Latest News
-
Angola's Finance Minister says that country stress testing for lower oil prices and IMF program is more likely
Angola runs stress tests to assess the impact of a drop in oil prices on the government's finances, said Finance Minister Vera Daves de Sousa on Friday. She added that this situation makes a request for a loan program from the IMF more likely. After U.S. President Donald Trump's announcement of sweeping tariffs, Brent oil futures briefly fell below $60. This was the lowest level for four years. The contract closed at $66.91 per barrel on Friday. Daves de Sousa said in an interview at the International Monetary Fund Spring Meetings in Washington that "we are rolling out stress tests scenarios." De Sousa explained that a decline of less than $45 in oil prices would require an additional budget. She said that the government is working to improve tax administration, increase enforcement of property taxes and mitigate the effect of lower oil prices. Many smaller and riskier emerging countries, including Angola have felt the impact of recent volatility in fixed income markets, particularly U.S. Treasuries. Angola was forced to pay $200m earlier this month when JPMorgan issued an margin call on a $1billion total return swap, a loan that the lender issued in December and which was backed by dollar bonds issued by Angola. De Sousa stated that she was in discussions with JPMorgan about measures that could be taken to avoid a margin call. She also said that investors and rating agencies had not given her any negative feedback on the payment. She said that there were no negative connotations. Instead, they were surprised at how quickly we had been able to raise such a large amount of money. The government is currently examining the possibility of requesting an IMF financing program. De Sousa, when asked about Chinese loans backed with oil, said that the government would have to pay another $8 billion. It expected to be in a position to pay this back by 2028, rather than 2030-2031 as originally anticipated. Angola is also borrowing more money, mainly from China's EXIM Bank, but this money was not secured by collateral, it was concessional, and allocated to specific projects, such as improving internet capability in rural areas, or improving education. De Sousa stated that Angola would love to tap into international capital markets, but does not plan to do so for the time being. We want to go on the market but with the way things are going, this isn't the right time. We will keep an eye on it to make sure we are prepared for the next time. De Sousa said that officials from the Trump administration had confirmed in Washington, in meetings held there, their commitment to fund the Lobito railway corridor without specifying the exact amount. The project is designed to transport vital minerals from central Africa's copperbelt into the West. (Reporting and editing by Paul Simao; Karin Strohecker)
-
The global trade situation is further complicated by the contradictory statements of US and China.
In an interview published Friday, U.S. president Donald Trump claimed that tariff negotiations with China were in progress, but Beijing denied there were any talks taking place. This is the latest in a string of contradictory signals about what progress has been made in de-escalating a trade conflict that threatens to sap global economic growth. Trump told TIME that talks were underway and that Chinese President Xi Jinping called him. He repeated this claim to reporters on his way out of the White House to Rome for the funeral service of Pope Francis. China responded in a statement from its foreign ministry posted by the Chinese embassy in the U.S., "China and the U.S. have NOT been in consultation or negotiations on #tariffs." "The U.S. shouldn't be creating confusion." Speaking to reporters on Air Force One, Trump said that it would be a great win for the United States if China opened its markets to U.S. goods and that tariffs might help make this happen. "Free China. "Let's go into China and work it," he said. "That would be fantastic. It would be great, but I am not sure I will ask for it. They don't want the door open. The back and forth added to the uncertainty over the current state of play regarding Trump's erratic policy. Not only in regards to China, but as it pertains the dozens countries scrambling for their own deals to relieve the burden of hefty import tax he unleashed after returning to the White House. His team of negotiators conducted what was a lightning round trade talks with the foreign officials that had flooded Washington this week to attend the spring meetings for the International Monetary Fund (IMF) and World Bank Group. While Trump officials, including Treasury Secretary Scott Bessent, touted signs of rapid progress, their counterparts, such as the finance chiefs from the IMF, were more circumspect. They were also urged to return home urgently in order to reduce the risk posed by the tariffs. Paschal Donohoe, Irish Finance Minister, said: "I am walking away from these meeting with a clear understanding of what is at stake, and the risks there are for jobs, growth, and living standards around the world." The meetings here reminded me why we must leave no stone unturned over the next few months and weeks to find ways to reduce uncertainty. DE-ESCALATION There were some signs of de-escalation, even though it was unclear whether or not deals would be struck to prevent the imposition of higher tariffs in early July. China has exempted certain U.S. products from its high tariffs. Business groups claim that Beijing allowed U.S. pharmaceuticals to enter China without paying the 125% duty it imposed in response to Trump’s 145% tariffs. A list of 131 categories of products that are allegedly being considered for exemptions is also circulating in some business and trade groups. The list includes chemicals, vaccines and jet engines. China has yet to make a public statement on the matter. Trump's administration also signaled in recent days that it was looking to defuse tensions with China. Bessent said both sides view the current situation as untenable. Trump also told reporters in the White House that an agreement with Japan was close. Analysts see this as a test case for other bilateral agreements, even though the talks may be difficult. Many expect Shigeru Shiba, the Prime Minister of Japan, and Donald Trump to announce an agreement when they meet in Canada at the G7 Summit in June. Trump told TIME he made "200 deals", which he said would be finished in three to four weeks. He declined to give specifics. He said that if tariffs remained between 20% and 50% in a year, he would call it a victory. Trump has claimed that his thickets of trade barriers would revive U.S. Manufacturing Industries that have been hollowed by global competition. However, economists warn that this would increase prices for U.S. customers and the risk of recession. U.S. stock indexes are on track to gain a week, even though they have fallen by about 10% since Trump took office in January. They lag other countries' indexes, and the dollar is falling at an unprecedented pace. The dollar rose for the first time in over a month on Friday, while European and Asian shares were headed to a second consecutive week of gains. Investors took comfort from signs that the U.S. was willing to end its trade war with China. Wall Street's major indexes grew slightly as investors sought clarity on the U.S./China trade front. Trump has imposed additional tariffs on autos, steel and aluminum in addition to country-specific duties. Trump has also proposed additional levies for the pharmaceutical and semiconductor industries. According to industry estimates, this could lead to a 12.9% increase in drug prices across the U.S. The tariffs of Donald Trump dominated the IMF meetings in this week. Finance ministers vied for one-on-1 meetings with the U.S. Treasury secretary. Bessent described the initial talks with South Korea on Thursday as "very succesful." Seoul referred to it as a "good beginning." Next week, further discussions will take place. Switzerland said that it was also satisfied with the initial meeting between Bessent and Switzerland. The U.S. Trade Office said that it was "constantly engaging" with Japan and others, but Trump would decide whether or not they proceed. The IMF's Kristalina Gheorgieva warned that the lack of progress in other countries could lead to a serious slowdown of global growth. Reporting by Bureaus Worldwide; Writing by Andy Sullivan, Dan Burns and Editing by Chizu Nomiyama, Marguerita Choy
-
Dollar gains and tech shares are boosting the stock market
The majority of stock indexes rose on Friday. The Nasdaq was up over 1% during afternoon trading, as shares related to tech gained. Meanwhile, the dollar is headed for its biggest weekly gain in more than a month. Alphabet, the parent company of Google, saw its shares rise 1.5% on Nasdaq after exceeding profit expectations and reaffirming AI spending targets. This earnings season, uncertainty surrounding the impact of U.S. president Donald Trump's tariff offense and the global trade tensions that resulted have dominated the results calls. Trump claimed in an interview published on Friday that tariff talks with China were in progress, but Beijing denied there were any discussions taking place. This is the latest of a series conflicting signals about what progress has been made in de-escalating a trade battle that threatens to sap global economic growth. Trump told Time magazine there were talks taking place, and that Xi Jinping, the Chinese president had called him. The tit-for-tat tariffs, which began on April 2, when Trump announced hefty import duties, had threatened to stall the trade between two of the world's largest economies. They also sparked concerns of a global slowdown. Chip Rewey of Rewey Asset Management in New Jersey, an investment adviser registered with the state, said: "This week, you may have felt some relief that the worst-case scenario of Trump's tariff actions will not come true." We haven't yet returned to the highs. "I think we'll be somewhere between those two ranges for a long time." The S&P 500 is expected to rise for the week while Europe's STOXX 600 has risen more than 2% in the past week. The Dow Jones Industrial Average increased 14.98 points or 0.04% to 40,108.31. The S&P 500 gained 33.83 points or 0.62% to 5,518.60. And the Nasdaq Composite increased 182.65 points or 1.07% to 17,349.66. The MSCI index of global stocks rose by 4.47 points or 0.54% to 824.28. The pan-European STOXX 600 ended with a gain of 0.35%. The Nikkei 225 index rose 1.8% in Japan on Friday. It has recovered all of its losses following Trump's announcement that the United States would be imposing the highest tariffs it had ever seen. Trump suspended most of these tariffs, with the exception of China, which will have a 10% tariff. The dollar has recovered slightly in relation to the euro and the yen after taking a hit due to the tariff news. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and others) rose by 0.07%, reaching 99.49. Meanwhile, the euro fell 0.1%, at $1.1377. The dollar gained 0.66% against the Japanese yen to reach 143.56. The price of gold, which has risen this year due to investors seeking safe haven assets that are not tied to the dollar, was last down by 1.94% on Friday, at $3,283.21 per ounce. The yield on the benchmark 10-year U.S. notes dropped 3.7 basis points, to 4.268% from 4.305% at late Thursday. U.S. Treasury rates declined after recent hopes that the U.S. China trade war would ease and investors considered the possibility of the Federal Reserve lowering interest rates if economic activity slowed.
-
Burkina Faso grants mining license to Russia's Nordgold project
The military-led West African Government announced that Burkina Faso had granted an industrial mining license to Russian miner Nordgold to develop a gold project. This was to capitalize on the record high gold prices and strengthen an economy that has been hit by insecurity. The move is a sign of the deepening economic relations between Russia and Burkina Faso as the junta which seized power in Burkina Faso in 2022 continues to pivot away from its traditional Western allies toward Moscow. The Niou gold deposit is located in Burkina Plateau-Central's Kourweogo Province. It covers an area of 52.8 square kilometers (20.44 square miles). This area was previously owned by Jilbey Burkina and now belongs to Nordgold. Nordgold operates the Bissa, Bouly and Bouly mines. The Council of Ministers announced late Thursday that it expected the Niou Mine to produce approximately 20,22 metric tonnes of gold in its eight-year lifespan. Jilbey Burkina retains 85% of the project while the Burkinabe Government will own the remaining 15%, without any financial contribution. This is in line with the new mining regulations in the country. The council of ministers stated that the project would contribute over the course of its life 51.5 billion CFA Francs ($89million) to the budget and 7.06 billion CFA Francs to the mineral wealth fund. The geopolitical instabilities and the trade policies of U.S. president Donald Trump have driven gold prices up by more than 25% this year. Burkina Faso is a major producer of gold. The country has been fighting jihadist militants in Burkina Faso since 2015. Swissaid, a non-governmental organization that analyses mining, estimates the country's production at over 57 tonnes in 2023. There are several mining companies in the region, including Endeavour Mining and IAMGOLD from Canada and West African Resources Ltd. The cooperation with Nordgold, and other industrial mines are important for Burkina Faso's government as it faces budget constraints. Ulf Laessing is the head of the Sahel program at the Konrad Adenauer Foundation in Germany. He said that the Niou project would be located in an area of large artisanal mines and could deprive people who work as artisanal gold miners from important income. The government stated that the mine would create 204 jobs and also help sustain employment at Bissa Gold SA, which is located nearby. (Reporting from the newsroom, with additional reporting by Maxwell Akalaare Adombila. Editing by Maxwell Akalaare Adombila and Portia Crowe.
-
LyondellBasell's quarterly profit forecast is missed due to weak volume
LyondellBasell missed Wall Street's expectations of quarterly profit on Friday due to maintenance downtime, lower volumes and its largest segment, supplying raw materials for the automotive, construction, and electronics industries. The chemical industry has been suffering due to a slump in demand and the rising cost of raw materials, particularly in Europe. Businesses are also being forced to reconsider their strategy in the region due to the strict regulatory environment. LyondellBasell has launched a $500 million initiative to increase earnings in order to navigate the continued macroeconomic volatility. The company stated on a earnings call that they have cut costs by around $300 million due to portfolio management measures such as refining exits from businesses and a strategic review of their European operations. LyondellBasell said it will provide an update on five European assets that are still being reviewed by the middle of the year. Eastman Chemical announced on Thursday cost-cutting initiatives in response to the market volatility. This was partly due to renewed trade concerns resulting from President Donald Trump’s tariff policies. The business activity in the Eurozone barely increased in February as a slight increase in services barely compensated for the ongoing decline in manufacturing. LyondellBasell’s largest segment in terms of sales volume, olefins and polyolefins, Americas, reported core adjusted earnings of $251 millions, down from the $521 million earned last year as higher feedstock prices impacted margins. The adjusted core profit for its Intermediates & Derivatives segment, which produces oxyfuels, intermediate chemicals and intermediate chemicals, dropped 69.9% from the previous period to $94 millions. In the second quarter, the company anticipates that seasonal demand will improve across all businesses. According to data compiled and analyzed by LSEG, on an adjusted basis the company reported a quarterly profit in the amount of 33 cents. This was below analysts' estimates of 43 cents. (Reporting and editing by Vijay Kishore in Bengaluru, Shailesh Kumar, and Pooja Menon)
-
The FX effect has a negative impact on the pre-tax profits of Chilean miner Codelco
Codelco Chile, the largest copper producer in the world, reported on Friday a slight increase in production for the first quarter. However, this was not enough to offset the exchange rate effects that caused the company's profits to plummet. Codelco reported a 53% decline in pre-tax profits compared to the same period last year, falling to $213 millions for the first quarter of the year. The state-owned company said that its own production increased by 0.3% to total 296,000 metric tonnes, while total production, including its stakes at Freeport's El Abra and Anglo American Sur, as well as Teck's Quebrada blanca, rose 1.6% to total 324,000 metric tonnage. The miner aims to increase output for the second consecutive year after it fell to a quarter century low in 2023. Codelco reported that rains in the first quarter and a nationwide power outage in February reduced copper production by 10,000 tonnes. Codelco reported that core earnings (earnings before interest, tax, depreciation, and amortization, or EBITDA) fell by nearly 12%, to $1.35billion, as the peso currency lost value. The Chilean Peso increased by 2.76 percent from March 2024 until March 2019. Codelco said that the company had experienced rising costs as a result of planned maintenance at mines and plants, as well higher operating costs in equipment leasing. These costs were partially offset by lower input costs, such as power and fuel. The miner stated that the Andesita segment is expected to begin production at El Teniente in the second quarter, followed by Andes Norte in the third. The ramp-up at Rajo Inca in Codelco’s Salvador Division is expected to finish in the third quarter. Reporting by Fabian Cambero, Natalia Siniawski and Alistair Bell; editing by Kyrry Madry and Alistair Bell
-
Dollar gains and stock prices mostly rise on the hopes of a trade war ease
Investors were comforted by signs that the U.S./China trade war was easing. Alphabet, the parent company of Google, saw its shares rise 1.7% on Wall Street after exceeding profit expectations and reaffirming AI spending targets. There is uncertainty surrounding the impact of Donald Trump, U.S. president. Tarif This earnings season, the focus has been on global trade tensions and their impact on offensive. China has exempted certain products from the steep tariffs it imposes on U.S. imported goods. However, Beijing refuted Trump's claim that trade negotiations are underway. The tit-for-tat tariffs, which began on April 2, when Trump announced hefty import duties, had threatened to stall the trade between two of the world's largest economies. They also sparked concerns of a global slowdown. Chip Rewey is the CIO at Rewey Asset Management in New Jersey, an investment advisor registered with the state. We haven't yet returned to the highs. "I think we'll be somewhere between those two ranges for a long time." The S&P 500 is expected to rise for the week while Europe's STOXX 600 has risen more than 2% in the past week. Investors digested an interview Trump gave to Time magazine in which he claimed that high tariffs on imports from abroad a year hence would be a "total win". The Dow Jones Industrial Average dropped 132.71, or 0.33 percent, to 39,960.69. The S&P 500 rose by 4.96 points or 0.09% to 5,489.56, and the Nasdaq Composite gained 55.24, or 0.32 percent, to 17,221.29. The MSCI index of global stocks rose by 1.54 points or 0.19% to 821.40. The pan-European STOXX 600 Index rose by 0.35%. The Nikkei 225 index rose 1.8% in Japan on Friday. It has recovered all of its losses following Trump's announcement that the United States would be imposing the highest tariffs it had ever seen. Trump suspended most of these tariffs, with the exception of China, which will have a 10% tariff. The dollar was slightly higher against the yen and euro, after a turbulent few weeks that saw tariff announcements and reversals, as well as a flight from U.S. assets. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and others) rose by 0.05%, reaching 99.47. Meanwhile, the euro fell 0.04%, at $1.1384. The dollar gained 0.77% against the Japanese yen to reach 143.72. The price of gold, which has risen this year due to investors seeking safe assets that are not tied to the dollar, was last down by 1.94% on Friday, at $3,283.21 per ounce. U.S. crude climbed 0.19% to $62.91 per barrel. Brent rose to $66.71 per barrel, up by 0.24% for the day. The yield on the benchmark U.S. 10 year notes dropped 4.9 basis points from Thursday's 4.305% to 4.257%.
-
China's Baosteel Q1 Net Profit Jumps 26.4% due to Lower Costs
Baoshan Iron & Steel Co., China's largest listed steelmaker reported a 26.4% increase in net profit for the first quarter of this year, thanks to lower costs. However, it warned that rising trade tensions pose a persistent risk. In a filing with the Shanghai Stock Exchange, the company known as Baosteel said that it had earned approximately 2.43 billion Yuan ($333.43 millions) over the past quarter. This is up from 1.93 million Yuan during the same period of 2024. Baosteel reported that despite the challenges of a weak steel market and falling prices, it managed to reduce costs due to the more dramatic fall in the price of coking coal than steel. The report said that steel prices fell 9.9% and coking coal prices dropped by 36.1% in the last quarter. Baosteel reported in a separate filing a 38.4% annual decline in its net profits in 2024, which fell to 7.36 billion Yuan. Baosteel, a subsidiary owned by the China Baowu Steel Group (the world's biggest steel producer in terms of output), is the largest steelmaker in the world. Between January and March, the company produced 11.55 million metric tonnes of iron. It plans to produce 48.79 and 52.61 millions tons of iron in 2025. The company received orders for 1.55 million tonnes of steel last quarter, after shipping a record 6.07 million tonnes of steel in 2024. This represents a 3.9% increase year-on-year. The company stated that "in 2025 the external environment will be more complex and uncertain, and trade tensions risks will remain prominent... Profitability will continue to face downward pressure due to the mismatch between demand and supply."
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)