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Executives, trade and labor associations comment 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. Here are some reactions from executives of companies, unions and trade associations. Companies DANISH SHIPPING GIANT MAERSK "We expect our customers to be more careful about their stock levels." We're likely going to see some air freight rush orders in the U.S. very soon, before the tariffs go into effect. We will also see a rise in the demand for bonded warehouses as customers want to delay clearing their goods until they have more certainty. GERMAN PACKAGING & MEDICAL EQUIPMENT MANUFACTURE GERRESHEIMER Tariffs are primarily affecting our exports to the U.S. from our Mexico-based plant. Injection vials are one example. We will pass on these customs fees to our customers as an additional cost. We will be able, if necessary and if customs duties remain in place for a longer period of time, to move our capacities. Our production network in the U.S. opens up business opportunities with pharmaceutical companies who are increasingly looking to source and produce locally in the U.S. MASSIMO BATTAINI is the CEO of CABLE MAKER Prysmian "At first glance, it appears that the announcement has a positive effect on local production. The tariffs are only applied to the finished product, so there is no risk of U.S. producers being undercut by foreign competitors. We are the best placed in the industry to maintain our leadership. With 30 factories spread across the U.S., we have the most factory capacity. NORWEGIAN ALUMINIUM HYDRO PRODUCER "We work actively from Norway as well as in Brussels, the EU to inform and to actively work with the organizations and other measures we're part of in order to leverage the importance Norwegian aluminium for Europe." We're using our network, and our people are on the ground working with the U.S. Administration to understand the effect of the tariffs. NOBUHIRO TORII, PRESIDENT OF SUNTORY "We will try to sell locally and produce... that's the key with tariffs." ASSOCIATIONS OF WORKERS AND ASSOCIATIONS ANTHONY BRUN, HEAD OF FRENCH GROWERS ASSOCIATION (UGVC) "One might have been frightened by much higher tariffs. However, this risk remains and is associated with a possible conflict over bourbon whisky. Already, we face tariffs from China. Now, there is the U.S. and the consequences are going to be brutal for wine growers. ETHAN LANE SENIOR V.P. OF GOVERNMENT AFFILIATIONS, NATIONAL CATFARMERS BEEF ASSOCIATION "President Trump has taken action to remove numerous trade barriers which prevent overseas consumers from enjoying high quality, wholesome American Beef. NCBA will engage with the White House in order to optimize export opportunities and ensure fair treatment of America's beef producers worldwide. SIGRID de VRIES, DIRECTOR GENERAL, EUROPEAN MOBILE MANUFACTURERS ASSOCIATION "European automakers have committed to be active in the U.S. and make an important contribution to its economy. They account for about half a million auto-related jobs, will export over 750,000 cars to the U.S. by 2024 and actively invest in local communities in order to foster economic prosperity." "We urge both leaders to meet immediately to find a resolution to any issues that prevent free and fair trading between historical allies, and to allow the EU-US relations to flourish again." SWISS BUSINESS GROUP ECONOMISSE "Another escalation in the trade conflict is to be avoided. Swiss economic diplomacy and the Federal Council are urged to find quick solutions with the U.S. Government at the negotiation table. "From an economic perspective, the U.S. tariffs on Switzerland are not comprehensible - rather the opposite." DIRK JANDURA HEAD OF GERMANY EXPORTERS ASSOCIATION (BGA) "We'll have to pass on these tariffs as price increases and this will impact turnover in many instances." It's an economic dead end that will result in welfare losses on both sides of Atlantic. GIOVANNA CEOLINI HEAD OF CONFINDUSTRIA ACCESSORI - MODA, REPRESENTING ITALIAN FOOTWEAR AND LEATHER, FUR, AND TANNERY INDUSTRIES We are worried that there will be a decline in demand for our products. It will depend on how willing Americans are to pay more. WOLFGANG NIEDERMARK EXECUTIVE COMMITTEE MEMBER, GERMANY’S MAIN INDUSTRY ASSOCATION BDI The justification of this protectionist escalation has no rational basis. It is a threat to our export-oriented businesses and threatens prosperity, stability and jobs in the United States and abroad. The EU should now coordinate its response and strengthen its alliances, with other major trading partners. "A coordinated response is needed to counter the changing flows of international trade." SCOTT WHITAKER, CEO, ADVAMED "These broad-based tariffs 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." CHRIS VITALE, UAW VETERAN WHO RETIRED FROM STELLANTIS, ATTENDED TRUMP'S TARIFF ANNOUNCEMENT IN PERSON The president's words were reminiscent of what I had been saying for years. It was amazing to see him use the same words. Reporting by Juby B. Babu from Mexico City; Vallari Srivastava and Neil Kanatt in San Francisco; Abhirup Roy and Caroline Humer, Nick Brown, and Alessandro Parodi, in Gdansk. Editing by Sayantani Ghosh and Shounak Dasgupta.
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Leonardo, Enel, and Ansaldo in Italy reach agreement on joint nuclear venture
Gilberto Pichetto Fratin, Italy's Minister of Energy, announced on Thursday that Leonardo - a defence company -, Enel - a utility – and Ansaldo Energia – a power generation company – have agreed to form a company to investigate the use nuclear energy. Pichetto, speaking at a conference held in Milan, said that Enel will contribute its expertise to the management of nuclear power plants in Spain while Leonardo can explore the use nuclear energy for the military. "In its first phase, Enel’s head of nuclear innovations, Luca Mastrantonio will concentrate on a feasibility report to select the best technology in nuclear energy," he said. The conservative government of Italy approved earlier this year a law that paved the way for a return to nuclear power, which was prohibited by referendum in 1987. Pichetto, who spoke at the conference via videolink, said that "the regulatory framework is likely to be finished in two and half years." The Italian government says that small modular reactors are the best option for a return of nuclear power, but critics claim it will take over 10 years before they're ready. Francesca Landini is the reporter. Alvise Armllini and Mark Potter edited the article.
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Sources say that OPEC+ Ministers are seen to be sticking to their plans for further increases in oil production.
Two OPEC+ sources told reporters on Thursday that a meeting of eight top ministers in OPEC+ is likely to keep the oil production policy unchanged. This calls for gradual increases in oil output from April. One source said that the talks started shortly after 0900 GMT. One source stated that the ministers will likely emphasize the importance of adhering to the oil production targets. Record Kazakhstan output Sources have said that the move has angered other members, including Saudi Arabia, which is the top producer in the group. OPEC+ has urged the Central Asian nation, as well as other members of the group, to cut further to compensate for excessive production. In May, eight members of OPEC+ (Organization of Petroleum Exporting Countries plus allies, led by Russia) are expected to increase oil production by 135,000 barrels a day. Both sources said that the group was expected to move forward with this plan. This follows similar comments made by other OPEC+ delegates on Tuesday and on Wednesday. The May increase is part of a plan that Russia, Saudi Arabia and the UAE have agreed to implement in order to slowly unwind their latest output cut of 2,2 million bpd. This was implemented this month. OPEC+ has also agreed to cut 3.65 million bpd in other production until the end next year. Reporting by Alex Lawler and Olesya Astakhova. Editing by Louise Heavens.
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U.S. cryptos fall as Trump's tariffs shock markets
U.S. crypto-stocks declined in premarket trade on Thursday, after President Donald Trump’s latest round sweeping tariffs rattled investors’ confidence due to increasing global trade tensions. This sparked a selloff in riskier investments. Coinbase Global, a crypto exchange, fell by about 4%. Major bitcoin holders Strategy also dropped by 3%. MARA Holdings fell about 4%. Riot Platforms dropped about 5%. Bitfarms lost 6%. The wide losses show the impact of tariffs on a variety of asset classes. Bitcoin, the largest cryptocurrency, fell 2.3% while ether plunged 3.3%. Even though Trump's administration has indicated a willingness for crypto to be embraced and a lighter regulatory approach, the broader economic instabilities tied to this sector could still affect companies. Some analysts still said that the changes were not as severe as other industries. The price action highlights the hyper-democratic nature of crypto, which allows investors to hedge against macroeconomic uncertainty. David Hernandez, a crypto investment specialist with 21Shares, said: Marco Iachini is senior vice president for research at Vanda Research. at Vanda Research. However,?? He said that the amount of water could decrease as the situation becomes more unstable. (Reporting and editing by Arun K. Koyyur in Bengaluru)
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Base metals decline as Trump's tariffs increase demand concerns
Investors feared that the new U.S. broad tariffs could halt global growth and impact industrial metal demand. Base metals dropped in London on Thursday, with copper reaching its lowest level in over three weeks. By 0909 GMT, the benchmark three-month price of copper on London Metal Exchange (LME), which had hit $9,485, was down by 1.6% to $9,546.50 a metric tonne. Markets are taking into account the potential negative impact of tariffs on demand and the possible responses from other major trading partners. "We expect the downward trend to continue, at least for the short term," said BNP Paribas' analyst David Wilson. Citi predicts that copper will fall to $8,500 in the third quarter as tariff increases impact global growth expectations, consumption prospects, and risk appetite. BNP Paribas predicts the same level during the second quarter. On Wednesday evening, Donald Trump announced a reciprocal tariff that would raise import taxes to their highest level in over a century. The tariffs also include an additional 34% on imports of metals to the United States from China, which is the largest consumer of metals in the world. China's Foreign Ministry called on the United States "to correct its wrongdoing". The White House did not include copper for which the U.S. Administration is currently conducting a separate investigation into possible new tariffs as well as aluminum and steel that are already subject to 25% duties. The reciprocal tariffs will not apply to "other minerals" that are not produced in the U.S. LME aluminium fell 0.5%, to $2.478 per ton, after reaching $2.448, its lowest level since September 13. A metals trader said that the contract, which has fallen for 11 straight sessions, is being pressured by Commodity Trading Advisors, funds that track momentum using computer models. He believes that this activity will soon fade. Lead fell 0.5% and zinc dropped 1.1% on the LME. Both reached their lowest levels in two months. Nickel dropped 0.5% to $15,880, after reaching a 1-month low. LME Tin was down 3.4% to $36,620. On Wednesday, it hit $38,395, the highest since May 2022. This was due to short-covering as investors feared that the recent earthquake in Myanmar could delay mining and exports. (Reporting from London by Polina Devitt; Additional reporting in Shanghai by Violet Li; Editing by Sharon Singleton).
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QUOTES - Executives, trade and labor organizations 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 increased duties on some of its 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. Here are some reactions from business executives, trade and union associations: Companies KATSUYA NAKANISHI is the CEO of MITSUBISHICORP The CEO of a Japanese trading company said that the firm will be flexible and agile in responding to the effects of tariffs. It will also evaluate the risks and look for opportunities. NOBUHIRO TORII, PRESIDENT OF SUNTORY "We will try to sell locally and produce... that's the key with tariffs." ASSOCIATIONS OF WORKERS AND PARTICIPANTS SWISS BUSINESS GROUP ECONOMISSE "Another escalation in the trade conflict is to be avoided. Swiss economic diplomacy and the Federal Council are urged to find quick solutions with the U.S. Government at the negotiation table. "From an economic perspective, the U.S. tariffs on Switzerland are not comprehensible - rather the opposite." DIRK JANDURA HEAD OF GERMANY EXPORTERS ASSOCIATION (BGA) "We'll have to pass on these tariffs as price increases and this will impact turnover in many instances." It is a blind economic alley that will result in welfare losses on both sides of Atlantic. GIOVANNA CEOLINI HEAD OF CONFINDUSTRIA ACCESSORI - MODA, REPRESENTING ITALIAN FOOTWEAR AND LEATHER, AS WELL AS FUR, TANNERY, AND FURRY INDUSTRIES We are worried that there will be a decline in demand for our products. It will depend on how willing Americans are to pay more. WOLFGANG NIEDERMARK EXECUTIVE COMMITTEE MEMBER, GERMANY’S MAIN INDUSTRY ASSOCATION BDI The justification of this protectionist escalation has no rational basis. It is a threat to our export-oriented businesses and threatens prosperity, stability and jobs in the United States, as well as innovation, investment and global investment. The EU should now coordinate its response and strengthen its alliances, with its major trading partners. "A coordinated response is needed to counter the changing flows of international trade." SCOTT WHITAKER, CEO, ADVAMED "These broad-based tariffs 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. CHRIS VITALE, UAW VETERAN WHO RETIRED FROM STELLANTIS, ATTENDED TRUMP'S TARIFF ANNOUNCEMENT IN PERSON "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 which pairs targeted incentives and investments 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 that we can have the raw materials our manufacturing base, and society needs. We look forward working with the Trump administration to ensure that the domestic mining industry can meet this challenge. Reporting by Juby B. Babu from Mexico City; Vallari Srivastava in San Francisco; Nick Brown, Caroline Humer, and Dhanush Bahu in Bengaluru; Abhirup Roy and Dhanush in Bengaluru. Editing by Sayantani Ghosh and Shounak Dasgupta.
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China stocks, yuan tumble after bigger-than-expected Trump tariffs
China's Yuan fell to its lowest level for seven weeks on Thursday, and the stock markets also suffered after U.S. president Donald Trump announced a set of tariffs that targeted China and its major trading partners. Washington's most recent punitive measures were more aggressive than investors expected. Tariffs of up to 34% will be added on top of Trump's previous 20% tariffs, making the new total levy of 54%. Vietnam, Cambodia, and Laos were the hardest-hit countries in China's supply chains, receiving tariffs of between 46% and 49 %. China's blue chip CSI 300 Index dropped 0.6%, to a new two-month-low. Hong Kong's Hang Seng Index also fell 1.5%. The initial market reaction will likely be a continuation in the risk-off mood, said Lynn Song. Chief economist for Greater China, ING. Song does not expect an intentional devaluation, as it would result in more tariffs that would undermine the currency stability benefits. YUAN SUPPORT Analysts are examining China's intention to defend the Yuan to determine how eager it is to contain contagion on emerging markets as well as negotiate with Trump. The onshore Chinese yuan closed the session in China at 7,3043 per US dollar, its weakest close since the 12th of February. Overnight, the offshore yuan reached a new one-month low. China's state-owned banks bought yuan and the People's Bank of China set the midpoint, or rate around which the yuan can trade, above the market estimates in a move to limit depreciation. The currency has lost most of its gains for the year to date over the last month despite the PBOC's efforts to maintain it through daily benchmark changes. Trump signed an order closing a loophole in trade that allowed low-value packages to be shipped duty-free out of China if they were valued at less than $800, also known as de minimis. The White House said that the order will cover goods from China and Hong Kong and take effect on 2 May. Chinese bond yields fell on Thursday as investors lowered their expectations of a monetary ease. Analysts say that Trump and China are now closer to beginning trade negotiations. However, foreign investors won't be investing in a market where they have invested billions, as they chase a rally sparked by Chinese AI startup DeepSeek. "China's recent technology re-rating has been largely insulated from tariffs," said Eugene Hsiao. Head of China equity strategy, Macquarie Capital. He added that the main concern is the global risk off sentiment, which could limit future inflows. Beijing's plan for economic growth of 5% by 2025, which is targeted at a 5% increase in the next few years, could be affected by the trade war.
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Fuels and carbon dioxide are the main cause of forward curve contracts falling.
European forward curve contracts fell on Thursday, following lower gas and carbon prices. This was after President Donald Trump announced sweeping new tariffs that could cause concern in the manufacturing industry. Analysts at Energi Danmark say that the European carbon market has a bearish outlook, as tariff concerns, uncertainties about possible market reforms, and technical signals are all contributing to a negative trend. Further price drops should be expected. They said that further price drops should be expected on Thursday as part of a general downward trend. "The (power) market is likely to follow the fuels and carbon markets down. The fears over the US tariffs' consequences for the German economy are causing some concern." Trump's decision to impose a tariff of 20% on the majority of goods imported from Europe has intensified the global trade war, which threatens to fuel inflation and stall economic growth. As of 8:39 GMT, the German power contract for 2026 was down 3.5% at 62 euros/MWh. The French baseload contract is now down 3.5% at 85 euro/MWh. Carbon permits in Europe fell by 2.3%, to 66.98 euro per metric ton. On the European spot side, day-ahead contract splits were made as German wind power was expected to drop by half. The French wind supply would also be reduced by about the same amount. The German baseload electricity price for the day ahead rose by 13.1%, to 87 Euros/MWh. Meanwhile, French baseload energy on Friday fell 10% and was 38.25 Euros/MWh. Data compiled by LSEG shows that the German wind output will drop by 6 gigawatts to 5.9 GW this Friday. In France, it is predicted to fall by 1.6 GW and reach 6.3 GW. According to LSEG, the power usage in Germany will drop by 1.2 GW and reach 54.5 GW. In France, it is expected to fall by 1.1 GW and reach 47 GW. Two reactors were taken offline for maintenance, resulting in a five-point drop in French nuclear availability. ($1 = 0.9098 euro) (Reporting and additional reporting by Vera Eckert, Editing by RashmiAich)
What will take place when the Ukraine gas transit deal expires?
Ukraine will not extend a. fiveyear deal with Russia's Gazprom on the transit of. Russian gas to Europe when it ends at the end of the year,. prompting recipient nations to seek options.
Because the Ukraine war, Norway has surpassed Russia to end up being. Europe's leading pipeline gas supplier and the EU has actually increased. melted gas (LNG) imports from the U.S. and other. countries.
WHAT IS THE UKRAINE GAS TRANSIT ROUTE?
The Ukraine gas transit path, concurred upon by Moscow and. Kyiv in 2019, allows Russia to export gas to Europe to Ukraine. However, transit volumes dropped 28.5% in 2023, according to. Ukraine's gas pipeline operator.
2 entry points exist: Sokhranivka and Sudzha, however Ukraine. stated force majeure and stopped circulations through Sokhranivka in. 2022. The system connects Poland, Slovakia, Hungary, Romania,. and Moldova.
WHICH NATIONS RECEIVE GAS VIA THE ROUTE?
Most EU countries have lessened their reliance on Russian. gas due to the Ukraine intrusion. Former main recipients of gas. via Ukraine consist of Austria, Slovakia, Italy, Hungary, Croatia,. Slovenia, and Moldova. Austria still gets most of its gas. via Ukraine, while others have diversified their sources and. taken steps to decrease demand.
Moldova, one of Europe's poorest countries, last year. sourced all its gas from European markets, leaving offered gas. from Gazprom for its breakaway eastern area, Transdniestria.
Croatia's imports are now very little and Slovenia's have. dropped to near absolutely no after its main gas supplier Geoplin's. agreement with Gazprom ended last year, a study by the Center on. Global Energy Policy at Columbia University stated.
HOW CAN GAS THROUGH UKRAINE BE REPLACED?
Alternative supply sources exist, EU energy commissioner. Kadri Simson stated an analysis has actually revealed.
Austria can import from Italy and Germany, and its energies. have stated they have actually taken precautionary measures if Russian gas. supply stops.
Hungary has been relying on the TurkStream pipeline, and. Slovenia gets its gas from Algeria and other sources.
Slovak gas supplier SPP stated a consortium of European gas. purchasers could take control of the gas on the Russia-Ukraine border when. the transit contract ends.
Another option is for Gazprom to supply some of the gas via. another route, for instance via TurkStream, Bulgaria, Serbia or. Hungary. Nevertheless, capability by means of these paths is limited, SPP informed. .
Italy gets the majority of its gas through a path which. helps with Azeri Gas imports and from Algeria.
WHAT HAPPENS TO UKRAINE'S GAS TRANSIT NETWORK?
Ukraine has not imported gas straight from Russia considering that 2015. but uses the transit system to supply homes and companies. The. system preserves pressure levels for both European and domestic. supply.
Ukraine has experience in handling transit shutdowns - such. as those in 2006 and 2009 - and has actually tested the system to make sure. it can function if supply from Russia ceases.
Ukrainian energy officials and market sources have. repeatedly said there is no threat to Ukraine by stopping. transit, saying Ukrainian compressors could pump gas from. storage centers in the west to the east.
JUST HOW MUCH EARNINGS WILL GAZPROM LOSE?
Russia could lose around $4.5 billion annually if exports. halt, based upon an expected typical gas price to Europe of $320. per 1,000 cubic metres in 2025. Its daily exports through Ukraine to. Europe presently stand at more than 40 million cubic metres,. according to Gazprom's information.
WHAT CAN GAZPROM DO WITH THE GAS?
If Ukraine does not extend the offer, Russia prepares to utilize. alternative paths and increase LNG exports. Gazprom aims to. increase gas sales to China.
Gazprom started gas flows to China by means of the Power of Siberia. pipeline in late 2019, aiming to export 38 billion cubic metres. ( bcm) from next year, and eventually to as much as 100 bcm per. year, including 50 bcm through the proposed Power of Siberia 2. pipeline, but negotiations on price and other issues have. stalled.
(source: Reuters)