2025-04-03 20:47
NEW YORK, April 3 (Reuters) - World cocoa and coffee prices fell on Thursday as investors fretted that President Donald Trump's move to slap punishing tariffs on U.S. imports would damage chocolate and coffee demand in the world's top consumer of the products. Sugar prices also fell, caught in the melee of tariffs as the U.S. is also one of the world's top sugar importers. Sign up here. Trump said he would impose a 10% baseline tariff on all U.S. imports, taking the maximum to nearly 50% for some countries and unleashing turbulence across world markets as investors fret about the end of a decades-long era of trade liberalisation. Top robusta growers Vietnam and Indonesia were targeted with 46% and 32% tariffs, respectively, top arabica and sugar grower Brazil was hit with 10% tariffs for its goods, while top cocoa growers Ivory Coast and Ghana face 21% and 10% tariffs. The first U.S. tariffs on coffee imports since colonial times will increase costs and complexity to importers and roasters already dealing with near-record prices, experts said on Thursday. The U.S. is also a major importer of processed cocoa products like butter and powder from the EU, Malaysia and Indonesia. Trump slapped 20% tariffs on EU imports and 24% on Malaysian goods, while the 32% tariffs on Indonesia of course apply to both robusta coffee and to cocoa products. "We don't know the (full) impact right now (but) there are no winners, this is bad for everyone. For the U.S., its inflationary while others lose access to the U.S., a huge market," said a Europe-based coffee trader. Arabica coffee futures on the ICE exchange, seen as a global price benchmark, settled down 3.6 cents, or 0.9%, at $3.8525 per lb, having earlier fallen nearly 3%, while robusta coffee futures slipped 0.2% at $5,388 a ton, having earlier fallen 2.5%. London cocoa futures fell 1.4% to 6,683 pounds per ton, having earlier fallen nearly 5%, while New York cocoa gained 3.6% to $9,291 a ton, having earlier risen nearly 6%. Dealers said New York cocoa was being boosted by weakness in the dollar as the harsher-than-expected Trump tariffs sent investors scrambling for bonds and gold. A weak dollar makes dollar-priced cocoa cheaper for non-U.S. investors. Sterling for example gained versus the dollar, making sterling-priced London cocoa more expensive for investors outside Britain and prompting them to sell. In other soft commodities traded, raw sugar settled down 0.48 cents, or 2.5%, at 19.11 cents per lb, while white sugar sank 1.6% at $543.80 a ton. https://www.reuters.com/markets/commodities/coffee-cocoa-slide-trump-tariffs-spark-demand-worries-2025-04-03/
2025-04-03 20:40
April 3 (Reuters) - The United States is in talks to invest billions of dollars in mineral-rich Congo and wants to help end a conflict raging in the country's east, President Donald Trump's senior adviser for Africa said during a visit on Thursday. Democratic Republic of Congo, which has vast reserves of cobalt, lithium and uranium among other minerals, has been fighting Rwanda-backed M23 rebels who have seized swathes of its territory this year. Sign up here. The U.S., which on Wednesday sent shockwaves across the world by announcing a 10% baseline tariff on all imports, said last month that it is open to exploring critical minerals partnerships with Congo after a Congolese senator contacted U.S. officials to pitch a minerals-for-security deal. "You have heard about a minerals agreement. We have reviewed the Congo's proposal, and ... the president and I have agreed on a path forward for its development," U.S. senior adviser Massad Boulos said after meeting Congo President Felix Tshisekedi in Kinshasa. The details of any potential deal, or Congo's proposal, were not made public on Thursday. Congo's minerals, which are used in mobile phones and electric cars, are currently dominated by China and its mining companies. How the U.S. will operate in Congo is unclear, but Boulos suggested that U.S. companies will be involved. "Rest assured, American companies are operating transparently and will stimulate local economies. These are multi-billion-dollar investments," he said. Joseph Bangakya, Congolese parliamentarian and president of a Congo-U.S. friendship parliamentary group, told Reuters that MPs were preparing a bill to promote the Central African country's business climate. "It is essential for our country to achieve a trade agreement with the United States," he said. Boulos added that the U.S. wants to help forge peace in the east where thousands have been killed and hundreds of thousands forced to flee amid M23's advance, which has seen the group take over eastern Congo's two largest cities. "We want a lasting peace that affirms the territorial integrity and sovereignty of the DRC," he said. "There can be no economic prosperity without security." (This story has been refiled to attribute the quote to Massad Boulos in paragraph 11) https://www.reuters.com/world/africa/after-tariffs-us-dangles-billions-dollars-congo-mineral-investment-2025-04-03/
2025-04-03 20:39
April 3 (Reuters) - The Federal Energy Regulatory Commission has granted approval to U.S. LNG developer Venture Global Inc (VG.N) , opens new tab to commence service on the remainder of the facilities at the Calcasieu Pass LNG Terminal in Louisiana, according to a filing on Thursday. Last week, U.S. LNG developer Venture Global had asked federal regulators for permission to begin operations at its entire Calcasieu Pass LNG export facility and TransCameron pipeline project, the final step before moving to commercial operations. Sign up here. "Venture Global has demonstrated that the above-mentioned facilities have been constructed in accordance with Commission approval and applicable standards and can be expected to operate safely and reliably as designed," as per the FERC filing. Three years after it shipped its first LNG cargo, Venture Global LNG will begin commercial operations at its Calcasieu Pass plant in Louisiana on April 15, the company had said earlier this year. Since 2023, Venture Global has significantly boosted U.S. LNG exports, contributing to the nation's status as the world's largest exporter of the superchilled gas. https://www.reuters.com/business/energy/venture-globals-calcasieu-pass-lng-facility-gets-ferc-approval-2025-04-03/
2025-04-03 20:28
TSX ends down 3.8% at 24,335.77 Posts its biggest decline since June 2020 Tech tumbles 9.5%, with Shopify down nearly 20% Energy falls 7.1% as oil settles 6.6% lower April 3 (Reuters) - Canada's main index tumbled to a three-week low on Thursday, including steep declines for energy and technology shares, as the escalation of a U.S.-led trade war sparked fears of a recession globally. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended down 971.41 points, or 3.8%, at 24,335.77, its lowest closing level since March 13. Sign up here. It was the biggest decline for the index since June 2020, shortly after the start of the COVID-19 crisis. Businesses around the globe faced up to a future of higher prices, trade turmoil and reduced access to the world's largest market after U.S. President Donald Trump confirmed their worst fears by instituting broad tariffs worldwide. "It certainly sets the stage for recession and perhaps unfortunately a fairly steep recession," said Michael Sprung, president at Sprung Investment Management. "Today we might be seeing a bit of the first day's shock," Sprung said. "I'm not sure that we're going to see too much of a bounce-back any time soon until we get more clarity on just what some of the countermeasures that other countries might do." Canadian Prime Minister Mark Carney announced a limited set of counter measures against U.S. tariffs while calling Trump's protectionist moves a tragedy for global trade. The technology sector tumbled 9.5%, with e-commerce company Shopify Inc (SHOP.TO) , opens new tab down nearly 20%. Energy was down 7.1% as the price of oil settled 6.6% lower at $66.95 a barrel. OPEC+ agreed to a surprise increase in output which compounded already heavy losses following the tariff announcement. The price of gold also fell and copper posted steep declines. The materials group, which includes metal mining shares, was down 2.7%. Heavily weighted financials lost 3.1% and industrials ended 3% lower. Consumer staples was the only one of ten major sectors to notch gains, rising 0.9%, as supermarket chain Loblaw Companies Ltd (L.TO) , opens new tab moved to a fresh record high. https://www.reuters.com/markets/tsx-futures-fall-trumps-tariffs-stir-recession-fears-2025-04-03/
2025-04-03 20:27
April 3 (Reuters) - Contemplating smoking your way out of the tariff gloom? Think again. Sweeping tariffs imposed by U.S. President Donald Trump on Wednesday are set to increase prices of cannabis products in the country, as many firms rely on Asia for manufacturing. The latest levies will stack up on any duties imposed earlier on countries like China, Canada, Mexico and the EU. Sign up here. Items such as tins, vape hardware and specialized glass remain difficult to source domestically, and companies remain largely dependent on Asia particularly China, analysts and executives said. "Those relying on exports from nations with tariffs, such as China, will need to take a serious look at how they might absorb the extra costs or alter partnerships," said Bryan Gerber, CEO of Hara Supply, the world's largest manufacturer of cones and combustibles. Shares of cannabis firms such as Tilray Brands (TLRY.O) , opens new tab, Canopy Growth (WEED.TO) , opens new tab, Organigram (OGI.TO) , opens new tab and Terrascend (TSND.TO) , opens new tab were trading down between 5% and 10% on Thursday. Most of these tariff costs will be passed to consumers. The higher costs will likely drive more consumers to the illicit market, further denting margins for legal cannabis firms. "Most cannabis businesses don't have the margin flexibility to absorb a 10%-15% increase," said Mike Forenza, managing partner at AE Global, which makes packaging products for cannabis firms. Higher costs have already hit demand. "Manufacturers are passing these tariff cost down the line and it will ultimately impact our customers. We are starting to see a softening in the market and inbound order rates starting to slow," said Brad Wasserstrom, president of Wasserstrom Co, a supply chain firm working with cannabis companies. The ongoing North America trade spat could exacerbate problems. Things used to grow cannabis crop including compost and peat are imported from Canada and tariffs will make them costlier. "We work with a manufacturer who imports their glass from China, the wood is imported from Canada, and it's put together in Mexico all before it's distributed in U.S. How is that getting taxed?" said Wasserstrom. "That's a challenge for everyone and ultimately it will come down to the consumer level." https://www.reuters.com/business/retail-consumer/high-just-got-higher-trump-tariffs-raise-prices-us-cannabis-users-2025-04-03/
2025-04-03 20:20
PARIS, April 3 (Reuters) - Despite previous reservations, France held a meeting with 10 EU countries to discuss a possible trade deal with Latin America's Mercosur bloc, a day after the United States unleashed a global trade war, signalling it may be a way for the bloc to offset the impact of U.S. tariffs on European exports. The meeting brought together France and other countries that had led opposition to the deal, which was 20 years in the making and deeply divisive in Europe where farmers fear unfair competition on agricultural products such as beef and grains from countries with less stringent environmental rules. Sign up here. The office of Minister Delegate for Europe Benjamin Haddad said he had organised a video conference with other EU countries in which he defended the idea of including an automatic escape clause on agricultural products in the deal. "In the current geopolitical context, all participants agree on how important it is to diversify trade partnerships," a spokesperson from Haddad's office told Reuters. "However, they can't accept an unbalanced deal which does not protect their farmers," the official added. The clause, a sort of emergency break to restrict imports, would be triggered in case of a sudden surge in imports that would destabilise certain EU markets. "The deal already includes a general clause but it is too difficult to trigger and would be of no use in case of a crisis," the official said. The meeting is a sign that EU countries which had opposed the deal brokered by the European Commission last year are trying to find a constructive compromise with the EU executive, at a time new markets in Latin America could provide a welcome alternative to the U.S. for European exporters. France had received support from the Netherlands, Austria, Ireland, Poland and Hungary among others in its opposition to the deal with the group of South American nations that include farming powerhouses Brazil, Argentina and Uruguay. https://www.reuters.com/world/europe/amid-us-tariff-chaos-france-convenes-mercosur-meeting-with-eu-partners-2025-04-03/
