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CORRECTED - Russia prepares to seize strategic Ukrainian city Pokrovsk
According to Russian military blogs, Russian forces are on the verge of taking Pokrovsk in eastern Ukraine after a pincer-like movement encircled the city while small groups highly mobile Russian units entered the city. What is POKROVSK? Pokrovsk, a hub for road and rail in Ukraine's eastern Donetsk Region, had a population of around 60,000 before the war. The majority of people have fled. All children have been evacuated, and there are few civilians left. The road is a major one used by the Ukrainian army. The only coking coal mine in Ukraine, which was used to make steel, is located about six miles (10 kilometers) west of Pokrovsk. Metinvest, a Ukrainian steelmaker, announced in January that it had suspended mining activities there. The largest and oldest technical university of the region, Pokrovsk's, has been damaged by shelling. It now stands abandoned. Why does Russia want Pokrovsk? Russia wants the entire Donbas region which includes Luhansk & Donetsk Provinces. Ukraine still controls 10% of Donbas, which is an area of approximately 5,000 square kilometers (1,930 sq mi) in western Donetsk. The Russian president Vladimir Putin claims that Donbas now belongs to Russia, but Kyiv as well as the West reject Moscow’s seizure of territory. Capturing Pokrovsk (dubbed by Russian media "the gateway to Donetsk") and Kostiantynivka, to its northeast, which Russian forces are trying to envelop would give Moscow a base to drive north to the two largest remaining Ukrainian-controlled Donetsk cities - Kramatorsk & Sloviansk. Why has it taken so long? Russia has been threatening Pokrovsk since more than a decade, but its military has used a different strategy. Instead of the frontal attacks that were so famously employed in Bakhmut by Russia's military, they have adopted a new tactic. Russian forces used pincer movements to nearly completely encircle Pokrovsk, and then harassed Ukrainian forces with small units and drones in order to disrupt logistics and create chaos at their rear. In essence, Russia's tactic carved out what Russian military blogs called a gray zone of ambiguity from the city. This was a place where neither side could control it but that was very difficult to defend. It may take time to clear Pokrovsk as well as the nearby Myrnohrad, which will delay Russia's official announcement. The Russian offensive on Pokrovsk was also delayed by the Ukraine's incursion in the Kursk region last year. What is happening now? Ukraine has been rushing to reinforce positions in the city. "There are fierce battles in the city, and at the entrances to the city..." Logistics is difficult. "We must continue to destroy occupiers," said President Volodymyr Zelenskiy on Sunday. Valery Gerasimov (Chief of the General Staff) told Putin that Russia had stopped a large number Ukrainian soldiers from entering the area. Russian bloggers claimed that Ukraine's top units had left the area. The pro-Ukrainian war blogger DeepState said that Russian forces continued to infiltrate into the city. DeepState stated that "the situation in Pokrovsk has reached a critical point and is continuing to deteriorate at a rate where it could be too late for redress." Due to restrictions on reporting in the war zone, it was impossible to verify any battlefield reports. What is Russia doing along the rest of the front? The Russian military claims to have control over more than 19% (116,000 square kilometers) of Ukraine. Gerasimov said to Putin that Russian forces are also advancing into the Dnipropetrovsk region of Ukraine and Zaporizhzhia and they threaten Kupiansk, which is located in Kharkiv's region. The Russian advance towards Zaporizhzhia indicates that Moscow's current plan includes taking over the entire region. Moscow considers Crimea, Luhansk Donetsk Zaporizhzhia Kherson and Zaporizhzhia to be subjects of the Russian Federation. Kyiv claims they are all part Ukraine. The majority of countries do not recognize the area as being part of Russia, but Syria and Nicaragua have recognized Moscow's annexation. In 2014, the United Nations General Assembly declared that the annexation was illegal and recognized Crimea as part Ukraine. Putin accused the West for having double standards, accusing them of recognising Kosovo in 2008 as an independent state against Serbia's will but refusing to recognize Crimea. Russia opposes the independence of Kosovo. (Reporting and editing by Gareth Jones, Guy Faulconbridge)
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Trump says the issue is'settled,' after China agreed to a one-year deal on rare earths exports.
China has agreed to continue exporting rare earths to the rest of the world for a year as part of an agreement signed by President Donald Trump on Thursday, shortly after his meeting with his counterpart Xi Jinping. Trump said that the agreement would "settlement" the matter. He did not provide many details, except to say it was likely to be extended. China has not yet commented on the agreement reached by both leaders during their nearly two-hour long talks. Trump told reporters aboard Air Force One that "all of the rare-earth issue has been resolved." "And this is for the entire world, globally, you could say that this was not only a U.S. situation. situation." There is no roadblock on rare earth. This will hopefully be a thing of the past for a while." Rare earths are 17 tiny elements that play vital roles in planes, cars and weapons. They have emerged out of obscurity as China's greatest source of leverage during its trade war against the United States. Export controls implemented in April led to widespread shortages abroad, particularly for magnets. Some automakers were forced to halt production until exports recovered following agreements between Beijing, Washington, and the European Union. China increased these controls again in October. The total number of restricted elements was reduced to 12, and the processing equipment added. It is not clear whether the agreement that Trump discussed covers all of China's controls on rare earth exports or only the October extension. Jamieson Greer of the U.S. trade representative, who was also on board the plane, stated that China will not impose its proposed controls on rare earths after an agreement between the two presidents. He didn't comment on the controls already in place. Reporting by Lewis Jackson, Beijing; editing by Lincoln Feast
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The 'amazing' Trump Xi meeting calms tensions
Ankur Banerjee gives us a look at what the future holds for European and global markets Investors can only think of a handshake between Donald Trump, Xi Jinping and the Bank of Japan. They also have to consider Jerome Powell of the Federal Reserve's cautious tone. The markets will welcome the optimism expressed by the U.S. President and his counterpart in China. Trump claimed to have struck a deal with China that would reduce tariffs in exchange for Beijing continuing U.S. purchases of soybeans, maintaining rare earth exports and crackingdown on illicit fentanyl trade. China has not yet responded. Trump called his meeting with Xi "amazing", stating that "on a 1-10 scale, the meeting with Xi is 12." The markets didn't really know what to think, and stocks have been choppy. Markets are waiting for more details on the agreement between two of the world's largest economies. Stocks around the world reached record highs as signs of trade tensions eased. Chinese stocks also held close to a decade-high. This sets up a busy European schedule, with earnings due from Volkswagen, Puma, and many French banks, as well as inflation and economic data for the region. The Bank of Japan kept rates unchanged but reiterated its commitment to increase borrowing costs if economic growth is in line with their projections. This has shifted investor attention to the possibility of a rise as early as December. Powell was the star of the show on Wednesday, when the Fed cut rates in line with expectations. Powell said that a policy split within the U.S. Central Bank and the lack of data from the federal government may prevent another rate cut this year. The following are key developments that may influence the markets on Thursday. Economic events: Germany October inflation data; GDP data for the eurozone, Germany and France
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Russell: Imports of thermal coal from Asia are easing as prices increase after a 4-year low.
Open Interest (ROI), your indispensable source of global financial commentary, is Open Interest. The prices of seaborne thermal coal have been recovering modestly from their four-year lows in Asia, but this is at the cost of volume as major importers reduce demand. According to analysts DBX Commodities, China, India and South Korea are on course for lower coal arrivals in September than October. The prices of the main Australian and Indonesian grades have been rising since early June after a downward trend that began in October 2023. The lower prices in July and August did increase import demand, but the higher prices are now causing buyers to pull back. DBX estimates that China imported 28.17 millions metric tons of seaborne thermal coke in October. This is down from 28.43 in September, and below the 33.53 in October last year. India, the second largest coal importer in the world, is expected to import 13,35 million tons in October. This is down from the 13.76 million tons imported in September, and also below the 13.82 millions from last October. DBX predicts that Japan, ranked third in the world, will import 9.52 millions tons in October. This is down from 10.44 in September and 9.94 in 2024. South Korea is the fourth largest coal importer in the world. It expects to receive 6.45 million tonnes of coal in October. This is down from the 8.19 million tons that arrived in September but an increase from the 5.92 millions in October last year. It is not surprising that October's lower imports reflect the increased prices from July. PRICE RECOVERY The Australian coal price with a 5,500 kilocalories-per-kilogram (kcal/kg) energy content, a grade that is popular in China and India was $76.34 per ton by the commodity price reporting agency Argus in the week ending October 20. The price has increased by 16% from the low of $65.72 set in early June, and now stands at its highest level since the week ending March 3. Argus assessed Indonesian coal, with an energy content 4,200 kcal/kg at $45.26 a tonne in the seven-day period ending October 20. This is 12% higher than its low point of $40.45 for the week of July 4. GlobalCOAL assessed the price for 6,000 kcal/kg of fuel at Newcastle Port at $105.34 per ton on Tuesday, an increase from $103.74 last week. Newcastle's price, however, has remained largely unchanged in recent weeks in a small range of around $104 per ton. The lower imports to Japan and South Korea is more likely due to a weaker demand during the shoulder season, between the peak of northern summer and winter. Recent trends in the import and price of Asian seaborne thermal coke show that the market is divided between buyers who are more sensitive to prices, such as China and India and those who are more seasonal-driven, such as Japan or South Korea. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of a columnist who writes for.
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All eyes are on the outcome of US-China trade talks to determine how oil prices will perform.
In Asian trading, oil prices maintained their gains from Thursday's previous session as investors awaited for the results of the U.S. China trade talks. They were hoping to see signs that the tensions threatening the global economic outlook would ease. Brent crude futures fell by 4 cents (0.06%) to $64.88 per barrel at 0402 GMT, after rising 52 cents the previous day. U.S. West Texas Intermediate Crude Futures fell by 9 cents, or 0.15%, to $60.39. They had risen 33 cents the day before. The U.S. president Donald Trump and China’s leader Xi Jinping held a nearly two-hour meeting at a South Korean base in Busan. It was not immediately known what the outcome of these discussions would be. Sugandha Sagandha, the founder of SS WealthStreet in New Delhi, said that any progress toward a trade deal could boost market confidence and increase global energy demand. This would provide some upside for oil. Trump said that he expected to reduce U.S. Tariffs on Chinese Goods in exchange for Beijing’s commitment to curtail the flow of precursor chemical to make the drug Fentanyl. In line with expectations, the U.S. Federal Reserve also lowered interest rates Wednesday to help boost the economy. The Fed did, however, indicate that this might be the final cut for the year due to the government shutdown. Claudio Galimberti, Rystad's chief economist, said that the Fed's move reflects a wider shift in its policy cycle. It favours reflation over restraint and supports commodities sensitive to economic activity. Brent and WTI's gains in the previous session reflected an even greater drawdown than expected in U.S. crude oil and fuel inventories. The benchmarks, however, are on course to decline by about 3% this October, marking their third consecutive month with losses. The EIA reported that crude inventories fell by 6.86m barrels, to 416m barrels for the week ending October 24. This was a far cry from the 211,000 barrels analysts had predicted in a recent poll. Investors will also be interested in the OPEC+ Meeting scheduled for November 2 where the alliance is expected to announce a further 137,000 barrels of oil per day increase for December. In a series monthly increases, the group has increased its output by over 2.7m barrels per day. This is about 2.5% global supply. This is less than half of the cumulative supply cuts the group agreed to over the years.
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South Korea releases details about the trade agreement with the US
Here are some details from the U.S. White House Factsheet and South Korea's Chief Policy Advisor Kim Yong Beom on the recent trade agreement between the two nations. Washington and Seoul agreed that tariffs on U.S. auto imports from Korea and auto parts will be reduced to 15% from 25%. This is to bring them in line with their Japanese counterparts who pay the same 15% tariffs after Tokyo made a deal with Washington. South Korean wood product and pharmaceutical manufacturers will have the lowest tariffs of all countries. Generic drugs and aircraft parts will be exempt from tariffs. Kim said that South Korean chipmakers would "not be at a disadvantage in comparison to their Taiwanese counterparts". Seoul also managed to defend the opening of additional markets for agricultural products such as rice and beef. Government-controlled Korea Gas Corporation also signed an agreement to purchase about 3.3 million metric tons of U.S. liquefied natural gas per year in long-term agreements with sellers, the White House said in a statement. INVESTMENT The two countries agreed that a $350 billion promised investment fund would be split into $200 billion of cash, to be paid out in installments. They also agreed to cap the payments at $20 billion a year. The Bank of Korea said recently that Seoul could only afford to give $20 billion per year without impacting the forex market. The remaining 150 billion dollars would be used for shipbuilding, including guarantees, investments by South Korean firms, and ship financing. Seoul stated that this would help to reduce the burden on the South Korean currency market and increase chances for South Korean companies to win orders. Kim stated that the deal is structured similarly to the agreement between Japan and the U.S. in September. However, South Korea was able to secure additional safeguards, such as the annual limit of $20 billion, to protect the local foreign currency market from any shocks. The White House announced that South Korea's cable maker LS Group has pledged to invest 3 billion dollars by 2030 in building power-grid infrastructure for the U.S. including undersea cables. HD Hyundai, a Korean shipbuilder, will work with U.S. investment company Cerberus Capital Management to invest $5 billion in a project that will improve American shipyards. White House: The two countries have also signed a Memorandum of Understanding to enhance collaboration in strategic science, technology, and research, including artificial intelligence and space exploration. RAISING FUNDS Kim, the South Korean official, said that the two parties agreed to split the profits 50/50 after the initial investment is recovered and to pursue only commercially viable projects. Kim stated that South Korea would use the operating income of its foreign assets, including interest accrued and dividends. South Korea does not need to issue government-backed bonds on the local market, but will likely raise funds through offshore markets. This is what policy banks like The Export and Import Bank of Korea do. Howard Lutnick, U.S. Secretary of Commerce, would lead a committee that would assess investment projects. Reporting by Cynthia Kim, Joyce Lee and Jack Kim in Seoul; Jihoon Lee, Ju-min Park and Juhoon Park in Gyeongju. Editing by Frances Kerry, Christian Schmollinger and Christian Schmollinger.
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Asia stocks rise as Fed cuts and Trump-Xi Meeting in focus
Asian stocks rose on Thursday, after the Federal Reserve lowered interest rates. U.S. leaders and Chinese officials met to negotiate a trade agreement. The yen fell after the Bank of Japan held rates as expected. MSCI's broadest Asia-Pacific index outside Japan rose 0.4% last, while U.S. S&P500 e-minis futures advanced 0.4% after Wall Street stocks posted a small loss to end a four-day streak of gains. As the Trump Administration imposes tariffs on imports from abroad, global markets are undergoing a series of central bank decisions. These will provide clues as to the future path of interest rates. Fred Neumann is the chief Asia economist for HSBC Hong Kong. He said that "the BOJ is tiptoeing toward a hike." All eyes are on December now, as a rate increase appears to be likely. After the Bank of Japan decision, Nikkei fluctuated between gains or losses. It was 0.2% higher at its last close. Although it did not change rates, the Bank of Japan reiterated its promise to increase borrowing costs in case the economy continues to move according its projections. The yen has reversed earlier gains against US dollar, and last was 0.2% weaker. Later today, BOJ Governor Kazuo Ueda is scheduled to hold a media conference. Donald Trump, the president of the United States, is meeting with Chinese leader Xi Jinping at this time in South Korea. U.S. negotiators are signaling that they want to return to the fragile truce in the trade war, but tensions between geopolitical opponents remain high. Fed Chair Jerome Powell said that policymakers will likely become more cautious in the absence of additional job and inflation data. The traders have reduced their expectations of a rate cut by the U.S. Central Bank in December. This was viewed earlier as near certainty. Fed funds futures indicate a 67.8% chance that the Fed will maintain rates at its December 10 meeting, compared to a 9.1% possibility on Wednesday. The yield of the 10-year Treasury Bond in the United States was at its highest point of 4,068% last week, an increase of 1 basis point from a previous closing of 4,058%. The dollar index (which measures the strength of the greenback against a basket six currencies) has slipped from its two-week high and is now down by 0.1% to 99.09. The last increase in gold was 0.1% to $3,932.08 an ounce. The euro last firmed up 0.1% at $1.1613, ahead of the policy decision made by the European Central Bank in the afternoon. It is expected that the bank will leave interest rates unchanged for the third time in a line. The KOSPI index also jumped by 0.8%, after Trump and South Korean president Lee Jae Myung finalised the details of a deal. Samsung Electronics shares soared by 3.9% on Friday after the company reported a 32% increase in its third-quarter operating profits. Investors are becoming more anxious about the AI buildout as corporate earnings season approaches. This is despite the fact that the U.S. economic outlook appears to be in good health. The pressure is being put on the tech megacap stocks, which account for the largest weighting of the S&P 500 Index. Meta forecast on Wednesday "significantly larger" capital expenditures next year, as its revenues exceeded market expectations. Microsoft's spending for artificial intelligence infrastructure reached a record high of almost $35 billion during the third quarter. Both companies' shares fell. Alphabet, the parent company of Google, a rival tech giant, bucked this trend. Its shares rose in after-hours trade after exceeding revenue expectations. Brent crude oil was down 0.4% last week, at $64.64 a barrel.
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Equinor Profit Falls, Impairments Mount as Oil Price Forecasts Trimmed
Equinor posted a bigger than expected drop in third-quarter profit on Wednesday as oil and gas prices fell, and booked asset impairments on a weaker long-term outlook for crude prices.The Norwegian energy group's adjusted earnings before tax for July-September fell 9.9% to $6.21 billion from $6.89 billion a year earlier, slightly lagging the $6.31 billion predicted in a poll of 21 analysts compiled by Equinor.Equinor maintained a projection that its oil and gas output will grow by 4% this year compared to 2024 and kept its forecast for capital expenditure in 2025 of $13 billion.Lower Price Outlook, Weaker TradingBut the group booked net asset impairments for the quarter, including some reversals of previous writedowns, of $754 million, "primarily driven by lower price outlook".Equinor now expects the benchmark Brent Blend oil price to be $75 per barrel between 2030 and 2040, while it had previously predicted a price of $80 at the start of that decade, declining to $75 by the end.The biggest impairment was a revaluation of British assets, including the North Sea Rosebank oilfield development, that Equinor is merging with Shell SHEL.L in a deal expected to complete by the end of this year, taking a $650 million hit.In the United States, Equinor booked an impairment of $385 million on offshore oil fields due to reduced production estimates, increased cost estimates, and the lower oil price assumption for the decade from 2030-2040, it said.Equinor lowered its quarterly guidance for its Midstream, Marketing and Processing segment, home to its energy trading activities, to an average adjusted operating income of around $400 million, from a previous $400 million to $800 million range."This is due to changing market conditions and earlier divestment of certain assets," it said.(Reuters - Reporting by Nerijus Adomaitis and Nora Buli, editing by Terje Solsvik and Alexander Smith)
QUOTES - Trade and labor associations, analyst 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.
SCOTT WHITAKER, CEO, ADVAMED
"This type of tariff 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."
RYAN ORABONE MANAGING CONSULTANT BEARINGPOINT
"Diversification (of the supply chain of an apparel retailer) and manufacturing is a moot issue because tariffs impact every major geographic facility where we produce clothing."
Brands need to be more strategic than ever before and plan everything with precision. "There is no room for errors anymore, including assortment, allocation and pricing."
DAVID SWARTZ ANALYST MORNINGSTAR FOLLOWING FITNESS
The huge tariffs on imports from Vietnam are clearly a negative for Nike Adidas and other sportswear companies. Due to the difficulty of manufacturing, athletic footwear can't be easily produced in other countries. Tariffs are also being levied on other Asian nations.
The industry will not react in a panic. If the tariffs remain in place, sportswear prices will rise and margins could be affected.
The chances of significant footwear and apparel manufacturing in the US being a result of any of these initiatives are virtually zero.
MARI SHOR SR., EQUITIES ANALYST AT COLUMBIA TREADNEEDLE INVESTIMENTS, WHICH HOARDS NIKE STOCKS
"The announcement of the tariffs is much worse than expected." Nike and other footwear companies will find it difficult to avoid a 46% tariff against Vietnam. The companies will try to fight back against vendors but tariffs are likely to drive up inflation in many categories and pressure consumer discretionary spending."
CHRIS VITALE, UAW VETERAN WHO RETIRED FROM STELLANTIS, ATTENDED TRUMP'S TARIFF ANNOUNCEMENT IN PERSON
"You know what's amazing is that an announcement about trade policy could become emotional."
"These are the things we've been preaching about for years. We've watched our factories and our capabilities being hollowed-out. To see a President address this and use some words and thoughts I've used, was incredible."
LIZ SHULER PRESIDENT AMERICAN FEDERATION of LABOR and CONGRESS INDUSTRIAL ORGANIZATIONS
The Trump administration's attacks against the rights of union workers at home, the gutting of government agencies that work to discourage outsourcing of American jobs, and efforts to erode crucial investments in U.S. Manufacturing take us backward.
RICHARD CAPETTO, SENIOR DIRECTOR, NORTH AMERICAN GOVT. AFFAIRS IPC
"A strong U.S. electronic industry requires a holistic approach - one that combines targeted investments and incentives, with policies that promote mutually beneficial trade partnership. Trade is crucial to innovation, cost-competitiveness, and supply chain resilience. Tariffs could increase costs for American companies and drive production overseas.
ZOLTAN VAN HEYNINGEN EXECUTIVE DIRECTOR, U.S. WOOD COALITION
We welcome President Trump's measures and the focus of his administration on Canada's unfair trading practices. We are especially pleased that the President has launched the Section 232 Investigation under the Trade Expansion Act of 1964 focusing on the imports of softwood lumber.
MARK COMPTON EXECUTIVE DIRECTOR THE AMERICAN EXPLORATION & MINING ASSOCATION
We are encouraged that the Trump administration is prioritizing the production and processing of domestic minerals so we can have the raw materials our manufacturing base, and society needs. We are looking forward to working together with the administration in order to ensure that the domestic mining industry can meet this challenge.
TONY REDONDO, FOUNDER AT COSMOS CURRENCY EXCHANGE
Intel is not immune to the cost increases caused by imported chips. Semiconductor giants such as Nvidia are also affected. China's retaliation against rare materials may worsen shortages.
PC makers (Dell and HP) may face cost increases of 10%-25%, which could add $200-$500/unit to the unit price, causing margins to be squeezed or prices to rise.
The cost of chips and steel may cause delays for AI server companies (Nvidia and Amazon).
Construction and retailers like Walmart could also be affected.
"Short-term, higher costs and chaos." "Long-term, maybe more U.S. Manufacturing but labor and infrastructure are lagging."
Consumers will face higher prices by 2025, unless companies absorb the costs. This is not common.
BERNSTEIN ANATOMY
"We are concerned that the vehicle and part tariffs will be here to stay, and they will add a significant cost burden to this sector." We see more downside risk for automotive stocks if automotive tariffs do not get reversed, but are instead extended.
TOM MADRECKI VICE-PRESIDENT OF SUPPLY CHAIN RESILIENCY CONSUMER BRANDS AFFILIATION
The majority of consumer packaged goods are already manufactured in the United States. There are some critical inputs and ingredients that must be imported because they are scarce in the United States. Tariffs alone will not bring these ingredients back to the U.S.
"Reciprocal Tariffs that don't reflect the availability of ingredients and inputs will increase costs, limit access to affordable products for consumers and unintentionally hurt iconic American manufacturers." We urge President Trump and his advisors to refine their approach to exempting key ingredients and inputs, in order to prevent inflation and protect manufacturing jobs.
LENNY LARCCA, KPMG U.S. AUTOMOTIVE LEADERS
"U.S. Automakers are looking for steps they can take to mitigate tariffs in the short term, such as working on items that can be shipped to the U.S. rapidly without major investment." Massive longer-term investments require more time and clarity."
The current playbook of the U.S. automobile industry is insufficient, and it's a momentous time for them. Automakers have an opportunity to change the way they do business. Leverage emerging technologies like AI in all areas of their business. Explore and make alliance decisions faster. "Speed up the vehicle production cycle time."
This watershed moment presents an opportunity for mergers and purchases.
DAVID McCALL, PRESIDENT UNITED STAINWORKERS INTERNATIONAL
We must make sure that our trade policy is aimed at cheaters and not trusted economic allies such as Canada. We should work to build relationships, not barriers, with partners who have shown their commitment to join us in tackling the global overcapacity.
The administration must also take measures to prevent companies using tariffs to increase prices on consumers.
MIKE HAWES is the CEO of UK's Society of Motor Manufacturers and Traders.
The tariffs cannot be absorbed, and the U.S. consumer may pay more for British products, while UK producers could have to reduce production due to a constrained market.
SETH GOLDSTEIN MORNINGSTAR ANALYST FOR U.S. SETH GOLDSTEIN, MORNINGSTAR ANALYST ON U.S.
"I expect lower volumes due to tariffs." Tariffs are likely to be passed on to the consumer in order to increase prices of products. "I expect that consumers will buy less goods."
Due to the high fixed costs of chemical production, lower volume would have a large impact on profits. We could also see another year with declining profits if tariffs are widely implemented. Many chemical producers manufacture their products in the U.S. for domestic sales, so there is less direct impact.
DAVID FRENCH EXECUTIVE V.P. OF GOVERNMENT RELATIONS AT THE NATIONAL RAILWAY FEDERATION
"More Tariffs = More Anxiety and Uncertainty for American Businesses and Consumers. Tariffs represent a tax that is paid by U.S. importers and passed on to the final consumer. No foreign country or supplier will pay tariffs. "We encourage President Trump, to hold trading partners responsible and restore fairness to American businesses without creating uncertainty or higher prices for American consumers."
ART WHEATON DIRECTOR, ILR SCHOOL CORNELL UNIVERSITY, LABOR STUDIES
It will take years and billions to bring new manufacturing jobs online. However, expansions in existing factories can happen much faster. Companies prioritize stability. Frequent policy changes can slow down investment decisions, as businesses wait to see clearer long-term signals.
MICHAEL ASHLEY SCHULMAN IS A PARTNER AT RUNNINGPOINT CAPITAL ADVISORS AND THE CIO.
"Trump may be trying not only to bring manufacturing back to the U.S. but also to increase the economic instability of China by putting tariffs on Chinese goods. Tariffs of 34% on Chinese products could force Chinese manufacturers to shut down, leading to increased unemployment and social unrest in China.
If these tariffs are imposed, they will have a significant impact on the PC, server, and semiconductor manufacturers.
Investors, analysts and politicians will all be watching with bated breathe to see what happens after this 'Liberation Day volley' from the administration. The announcement today is likely to be a worst case scenario. Hopefully, any negotiations will lead to improvements. Reporting by Juby B. Babu from Mexico City; Vallari Srivastava in San Francisco; Abhirup Roy and Caroline Humer at New York City; Nick Brown, Shounak D. Dasgupta, and Alan Barona for the editors.
(source: Reuters)