exchange dropped 1.4%, to 73.270 yuan a metric ton, a drop of three months. The market had opened Asia Monday with a 7% drop. The benchmark copper price for three months on the London Metal Exchange was up 0.4% at $8,768 a metric ton. This is a rebound from its Monday low of $8,105, which marked the lowest since November 2023. China's Commerce Ministry stated on Tuesday that it would never accept "blackmail" from the United States, after President Trump threatened on Monday to impose a 50% additional tariff on China if Beijing did not remove its retaliatory duties. China, the world's largest consumer of metals, responded last Friday by imposing additional tariffs of 34% on all U.S. products from April 10 after U.S. President Donald Trump imposed 34% on most Chinese items as part his sweeping tariff program. Base metals traders said that prices have stabilized after yesterday's steep decline. People are waiting and watching as the retaliatory trade tariffs continue. SHFE aluminium rose 0.9% to 19.725 yuan per ton. Zinc gained 0.7% to 22530 yuan. Lead fell by 0.3% to 16.660 yuan. Nickel was up 0.1% at 119,400, and tin dropped 0.8% to 268630 yuan. Other metals include LME aluminium, which rose 0.6% to $2384 per ton. Lead was up 0.4% at $1877. Zinc was up 0.4% at $2624. Tin was down by 0.1%, at $33,900, and nickel was 1.2% higher at $14,540. (Reporting and editing by Janane Vekatraman; Mei Mei Chu and Violet Li contributed to this report.)
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Oil prices rise 1% following US tariff-driven selling
The oil prices increased by more than 1% Tuesday. This is a rebound after recent heavy losses, mainly due to fears that U.S. Tariffs could depress demand or lead to a recession. Brent crude futures increased 81 cents or 1.26% to $65.02 a barrel. U.S. West Texas intermediate crude futures increased 92 cents or 1.52% to $61.61 at 0051 GMT. Oil prices fell 2% on Monday, approaching a four-year record low. This was due to concerns that the latest tariffs imposed by U.S. president Donald Trump could push global economies into recession, and reduce energy demand. The markets, however, expect a possible limit to the downward trajectory for oil prices. Trump claims that tariffs of at least 10% on all U.S. imported goods, and targeted rates up to 50% would help revive the U.S. industry base. He says it has declined due to decades' worth of trade liberalisation. Many countries, such as China, the second largest economy in the world after the U.S. have announced plans to reciprocate tariffs. Trump has said that he will impose more tariffs against China if Beijing doesn't withdraw its countermeasures. Tony Sycamore of IG said that if China were to remain firm, its total tariff rate for imports into the U.S. could reach 104%. This would likely trigger a further deterioration of risk sentiment and steep falls in global stock markets, as well as accelerate the pace at which the global economy is heading towards recession. The market expects a weak demand for crude oil. A preliminary poll conducted on Monday showed that U.S. crude and distillate inventory levels were expected to rise by an average of 1.6 million barrels last week. Analysts estimate that the break-even cost for oil production in America, the world’s largest oil producer, is around $60 per barrel. This could set a ceiling on how low oil prices can go if some decide to reduce investment and drilling. If prices continue to be low, which is likely, this would lead to a slowdown in the growth of output and a fall in U.S. production from its current level at 13.4 million barrels / day. Eurasia Group stated in a report that the reduced activity is likely to support WTI prices in the $50s. (Reporting and editing by Muralikumar Aantharaman, Jacqueline Wong, and Katya Glubkova from Tokyo)
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China's state-owned firms pledge to increase share purchases in order to stabilize the market
On Tuesday, several Chinese state-owned companies pledged to increase their share investments as Beijing intensifies efforts to stabilize the stock market that has been soaring due to U.S. trade tariff woes. China Chengtong Holdings Group, and China Reform Holdings Corp made their announcements after Chinese state fund Central Huijin announced the day before that it would increase its shareholdings in order to promote stability on the markets. China's benchmark stock index fell 7% on Sunday amid investor concerns about the possibility of a trade war that could cause damage and a global economic recession. Washington imposed tariffs of 34% extra on China last week, and China responded with 34% additional levies against U.S. imports. Chengtong's investment units are increasing their holdings of stocks and exchange-traded funds (ETFs), to ensure market stability. The state investment firm stated in a press release that it was "firmly optimistic" about the growth prospects for China's capital market. It also pledged to support the high-quality growth among Chinese listed companies. China Reform Holdings Corp., or Guoxin as it is also known, announced in a separate press release that its investment unit would increase holdings of tech companies, ETFs and state-owned firms, utilizing a refinancing scheme to buy back shares. The initial investment will be 80 billion Yuan ($10.95billion). China Electronics Technology Group is another state-owned holding company that has announced it will increase share buybacks of listed units in order to boost investor confidence.
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US Health Department to issue new recommendations on fluoride
A spokesperson announced on Monday that the U.S. Department of Health and Human Services would reconvene an independent panel of experts in order to make a recommendation regarding fluoride being added to drinking water. Since decades, the use of this mineral in water, which strengthens tooth enamel and promotes dental health, is a controversial political issue. A spokesperson for HHS said that "HHS will reconvene the Community Preventive Services Task Force in order to study fluoride and make new recommendations on it." This statement was made in response to an Associated Press article quoting Robert F. Kennedy Jr., Secretary of Health and Human Services, saying that he would tell the Centers for Disease Control and Prevention not to recommend fluoride for drinking water at an event held in Salt Lake City. According to an EPA announcement, the U.S. Environmental Protection Agency, in coordination with HHS will also review the new scientific information regarding the potential health effects of fluoride, as an initial step towards deciding standards for its inclusion. Administrator Lee Zeldin stated this at the same event. Utah is the first U.S. State to have banned the use of fluoride as a water treatment agent after Governor Spencer Cox passed legislation in this regard last month. The American Dental Association has opposed the Utah law, and continues to support community water fluoridation as a way to prevent tooth decay. The U.S. Public Health Service suggests that fluoride levels in drinking water should not exceed 0.7 milligrams per liter. It is known that levels above 1.5mg/l, or twice the recommended limit of that level, increase health risks, such as thyroid disease, bone fractures and nervous system damage. The EPA has set a limit of 4.0 mg/L as the enforceable limit. A federal judge in California issued an order to the EPA on September 20, 2024 to tighten its regulations. The judge said that the compound poses a risk to children, even at the levels currently common across the country. Kennedy, who opposes adding fluoride in public water systems has claimed that, despite the lack of conclusive proof, water fluoridation is linked to numerous health problems including cancer. According to CDC data, as of 2022, fluoride is present in the water of 63% of Americans. Ahmed Aboulenein, Washington; Jasper Ward, Additional Reporting Editing by Caitlin and Matthew Lewis
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Maple Leafs extend division lead with Panthers' loss
Toronto Maple Leafs are aiming for a win against the Florida Panthers in Sunrise, Fla. on Tuesday night. This would help them tighten their grip on first place in the Atlantic Division. The Maple Leafs (46-25-7, 98) were four points in front of the Tampa Bay Lightning (94 points), and six points ahead of Carolina (44-29-4). Toronto will face Tampa Bay on Tuesday. Last Wednesday, the Maple Leafs won their first game against Florida in three years by beating the Panthers with a short-handed team 3-2 at Toronto. The Panthers lost 2-1 to the Detroit Red Wings in Detroit on Sunday. It was their fifth consecutive loss as they played with a reduced roster. Aleksander Barkov, Matthew Tkachuk, Nico Sturm, Sam Reinhart, Sam Bennett, and Gustav Forsling were all missing. This trio rested on Sunday. Panthers coach Paul Maurice stated, "You want to get every advantage, home ice, and all of that, but you have to heal these guys." We have to give ourselves the chance to play in the playoffs physically and our schedule will not allow that at this time. Rasmus Asplund Jesse Puljujarvi, and Matt Kiersted have been recalled by Charlotte's AHL affiliate and thrust into the fire on Sunday. Kiersted's first NHL appearance was since December 23, 2022. "We had some guys come in, and they did a great job," said Panthers' forward Mackie Samoskevich who was credited with an assist. It was almost seamless. "They played well and fitted into the game immediately." Anton Lundell's goal at 19:20 in the third period saved the Panthers from being shutout for two consecutive games. The Panthers had been defeated 3-0 by the Ottawa Senators in their previous game. Maurice commented, "It's good to think about how we measure ourselves by what we give up regardless of who is in the lineup." Samoskevich stated, "I would not say that it matters where we finish." You have to beat everyone if you want to win the championship. It's not about opening our game. I think we need to stay tight and work on our forecheck. This is what works during the playoffs. "I think we're already doing it." The Maple Leafs won 5-0 at home against the Columbus Blue Jackets on Saturday, following their victory over the Panthers. William Nylander scored twice, as did Nicholas Robertson. Mitchell Marner's 70th career-best assist extended his point streak to seven (three goals and eight assists). Toronto goaltender Anthony Stolarz said, "I thought we were very disciplined in our third period. We didn't just sit back." Stolarz made 27 saves and earned his second shutout this season, as well as his 10th career. We continued to forecheck, press their defence and force them turn pucks over, and that allowed us open ice to score some goals. Defensively, I think we were fantastic. We didn't give up any opportunities." Toronto had lost both previous meetings with Columbus. Toronto's playoff performance was disciplined. Craig Berube, the coach of Toronto, said that "staying in tight games is important. It's checking tight." "Not forcing it, not opening it up and then getting frustrated. Then taking over in the third." "That's what I love most about my life right now." Toronto's Jake McCabe, and David Kampf took part in the optional practice at the rink on Monday. However, they will not be traveling to Florida. Field Level Media
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Brent futures and options volume surpasses pandemic record, as oil market reels
Brent crude futures contracts and options traded on the Intercontinental Exchange, or ICE, reached record volumes on Friday. This was higher than the COVID-19 pandemic levels as investors prepared for a trade war around the world and OPEC+'s oil production increases. The end of the last week saw oil prices plummet to their lowest level in four years, the biggest weekly drop since a year-and-a-half. According to ICE, market participants traded 4.067 millions ICE Brent futures contracts and options, breaking the previous record of 4.063 million set in 2020 when the global pandemic shook energy markets and sent traders scrambling, as oil demand shrank. The U.S. president Donald Trump shocked the financial markets by imposing a new tax on Wednesday. Tariffs on sweeping goods Some countries, such as China, face significantly higher duties on imports. Oil prices fell further after the Organization of the Petroleum Exporting Countries (OPEC+), which is a group of oil-exporting countries and their allies, decided to move forward with plans for increased production. The group now plans to return to the market 411,000 barrels of oil per day in May. This is up from the 135,000 barrels per days that were originally planned. Brent traded as low as $62.52 per barrel on Monday as Trump vowed to impose even higher tariffs against China, and major banks increased their recession risk estimates. Benchmark Brent, as defined by the ICE is a barometer of three-quarters of all crude oil traded internationally, and therefore a good indicator of the health of oil markets. "People were waiting to enter the market, but once they saw some of the tariffs and OPEC's news unfolding, they began to take a negative position," said Alex Hodes. He is the director of marketing strategy at StoneX, a financial services firm. OIL INVESTOR WHIPLASH Analyst Giovanni Staunovo of UBS said that in the days leading up to Trump's announcement, the oil market was focused on the growth of demand, low oil stocks, and the threat that sanctions against Russia, Iran, and Venezuela could disrupt supply. Trump warned on March 30, that he would impose secondary tariffs ranging from 25% to 50% for buyers of Russian crude oil if he believed Moscow was blocking him in his attempts to end the conflict in Ukraine. According to LSEG, in the week leading up to April 1, money manager positions on ICE for Brent crude futures or options were at their highest level since April 30, 2024. Brent futures closed at an all-time high of $74.74 per barrel on March 31. This helped to boost bullish sentiment. Staunovo stated that "now the focus is on how much the global economy will weaken as a result the trade war, and how much the oil demand growth will slow over the next few months." Hodes, of StoneX, said that he expects this week's traders' data to be more bearish. (Reporting and editing by Nia William in Houston, Georgina McCartney from Houston)
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Brazil's Energy Minister asks Petrobras CEO about diesel price reduction
Sources with knowledge of this matter said that Brazil's Mines and Energy Minister has asked Petrobras to consider a new reduction in the average price for diesel sold to Brazilian distributors. Sources said that Minister Alexandre Silveira had cited recent drops in oil prices as well as the stability of the US dollar to justify a price reduction for Petrobras Chief Executive Magda Chabriard. The talks took place last week, they added. CNN Brasil had previously reported Silveira's demand. The request is made as oil prices are falling due to President Donald Trump's tariffs, which could cause economies all over the world to go into recession and reduce the demand for energy. Petrobras announced its global tariffs on April 2, just one day before Trump. Diesel prices are being cut The first time since 2023 that fossil fuels have been reduced by 4,6%, or R$0.17 a liter. The Brazilian government is constantly pressuring Petrobras to lower fuel prices for distributors in an effort to lower the cost of living for Brazilians as well as boost Lula's popularity. Petrobras has recently increased its diesel prices above the import parity, and they were 5% higher on Friday according to Abicom.
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US talks to Pakistan about tariffs, minerals and immigration
The State Department and Pakistani foreign ministry released separate statements confirming that U.S. secretary of state Marco Rubio had spoken to Pakistani Foreign minister Ishaq dar on Monday. They discussed tariffs, trade relationships, immigration, and the prospects for engagement in relation to critical minerals. Last week, President Donald Trump announced that he will impose a baseline 10% tariff on all imports into the U.S., and even higher duties on other countries. This includes some of Washington's largest trading partners. The announcement rattled global markets, and confused U.S. ally. The Trump administration imposed 29% on Pakistan. The State Department reported that "they (Rubio, and Dar) discussed U.S. bilateral tariffs against Pakistan and how to progress towards a fair and equal trade relationship." The Secretary expressed his interest in increasing commercial opportunities for U.S. companies." The Pakistani Foreign Ministry said that Rubio "recognised the desire to collaborate in trade and investments with Pakistan, particularly critical minerals". The Trump administration also uses the prospect of engagement with other countries over critical minerals. As an example, the US is trying to reach a deal with Ukraine over vital minerals as part of discussions related to Russia-Ukraine War. Washington said that it was open to exploring partnerships for critical minerals with Congo, and helping end the conflict in the east of this African country. The State Department reported that Rubio stressed the importance of Pakistani cooperation with the U.S. in law enforcement, and the fight against illegal immigration. Last month, Pakistan highlighted their cooperation with Washington in countering extremism following the arrest of Mohammad Sharifullah. The U.S. has blamed him for an attack 2021 on its troops at Kabul Airport, during a military operation on the border with Afghanistan. The Pakistani foreign ministry confirmed that Rubio and Dar had discussed the Afghan situation. Reporting by Kanishka Sing in Washington, edited by Alistair Bell
Trump's trade tariffs and threats
The global trade war, started by U.S. president Donald Trump, has intensified this month, after he announced tariffs on the majority of U.S. imported goods. This sparked fears of a global recession, sent jitters through global financial markets, and drew condemnation from world leaders.
Trump announced his plans to increase "reciprocal duties" on several of the United States' largest trading partners on April 2, which he called "Liberation Day."
Tariffs of 10% were in effect from April 5 to 9, while higher reciprocal rates would be implemented on April 9.
The new U.S. trade barriers are the highest in over a century.
Trump's tariff threat has changed over the years, and other nations and businesses are unsure of what will happen next. This has roiled consumer and business confidence.
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.
Trump's economic team was tasked with developing plans to impose reciprocal tariffs against every country that taxes U.S. Imports. They were also tasked with removing non-tariff barriers, such as vehicle safety regulations that exclude U.S. automobiles and value added taxes that raise their price.
Trump said that the reciprocal tariffs were a response to the barriers placed on U.S. products. Administration officials, however, stated that the tariffs will create manufacturing jobs in the United States and open export markets abroad.
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 additional costs to consumers.
Specific COUNTRIES
Trump's tariff proposal targets several key trading partners.
MEXICO AND CANADA : Mexico and Canada were the two largest trading partners of the U.S. from 2024 to November. Trump's new tariffs of 25% on imports from Mexico, Canada and the European Union took effect on 4 March as a response to migration and fentanyl.
Tariffs were imposed on energy imports from Canada and Mexico, as well as on the majority of goods imported. Canada exports mainly crude oil, other energy products and cars and auto components within the North American automotive manufacturing chain. Mexico exports a variety of goods to the U.S., including industrial and automotive products.
Canada retaliated with a 25% tariff on C$30 billion (21,13 billion dollars) of U.S. imported goods, including oranges juice, peanuts butter, beer and coffee, as well as appliances, motorcycles, and appliances.
The Canadian government said that it will impose additional duties on C$125billion of U.S. products if Trump's Tariffs are still in effect in 21 days. This could include vehicles, aircraft, steel, beef, and pork.
U.S. commerce secretary Howard Lutnick stated that U.S. officials could still work out a partial solution with the two neighboring countries, and added that they need to do more in the fentanyl arena.
Canada, which is the largest foreign supplier of aluminum and steel to the United States (C$29.8billion), announced on March 12 that it would impose retaliatory duties on U.S. imports worth C$29.8billion ($20billion) as a response to Trump’s steel and aluminium tariffs.
The two countries are exempted from the "Liberation Day", announced on April 2 tariffs, but they face a separate 25% tariff on auto imports.
Canada has asked the WTO to consult with the U.S. about its import duties on steel and aluminum products as well as levies placed on Canadian cars and parts.
CHINA: Trump imposed 10% tariffs on all Chinese imports to the U.S. effective February 4, after repeatedly warning Beijing that it was not doing enough to stop the flow of illegal drugs into the U.S.
On March 4, he imposed another 10% tariff on Chinese products.
China announced additional tariffs between 10% and 15% on some U.S. exports starting March 10, as well as a number of new restrictions for certain U.S. entities. It then complained to the WTO about the U.S. Tariffs.
Trump increased the tariffs on China by 34% in April, making the total to 54%. China responded with a 34% duty on all U.S. products.
Trump replied that if Beijing did not remove its retaliatory duties on the U.S. he would impose a 50% additional tariff. He also said, "all discussions with China regarding their requested meetings will be terminated."
Trump has said that the EU, and other countries, have alarming trade surpluses against the U.S. 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.
Steel, aluminum and cars will be subject to import tariffs of 25%, while other goods will face tariffs of up to 20%, starting April 9. Pharmaceuticals are among the most vulnerable industries, since U.S. companies such as Johnson & Johnson, Pfizer, and others have large facilities in Ireland. Ireland is a major exporter for medical devices.
The European Union announced on April 7 that it had offered to offer a "zero for zero" tariff deal in order to avoid a trade conflict. EU ministers agreed to give priority to negotiations, while retaliating with targeted countermeasures the following week.
In response to Trump's metals duties, the EU announced on March 12 that it would begin imposing counter-tariffs next month on goods worth 26 billion euros (28 billion dollars) from the United States. As a result of the U.S. auto and wider tariffs, the EU is expected to release a more comprehensive package of countermeasures at the end of April.
Trump announced on March 13 that he would impose a tariff of 200% on European wines and spirits as a response to EU plans to levy tariffs on American whisky and other products in the next month.
PRODUCTS
AUTOS: Trump announced a 25% tariff for imported cars and light truck on March 26. The 25% tax would be added to previous duties on imported finished vehicles beginning on April 3.
Trump's directive includes temporary exemptions for auto components that comply with the U.S. Mexico Canada Agreement (USMCA), a trade agreement that Trump negotiated in his first term.
The tariffs will apply to other major imports of automotive parts. These are identified by Trump as "engines, engine parts, transmissions, powertrain components, and electrical component" and they will be imposed on a specific date, which is to be announced in the Federal Register, but no later than "May 3, 2025".
Metals: On March 12th, Trump raised tariffs for all imports of steel and aluminum to 25% and extended duties to hundreds downstream products. These include everything from nuts and bolts, to bulldozers blades, to soda cans.
More than half of the U.S.'s aluminum and steel imports come from Canada, Mexico, and Brazil.
Trump ordered on February 25, a new investigation into the possibility of new tariffs on imports of copper to rebuild U.S. manufacturing of this metal, which is critical for electric vehicles, military equipment, semiconductors, and a variety of consumer goods.
Just over half of the refined copper that America consumes every year is produced domestically.
SEMICONDUCTORS : Trump stated that tariffs would start at "25% or higher" and increase substantially over the course a year. He did not specify when they will be implemented.
Taiwan Semiconductor Manufacturing Co., the largest contract chipmaker in the world, produces semiconductors for Nvidia and Apple, among other U.S. customers. In 2024, it will generate 70% of its revenues from North American clients.
LUMBER: On March 1, Trump ordered a new investigation into trade that could add more tariffs to imported lumber. This would be in addition to the existing duties on Canadian Softwood Lumber and 25% tariffs for all Canadian and Mexican products.
ALCOHOL: Trump threatened on March 13 to slap 200% tariffs on wine, cognac, and other alcohol imported from Europe in response to an EU plan to impose tariffs next month on American whiskey, and other products -- which is itself a retaliation for Trump's 25% tariffs imposed on steel and aluminium imports the day before.
PHARMACEUTICALS - While Trump's "Liberation Day' announcement spared the pharmaceutical sector from reciprocal duties, he later stated that the tariffs were "under review." He warned that the level of the tariffs could be "at a new high that you've never seen before." ($1 = 1.4197 Canadian dollars)
(source: Reuters)