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How much will a seat cost? US businesses are already feeling the impact of Trump tariffs
A manager of a toy shop is bombarded with daily notifications about price increases. A lip balm producer forecasts an increase of $5 million in the cost of goods. The impresario of a concert venue was surprised by a $140,000 price increase to install new seating in the performance hall. The business owners are among 12 managers and business owners who have spoken with about President Donald Trump's new tariff regime. They provide an early indication of what more Americans may expect. Businesspeople expressed their concern over the continued economic turmoil. Trump increased tariffs on Chinese imports while announcing a 90-day tariff freeze on dozens countries. The tariffs are now effectively 145% higher when the levies from earlier in the year are considered. After a week of erratic trade taxes, he kept tariffs at 10% on imports from the majority of other countries for 90 days. Tariffs on Canada, Mexico and other countries that are not covered by trade agreements remain at 25%. Steve Shriver, founder and CEO at Eco Lips in Cedar Rapids Iowa, said, "We are constantly dealing with uncertainty about the future, and our future supply chain." The company makes organic beauty and health products using ingredients from over 50 countries, and sells them to 40,000 stores across the country. Its annual sales are around $30 million. Shriver, on the day Trump announced his pause, sent a note to 300 clients who use Eco Lips' products under their own brands, informing them that the prices would be increasing and the delivery dates would be extended. "I don’t trust it. This is a 90 day pause. Shriver stated that it could change in 10 days. "There is still a 10% tariff across the board. That's a significant addition to our price." Shriver predicted that his cost of goods for the next 12 months could increase by $5 million. This is on top of his usual $10 million annual expenditure, which includes ingredients such as cacao, coconut oil, and vanilla that can't be grown in America. Some businesspeople have cancelled purchase orders, stopped expansion plans, and delayed hiring. "WE'RE SCRAMBLING" Shriver and other said they had received notifications of price increases from suppliers and that they have already increased their own prices. Trump announced tariffs to correct what he called unfair trade imbalances. Trump has also imposed tariffs to achieve goals such as keeping out illegal drugs and migrants, and encouraging domestic production. Paul Kusler’s Into the Wind, a kite and toys store in Boulder, Colorado that has been open for 45 years, has an annual revenue of about $2.5 Million. Kusler's sells a lot of goods that are made in China. "The tariffs against China are simply ineffective, and it's a serious risk to our business," Kusler said, standing among a sea colorful kites. Frisbees. Puppets. Stuffed animals. "We pay our bills every week. "These price increases are occurring now for items that I already have on the door." Kusler stated that the price increases he's seen are between 7% and 10 percent. However, this is due to the short period of time when tariffs on China reached 34% after Trump announced the trade taxes in April. Kusler believes he will be able to absorb an increase of around 3%. He said that the economic turmoil has suppressed demand for his products and will continue to do so. He said that people would not buy toys when they were worried about the rising prices of food and other essentials. Emily Ley is the owner of Simplified in Pensacola Florida, which specializes in office planners designed for women. She said that, since Trump announced tariffs against Chinese goods during his first term in 2017, she had paid over $1 million to the U.S. Treasury in trade taxes. She predicted that she would be able to match the $1 million in the next year at the new tariff rate for China. Ley claimed that she had tried to manufacture her products in the U.S. for many years, but couldn't find a way to make money. She said, "This could end our business." We're scrambling to figure out what to do. Ley has taken the step of suing the U.S. Government, claiming that the tariffs are unconstitutional and rely on statutes which have nothing to do. Aisha Ahmed-Post, the executive Director for the Newman Center for the Performing Arts, at the University of Denver in Denver, Colorado has been managing a major refurbishment for more than a full year. She replaced all 971 seats inside the June Swaner Gates Concert Hall. Newman Center evaluated chairs made by two U.S. manufacturers and one Canadian manufacturer. The chairs of one American manufacturer were way over budget, and the chairs of the other required harsh solvents for maintenance. Ahmad-Post purchased chairs for $560,000 from Montreal-based Ducharme in early 2024 and blocked out six weeks of shows to install the chairs by mid-July. On March 5, Ahmad-Post was notified by Ducharme to "apply tariffs corresponding to your project" and comply with Trump's new trade taxes. The tariffs were 25% at the time. This meant an increase of $140,000 in the Newman Center Seat Project, which was not welcome for a school that is still rebuilding its rainy-day fund after the COVID-19 Pandemic depleted it. Ahmad-Post stated that "the chairs are already being produced, so it's impossible to just change direction." Now we have to figure out how to pay for it. (Reporting from Brad Brooks, Boulder, Colorado and Rich McKay, Atlanta, Georgia. Editing by Donna Bryson, Matthew Lewis and Matthew Lewis.
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Oando pipelines, located in Nigeria's oil rich Bayelsa State, are the target of sabotage.
Oando Plc, a Nigerian oil company, said that three sabotage attempts had been made against its pipelines over the last week in the oil rich Bayelsa State in the south. Oando, the company that now owns Eni’s former Nigerian Agip Oil Co., reported late Friday the incidents involving the 18-inch Tepidaba - Brass crude oil pipeline and the 24-inch Ogboinbiri/Obiobi link in Southern Ijaw District. A spokesperson in a press release said that the company had activated an emergency response team to contain the damage and sent leak repair teams to affected sites. Oando has said that it is working closely with the authorities to carry out a joint investigation to determine the cause and extent of the sabotage. Oando stated that the company would begin full-scale repairs after the visit to "resume operations as quickly as possible". Oil majors such as Shell, Exxon Mobil and Total have all sold their shallow-water and onshore fields in Nigeria, to focus on deep-water operations. Tife Owolabi reports from Yenagoa, Elisha Gbogbo writes and William Mallard edits.
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RWE Drops Bubble Curtain to Silence Construction Noise at Sofia Offshore Wind Farm
RWE has deployed a bubble curtain technology in the U.K. for the first time to protect marine life from the construction noise at its Sofia offshore wind farm.RWE has been working with Hydrotechnik Offshore to introduce an innovative underwater noise-abatement technology, known as a bubble curtain, for offshore wind farm construction in the U.K.The deployment at the Sofia offshore wind farm, located 195km off the coast of England, represents a significant step in protecting marine life from underwater noise generated during piling activities.The bubble curtain, already adopted across Europe, reduces the propagation of underwater noise by creating a barrier of rising bubbles around the turbine installation site.By dampening sound waves, this technology mitigates disturbances to marine species such as harbour porpoises, dolphins, and whales, which rely on ultrasound for orientation.The system works by placing a perforated hose on the seabed around the turbine installation site, forming a 180-meter-wide ring.Compressed air is pumped through the hose, generating a continuous stream of bubbles that rise to the surface. It is this bubble barrier which effectively breaks up and slows down the sound waves, significantly reducing noise levels during piling operations.The adoption of the bubble curtain at Sofia reflects RWE’s dedication to sustainability and marine conservation. The project is situated within the Southern North Sea Special Area of Conservation (SAC), a protected zone for harbour porpoises, where noise disturbance regulations are strictly monitored.“By introducing the use of a bubble curtain on a trial basis, we are strengthening our commitment to environmental responsibility. Projects like this can ensure offshore wind energy can be developed sustainably, with minimal impact on marine life, taking cognisance of working with a Special Area of Conservation,” said Matthew Swanwick, RWE Sofia Project Director.The Sofia offshore wind farm, currently under construction on Dogger Bank, 195 kilometres from the nearest point on the U.K.’s north east coast, will comprise 100 Siemens Gamesa 14 MW offshore wind turbines.Upon its commissioning in 2026, the Sofia project will have a capacity of 1.4 GW, enough to power the equivalent of 1.2 million typical UK homes.
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Ten trading days that rocked financial markets
Shuntaro Sayuchi said that the pain was a 10/10. His appendix, not his portfolio of Japanese stocks, which he manages out of San Francisco in California. The truth would come out just as Matthews Asia's colleagues were on the phone to plot a course for the $7 billion asset management firm through an intensifying market downturn. Takeuchi said, "I was on the conference call just two minutes before surgery." The nurse asked: "Do you have to be here?" Tokyo's Nikkei index was heading for a 4% decline on Wednesday, and global equity markets were losing trillions of dollars, the biggest dollar value drops in history. Since President Donald Trump imposed tariffs on automakers, the 10 trading days have seen the biggest swings in the price of everything from stocks, bonds, oil, and gold to the U.S. Dollar itself. The selling of U.S. Treasuries, the safest asset on the global market and the cornerstone of international trade, was the most intense in decades. It seemed to be a way to show how much the foundations for finance and trade have been weakened. The meltdown started after what Trump called "Liberation Day". On April 2, he raised the highest wall of trade tariffs around the U.S. economic system in 100 years, with a blanket tax of 10% on imports as well as higher rates for individual trading partners. The week after that, it has become an open economic conflict between the United States and China. By Friday, China was under a U.S. embargo on trade as tariffs reached 145%. During the wild ride that began on April 2, more than $5 trillion of market value vanished from the MSCI world stock index. The roller-coaster ride since April 2 has revealed how investors were not prepared for Trump's aggressive tariffs, and that his unpredictable nature and reversals could harm the United States' position as the financial centre. Geoff Wilson is a veteran Australian fund manager. He said, "We have seen a fracture in confidence. We don't yet know the second-order consequences of the market's fall." The next few weeks will reveal the full extent of any consequences. His funds were buyers during the turmoil. TOMB SWEEPING The initial focus of the selling was on any exposure to economic growth, including banks, industrial metals, and companies such as Apple that have supply chains in China. China then retaliated by imposing a 34% duty on all imports from the U.S., shortly before sunset on April 4, tomb sweeping day, a national holiday for paying respect to ancestors. The main global stock index has surpassed the threshold of what is called a "correction", a drop of at least 10% from its peak. Even gold, a safe haven during turbulent times, began to tumble, a sign of doom as investors faced with margin calls had to sell their most secure assets to cover losses. Wong Kok Hoi is the founder and CEO of APS Asset Management, based in Singapore. He has been worried about this scenario for many years. He said that he had never imagined tariffs could rise to 125%. In the days following, tit-fort-tat levies increased. The two biggest economies of the world will cease to trade. He said that his portfolio had grown by around 20% this year. TRADE WAR Wall Street bankers listened in on global meetings to try to calm down clients. Last weekend, there were hopes that Trump would give in before tariffs are implemented. On Sunday, after a golfing weekend, reporters asked him what markets were on Air Force One. He replied "sometimes you need to take medicine." This opened the floodgates. Nasdaq futures soon fell more than 5%, and Nikkei Futures sank 8% before hitting a circuit breaker. The CBOE Volatility Index - Wall Street's fear gauge - spiked over 60, a level that is usually seen in meltdowns like 2020 or 2008 financial crisis. The S&P 500 ended the day 17% lower than a record high that it had reached just seven weeks prior. Christopher Forbes, CMC Markets' head of Asia, said that Friday and Monday had the highest trading volume ever. Takeuchi in California was not only rushing to have surgery but also trying to protect his portfolio. He said that he traded, buying and then selling stocks when they hit the target price or were at a good buy. He looked for companies with limited U.S.-exposure, without wanting to bet on specific sectors or Trump's trade policy. I don't want it to sound too dramatic. We are not in a panic. We control the risks and concentrate on stock selection. BOND FIRE Currency markets have been the main target of price adjustments for tariffs. Bonds were the real shocker. In the early morning hours of Wednesday, just after the tariffs went into effect in New York's middle of the night, Treasuries were hit by a huge wave of selling in Asia. The yields, which are usually small because the market is liquid, exploded and released the most manic phase of the markets' tariff tantrum. The yield on the 10-year Treasury bond jumped by nearly 20 basis points within two hours. Traders interpreted this as either a sign of forced selling in some part of the market or, more alarmingly, that U.S. government bonds are no longer a safe-haven. Within hours, the markets were once again thrown into turmoil. Trump shocked the world when he announced a pause in the higher bilateral tariffs. He also kept a 10% blanket tax on imports while raising levies on China. The stock market roared to new heights, registering some of the biggest percentage gains since 2008. However, with all the uncertainty, they are now starting to tremble again. WHIPLASH Martin Whetton is Westpac's director of financial markets strategy. He has spent 30 years on the markets of Sydney and London. He said: "The fact that money didn't scramble for U.S. Dollar funding to buy Treasuries or the U.S. Dollar as a safety net is shocking and a stark warning." On Friday, the 11th session after Trump announced his auto tariffs, fatigue had set in, but little dust was settled. Beijing increased its tariffs against U.S. imports by 125% on Friday. Stocks dropped, the dollar fell to its lowest level in a decade against the Swiss franc as a safe haven and the talk turned towards whether this period marked the beginning of an end to U.S. financial dominance. Jack McIntyre is the portfolio manager at Brandywine Global U.S., which manages assets worth almost $60 billion. "You concentrate on what you know," said he, with an eye to further drops in the dollar, as the U.S. economic slowdown continues and the rest of world may continue selling U.S. asset.
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Southern California Edison announces a $925 million plan for rebuilding after the LA wildfires
Southern California Edison, a subsidiary utility Edison International said it submitted a plan on Friday to rebuild areas in its service area that were destroyed by the Los Angeles fires of January. SCE stated that the preliminary plan, which was presented to California Governor Gavin Newsom, is estimated to cost between $925 million and $860 million. Securing alternative funding sources, they added, was crucial to make this plan a success. Wildfires ravaged LA beginning on 7 January, causing dozens of fatalities and the destruction of thousands of homes. The cost of the disaster is estimated to have been the highest in U.S. History. Although the cause of the fires is not known, there are several lawsuits that claim SCE towers and power lines in Altadena caused the Eaton Fire. SCE was also sued by LA County and Pasadena City. The company stated on Friday that the investigation is ongoing and "remains dedicated to transparency with the general public". The preliminary plan will also focus on undergrounding the power lines located in Altadena, Malibu and Los Angeles County. Reporting by Vallari Shrivastava, Bengaluru. Editing by Shinjini Ganuli
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As the turbulent week ends, US bond yields are rising and the dollar is down.
The benchmark 10-year U.S. Treasury Yields recorded their largest weekly increase in more than 20 years on Friday. Meanwhile, the dollar fell in a turbulent, trade-war-driven week. Gold prices reached another record on Friday, after Beijing raised its tariffs against U.S. goods to 125% in response to President Donald Trump's decision. Investors have been thrown into a wild swing this week after Trump announced sweeping tariffs. Still, the major U.S. indexes rose by more than 1% in one day as the banks began the earnings season for the first quarter. Susan Collins, the president of the Boston Federal Reserve, also gave assurances that the Fed was prepared to maintain financial markets if necessary. The three main U.S. stock indexes rose dramatically for the entire week. The yields on ten-year Treasury bonds jumped significantly this week. Trading volumes were well above the average. This was due to fears that China could be selling a large part of its U.S. Bond holdings following the announcement of U.S. Tariffs. Tim Ghriskey is a senior portfolio strategist with Ingalls & Snyder, based in New York. He said that there would be a lot of rumors. The Treasury market was stabilized by the strong auctions on Wednesday and Thursday of 30-year and 10-year bonds, but investors are still hesitant to buy bonds until liquidity improves. The yield on 10-year notes was up 8.6 basis points in the last day, to 4.478%. It reached its highest level since February 13th at 4.592%. The weekly growth rate was the highest since 2001. Concerns about The U.S. Trade Policy made euro-denominated investments appear more secure than their counterparts in dollars. The benchmark yield for the eurozone bloc, the German 10-year bond, fell 5 basis points to 2.53% last Friday. JPMorgan Chase reported earnings along with Morgan Stanley and Wells Fargo. The results were mostly better than expected for the first three months. JPMorgan shares rose 4%. Investors will be looking to see if U.S. firms continue to provide guidance during earnings. The Dow Jones Industrial Average rose by 619.05 or 1.56% to 40,212.71. The S&P 500 gained 95.31 or 1.81% to 5,363.36. And the Nasdaq Composite advanced by 337.15 or 2.06% to 16,724.46. The Nasdaq recorded its largest weekly percentage gain since Nov 2022. The MSCI index of global stocks rose by 11.36 points or 1.46 percent to 790.63. However, the pan-European STOXX 600 ended with a 0.1% decline. Investors digested two reports: one showing that the U.S. consumer's sentiment declined sharply in April, and another showing that U.S. producer prices fell unexpectedly in March. The dollar fell 0.9% to 0.81650 Swiss Francs, continuing the losses from the previous session where it plummeted to its lowest level in January 2015. The dollar is set to have its largest weekly decline since November 2022. Dollar-euro exchange rate also reached a new low. Gold spot was up 2% to $3,236.67 per ounce after reaching a session high of $3.243.82. Bullion has risen over 6% in the last week. Prices of oil also rose. Brent crude futures ended at $64.76 per barrel, an increase of $1.43 or 2.26%. U.S. West Texas Intermediate finished at $61.50 per barrel, an increase of $1.43 (or 2.38%).
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Pennsylvania man charged with threats to kill Trump and immigration agents
The U.S. Justice Department announced on Friday that a Pennsylvania man was charged with online threats to kill President Donald Trump and immigration officers. Shawn Monper (32), was charged with four counts on Wednesday of threatening to kill a U.S. government official in order to impede the official duties. The criminal complaint was filed at federal court in Pittsburgh. In a press release, Attorney General Pam Bondi stated that "you can rest assured that this Department of Justice, wherever and whenever threats of mass violence or assassination occur, will find, arrest, and prosecute the suspected to the fullest extent of law and seek maximum appropriate punishment." Monper, between February and April, made several comments to YouTube threatening to kill Trump, high-ranking U.S. officials, and Immigration and Customs Enforcement agents, according to the lawsuit. Monper wrote, "Nah we just need start killing people. Trump, Elon and all the heads appointed by Trump. And anyone who stands between us," in a message that was cited in he complaint. Elon Musk, a billionaire businessman, has been an advisor to Trump during his campaign to downsize the federal government and reshape it. The defendant has yet to enter a plea. The defendant has been in U.S. custody awaiting a hearing on Monday. Monper is a native of Butler, Pennsylvania. Trump was the target of an assassination last July when he ran for president. (Reporting and editing by Andrew Goudsward)
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Source: US and Ukraine have tense discussions as mineral deal is still elusive
Sources with knowledge in the matter say that U.S. officials and Ukrainian officials met Friday to discuss a U.S. plan to gain access to Ukraine’s mineral wealth. However, they also said the chances of a breakthrough are slim, given the "anti-social" atmosphere at the meeting. Source: The tensions in Washington stemmed from Trump's latest draft proposal which is more expansive than its original version. The source pointed out that the "maximalist draft" submitted by the Trump Administration last month was a sign of the hostile negotiating climate. A spokesperson for the Treasury Department confirmed that discussions were "technical" in nature. The latest draft would grant the U.S. exclusive access to Ukraine's minerals deposits, and Kyiv must place all earnings from the exploitation by Ukrainian state-owned and private companies of natural resources in a joint fund for investment. The proposed deal would not, however, provide U.S. guarantees of security to Kyiv, a priority for Ukrainian President Volodymyr Zelenskiy, in its fight against Russian forces that occupy about 20% of Ukraine's territory. One of the "Easter Eggs" in the document, according to the source, was the U.S. request that the International Development Finance Corporation of the U.S. take control of a gas pipeline that runs from the Russian energy giant Gazprom through Ukraine and into Europe. Source: The Ukrainian government hired Hogan Lovells to act as outside advisors on the mineral deal. Zelenskiy said on Wednesday that a mineral deal could be structured to help modernize Ukraine and be profitable for both parties. In two weeks, top Ukrainian officials such as Prime Minister Denys Schmyhal and Finance Ministry Serhiy Marenko will be in Washington for meetings with the International Monetary Fund (IMF) and World Bank. This includes a ministers' gathering on April 25 that will focus on Ukraine. As part of his efforts to end the conflict and to recover billions in U.S. Military assistance to Kyiv, U.S. president Donald Trump wants a deal that covers Ukraine's minerals. This includes rare earths. (Reporting and additional reporting by Gram Slattery, writing by Jonathan Landay, editing by Don Durfee & Cynthia Osterman).
FT reports that Trump intends to stockpile metals from deep seas in order to combat China.
Financial Times, Saturday, reported that the Trump administration was drafting an executive directive to allow the stockpiling deep-sea materials to counter China's dominance of battery minerals and rare earth supply chain.
The report said that the plan would create "large quantities available and ready to use on U.S. soil in the future" in the event of a conflict between the United States and China, which could restrict imports of rare earths and metals.
As part of President Donald Trump's response to the tariff package, China imposed export restrictions on some rare earth elements, which could cut off the U.S. from minerals essential to everything from electric car batteries to smartphones.
Report added that the stockpile was being considered as part a larger push to speed up deep-sea mine applications under U.S. laws, and create onshore processing capability.
China produces 90% of the world’s refined rare earths. This group of 17 elements is used in the electronics, defense, electric vehicles, and clean energy industries. Most of the rare earths that are imported by the U.S. come from China.
Requests for comment from the White House and China’s Foreign Ministry were not immediately responded to. Reporting by Rajveer Pardesi, Bengaluru. Editing by Mark Potter
(source: Reuters)