2025-03-04 16:31

LONDON, March 4 (Reuters) - Britain's finance minister said on Tuesday she was hopeful of securing a trade deal with the U.S. to avoid possible trade tariffs, but warned Britain was still likely to be hurt by duties imposed on other countries. Countries worldwide are scrambling to shield themselves from potential tariffs during U.S. President Donald Trump's second term in office. His administration's new tariffs on imports from Mexico and Canada, along with a doubling of duties on Chinese goods, took effect earlier on Tuesday. "I think there's every reason to be hopeful about coming to some sort of a trade deal," British finance minister Rachel Reeves said at a conference hosted by the Make UK manufacturing industry body in London. "I'm not naive. This is not going to be an easy thing to secure for reasons that we all understand. There will have to be give and take on both sides. We absolutely recognise that, but I do think there's a big opportunity here." Asked about the latest tariffs imposed on China, Canada and Mexico, Reeves said Britain was likely to be hit indirectly. "It's absolutely the case that even if tariffs aren't applied to the UK, we will be affected by slowing global trade, by a slower GDP growth and by higher inflation than otherwise would be the case," she said. Following a meeting with British Prime Minister Keir Starmer in Washington last week, Trump told a joint news conference that the two countries were negotiating a bilateral trade deal that could help avert U.S. tariffs. Starmer said a new economic deal, which would have advanced technology at its core, would strengthen the already strong U.S.-British trading relationship. On Tuesday, Reeves also acknowledged that British businesses trading with the European Union had been hit with "red tape and bureaucracy" since the Brexit deal agreed by the previous Conservative government in December 2020. Trade negotiations "shouldn't be about choosing between the U.S. and our nearest neighbours and trading partners in Europe", she said. "I ... believe that that is in our mutual interests, our interest and in the interests of our European partners, if we can get freer trade once again." Sign up here. https://www.reuters.com/world/uk/uk-finance-minister-says-securing-us-trade-deal-will-not-be-easy-2025-03-04/

2025-03-04 15:38

WASHINGTON, March 4 (Reuters) - U.S. President Donald Trump claimed on Tuesday that U.S. banks are not allowed to do business in Canada, while their banks operate in the U.S. "Canada doesn’t allow American Banks to do business in Canada, but their banks flood the American Market. Oh, that seems fair to me, doesn’t it?," Trump said in a post on Truth Social. Sixteen U.S. banks are currently operating in Canada, the Canadian Banking Association said in February. "These banks specialize in a range of financial services, including corporate and commercial lending, treasury services, credit card products, investment banking and mortgage financing. They serve not only customers with cross-border business activities, but also Canada’s domestic retail market. U.S. banks now make up half of all foreign bank assets in Canada,” the association said. Sign up here. https://www.reuters.com/business/finance/trump-questions-fairness-canadas-dealings-with-american-banks-2025-03-04/

2025-03-04 12:51

China suspends soybean import licence for three U.S. firms Also suspends imports of U.S. logs China says suspension due to phytosanitary issues Suspension coincides with retaliatory measures against U.S. tariffs BEIJING, March 4 (Reuters) - China suspended on Tuesday the soybean import licenses of three U.S. firms and halted imports of U.S. logs, stepping up retaliatory action after the United States imposed additional tariffs on Chinese goods. Earlier in the day, China also imposed import levies covering $21 billion worth of U.S. agricultural and food products including soybeans, wheat, meat and cotton. The three U.S companies affected by the license suspensions are farmer-owned cooperative CHS Inc, global grains exporter Louis Dreyfus Company Grains Merchandising LLC and export grain terminal operator EGT, China's customs department said in a statement. Customs said it detected ergot and seed coating agent in imported U.S. soybeans while the suspension of U.S. log imports was due to the detection of small worms, aspergillus and other pests. Media representatives for Louis Dreyfus, CHS and Bunge Global, which partially owns EGT, did not immediately respond to requests for comment. Beijing's retaliatory measures were in response to U.S. President Donald Trump's decision to impose an extra 10% duty on China, effective Tuesday, resulting in a cumulative 20% tariff in response to what the White House considers Chinese inaction over drug flows. About half of U.S. soybean exports are shipped to China, totalling nearly $12.8 billion in trade in 2024, according to the U.S. Census Bureau. The suspension of U.S. logs was a direct response to Trump's move on March 1 to order a trade investigation on imported lumber. Trump had earlier told reporters that he was thinking about imposing a 25% tariff rate on lumber and forest products. "The announcement of import restrictions on U.S lumber and soybeans linked with phytosanitary issues follows a long history of similar measures by Beijing," said Even Pay, agriculture analyst at Trivium China. The bulk import volumes and natural origin of soybeans and lumber make them susceptible to issues with plant health and pests, creating a convenient target for trade retaliation, Pay said. China is one of the world's largest importers of wood products and the third largest destination for U.S. forest products. It imported around $850 million worth of logs and other rough wood products from the U.S. in 2024, according to Chinese customs data. PUNISHING FARMERS Additional levies imposed by China earlier on Tuesday comprised a 15% tariff on U.S. chicken, wheat, corn and cotton and an extra levy of 10% on U.S. soybeans, sorghum, pork, beef, aquatic products, fruits and vegetables and dairy imports, effective from March 10. The suspension on the three soybean exporters on top of higher import tariffs will further restrict imports of the oilseed into China. Beijing's concerted efforts in recent years to greatly reduce its dependence on U.S supplies has put it in a stronger position to target U.S farm goods with less impact to its food security and greater harm to U.S farmers compared to a 2018 trade war during Trump's first administration. China has turned to South American producers, boosted agriculture cooperation with allies and raised domestic production through expanded planting and the use of technology. (This story has been corrected to say 'logs,' not 'lumber,' in the headline, paragraphs, 1, 4 and 8) Sign up here. https://www.reuters.com/markets/commodities/china-suspends-soybean-imports-three-us-firms-halts-log-imports-2025-03-04/

2025-03-04 12:41

ROME, March 4 (Reuters) - U.S. tariffs on European Union food products would cause "billion of dollars of damage" for Italy's prized agricultural exports including Parma ham and Prosecco wine, an Italian farmers' lobby said on Tuesday. President Donald Trump has vowed to hit the EU and other countries with tariffs in response to their trade surpluses with the United States. New 25% tariffs on Mexican and Canadian imports and 20% duties on Chinese goods took effect on Tuesday. "Billions of dollars of damage are foreseen for Italian food, hurting not only our country, but also the wallets of Americans who buy our excellence and recognise its quality and uniqueness," said Cristiano Fini, president of farmers' lobby CIA, which represents 650,000 members and 170,000 companies. "Trump's farmers will never be able to produce Grana Padano (cheese), Parma ham, Pecorino Romano (cheese), Prosecco, Brunello and all the Made in Italy products," he added. In 2024 Italy's food exports to the U.S. rose to a value of around 7.8 billion euros ($8.22 billion). Italy reported an overall trade surplus with the United States last year of 39 billion euros. The U.S. is by far the top non-EU destination for Italian products and the second overall behind Germany. Fini urged EU member states to take "diplomatic action and a major countermove to counter the disruptive effect of U.S. duties on all EU products." Last week Italian business lobby Confindustria called Trump's tariff policy an attack on EU industry and its workforce, and called for a tough reaction. Prime Minister Giorgia Meloni, a fellow conservative who has established a good personal relationship with Trump, said his tariff threats run against Italy's national interest, but she has also cautioned against starting an EU-U.S. trade war. ($1 = 0.9489 euros) Sign up here. https://www.reuters.com/markets/commodities/italy-farm-lobby-worried-about-us-tariffs-impact-prosecco-parma-ham-2025-03-04/

2025-03-04 12:29

Trump hits Canada, Mexico, China with steep tariffs Canada retaliates with 25% tariffs on some U.S. imports US nonfarm payrolls due on Friday March 4 (Reuters) - Gold prices rose on Tuesday, driven by a weaker dollar and heightened safe-haven demand amid escalating trade conflicts following U.S. President Donald Trump's imposition of new tariffs. Spot gold was up 0.6% at $2,911.88 an ounce as of 02:16 a.m. ET (1916 GMT). Bullion has gained nearly 11% so far this year and hit a record high of $2,956.15 on February 24. U.S. gold futures settled 0.7% higher at $2,920.60. "The implementation of tariffs brings a high level of uncertainty to the markets, and safe-haven products like gold and silver continue to do well," said David Meger, director of metals trading at High Ridge Futures. "The dollar has been under pressure against some of the other major currencies, so that has been supportive as well," he added. Trump's new 25% tariffs on imports from Mexico and Canada took effect at 0501 GMT. He also doubled duties on Chinese goods to 20%. China hit back immediately with additional 10%-15% tariffs on certain U.S. imports from March 10 and a series of new export restrictions for designated U.S. entities. Canada retaliated with 25% tariffs on C$30 billion worth of U.S. imports with immediate effect on Tuesday. The U.S. dollar index (.DXY) , opens new tab fell 0.6%, hitting its lowest level since December and making dollar-priced gold less expensive for buyers holding other currencies. Investors' focus turns to the ADP employment report due on Wednesday and the U.S. nonfarm payrolls report on Friday for clues on the Federal Reserve's interest-rate trajectory. Considering potential economic instability and a weakening job market, there may be a possibility of an earlier-than-expected rate cut by the Fed, Meger said. Following three rate cuts last year, the Fed has kept rates steady. Market expectations point to a resumption of cuts in June, with a potential further reduction in September. Spot silver was up 0.6% at $31.88 an ounce, platinum rose 0.9% to $962.30 and palladium rose 0.9% to $946.25. Sign up here. https://www.reuters.com/markets/commodities/gold-eases-investors-exercise-caution-ahead-trump-tariffs-2025-03-04/

2025-03-04 12:26

BRUSSELS, March 4 (Reuters) - European Commission chief Ursula von der Leyen hosted steel sector executives on Tuesday for a debate on how to ensure the industry's future health as it faces high energy costs, decarbonisation and impending U.S. tariffs. The debate, launched eight days before U.S. President Donald Trump is set to impose 25% tariffs on steel and aluminium imports, will look into how to respond to what the bloc sees as unfair trade practices and global overcapacity, notably in China. Among attendees were executives from the world's second largest steelmaker ArcelorMittal (MT.LU) , opens new tab and ThyssenKrupp (TKAG.DE) , opens new tab, leaders of global union federation IndustriALL, and representatives from key steel users in carmaking and construction. One key question will be how to protect EU producers from a potential flood of steel imports diverted from the U.S. into the more open European market. The EU has safeguards in the form of tariff-free quotas per quarter and per country for various categories of steel dating back to 2018, when Trump imposed metal import tariffs in his first term in office. Under World Trade Organization rules, such safeguards can only be in place for a maximum of eight years, meaning they will run out during Trump's second term in mid-2026. The European Commission, which oversees EU trade policy, has said it is looking into extending the safeguards or putting in place an alternative mechanism. It could also tighten the current system. EU steel demand is likely to have fallen in 2024 for a second consecutive year. The bloc's iron and steel imports totalled 39.5 billion euros ($41.5 billion) last year, while its exports of iron and steel to the U.S. were worth 5.4 billion euros, according to EU statistics office Eurostat. The Commission also intends to gauge the industry's view on energy prices, including prospects for low-carbon hydrogen as a fuel, raw materials supply and how best to promote demand for low-carbon steel and secure investments. ($1 = 0.9512 euros) Sign up here. https://www.reuters.com/markets/commodities/eu-debates-support-europes-steel-industry-us-tariffs-loom-2025-03-04/