Latest news with #MarceloEbrard
Al Bawaba
5 days ago
- Business
- Al Bawaba
US 50% tariffs on metals take effect
June 4 (UPI) -- The United States' 50% tariffs on metals imported from nearly all nations took effect on Wednesday. President Donald Trump signed an executive order on Tuesday, doubling the tariffs on all aluminum and steel imported into the United States from 25% to 50% with only Britain receiving a reprieve as part of a trade deal between the two nations in May. "In my judgement, the increased tariffs will more effectively counter foreign countries that continue to offload low-priced excess steel and aluminum in the United States Market and thereby undercut the competitiveness of the United States steel and aluminum industries," Trump said in the order. Roughly 25% of all steel used in the United States is imported from abroad, with neighbors Mexico and Canada serving as the largest exporters of steel into the country. Mexican Economy Minister Marcelo Ebrard said Mexico would seek an exemption from the tariff increase while criticizing the move by the United States. "It makes no sense for the United States to levy a tariff on a product in which you have a surplus," he said. Canadian Prime Minister Mark Carney's office also said Canada was "engaged in intensive and live negotiations to have these and other tariffs removed. European Union Trade Commissioner Maros Sefcovic met with U.S. Trade Representative Jamieson Greer on Wednesday in an effort to work out an exemption on the 50% duty. Sefcovic posted to X Wednesday that the two had "a productive and constructive discussion." "We're advancing in the right direction at pace -- and staying in clsoe contact to maintain the momentum," he said. Britain was spared from the tariffs after signing the U.S.-U.K. Economic Prosperity Deal on May 8 that granted the United States the ability to fast-track exports including agricultural products, through British customs and market access for industrial products. Tuesday's executive order stipulated, however, that Britain could be subject to the 50% tariffs as soon as July 9 if it is determined that it has not "complied with relevant aspects of the deal." Gareth Stace, director general of U.K. Steel, said Tuesday that while the trade association for the British steel industry welcomes the 25% tariff break, "uncertainty remains over timings and final tariff rates, and now [United States] customers will be dubious over whether they should even risk making U.K. orders." "The [United States] and U.K. must urgently turn the May deal into reality to remove the tariffs completely," he said.
CNA
5 days ago
- Business
- CNA
Mexico threatens retaliation as US doubles metal tariffs, EU and others race to avoid further levies
WASHINGTON: Mexico has threatened to impose retaliatory tariffs after the United States doubled its import duties on steel and aluminium, deepening a global trade dispute that has disrupted markets and strained diplomatic ties. US President Donald Trump's decision to increase the levies to 50 per cent took effect at midnight on Wednesday (Jun 4), applying to all countries except the United Kingdom, which secured a temporary exemption via a preliminary trade agreement. Mexico's Economic Minister Marcelo Ebrard said the hike was 'unsustainable and unfair,' and confirmed that countermeasures were being prepared. 'We cannot accept this in silence. Our response will be firm but calibrated,' he said at a press conference in Mexico City. The Mexican Chamber of Commerce also urged immediate government action, while industry leaders warned of rising production costs and job losses in the country's manufacturing sector. EU, US cite progress in tariff talks Meanwhile, the United States and European Union reported progress during high-level trade discussions in Paris on the same day the new tariffs were enacted. EU trade negotiator Maros Sefcovic and US Trade Representative Jamieson Greer said the meeting was constructive, with technical-level talks continuing in Washington and further negotiations planned. 'What makes me optimistic is I see the progress, the discussions are now very concrete,' said Sefcovic. Greer echoed the sentiment, noting a 'willingness by the EU to work with us to find a concrete way forward to achieve reciprocal trade.' Markets react to metals hike Markets responded with volatility to the hike in tariffs, which doubled the previous 25 per cent duty rate introduced in March. Canada and Mexico, the US's largest trading partners for steel, are among those hit hardest. The new tariffs also jolt the aluminium sector, with Canada being the top exporter of the metal to the US. Prime Minister Mark Carney said Canada was engaged in 'intensive' talks to reverse the levies, which Ottawa considers illegal. Labour union Unifor called for reciprocal tariffs on US metal imports. The American Automotive Policy Council warned the measures would increase vehicle production costs and harm US competitiveness. Meanwhile, the Congressional Budget Office forecast a negative impact on US economic output. Broader fallout and 'best offer' deadline Wednesday also marked the deadline set by the White House for countries to submit proposals aimed at averting additional reciprocal tariffs expected to take effect on July 8. Only the UK has reached a provisional agreement so far, with talks continuing with other trading partners. The US has asked for concessions on both tariff rates and non-tariff barriers in exchange for exemptions. Minerals and manufacturing in flux Separately, supply chain concerns are growing over China's restrictions on rare earth exports. European automakers have reported production disruptions, while German carmaker BMW noted delays in its parts supply due to shortages of essential minerals. Global uncertainty over tariffs has already affected firms across sectors, with French spirits group Remy Cointreau slashing its long-term sales goals and German manufacturers citing reduced orders.
Al Jazeera
6 days ago
- Business
- Al Jazeera
Donald Trump's 50% steel and aluminium tariffs take effect
In a move that has reignited trade tensions with key allies, United States President Donald Trump has doubled tariffs on steel and aluminium imports. The new rates, which came into effect early on Wednesday, raise duties from 25 percent to 50 percent. Trump says the measure is designed to bolster the struggling US metals sector. 'We started at 25 and then, after studying the data more, realised that it was a big help, but more help is needed. And so that is why the 50 [percent tariff] is starting tomorrow,' said White House economic adviser Kevin Hassett during a steel industry event in Washington on Tuesday. The executive order applies to all trading partners except the United Kingdom, which has reached a provisional trade deal with Washington during a 90-day pause on broader tariffs. British exports will continue to face a 25 percent rate until at least July 9. The hike is expected to weigh heavily on Canada and Mexico, two of the US's closest economic allies and among the largest suppliers of steel. Census Bureau data shows Canada alone exports more aluminium to the US than the rest of the top 10 countries combined. Almost half of the US aluminium consumption is imported. Canada's Prime Minister Mark Carney's office confirmed that 'intensive and live negotiations' were ongoing to remove the tariffs. Mexico's Economy Minister Marcelo Ebrard slammed the decision as irrational, noting the imbalance in steel trade between the two nations. 'It makes no sense for the United States to levy a tariff on a product in which you have a surplus,' he said, adding that Mexico would seek an exemption. The European Union criticised the decision, saying it 'strongly regrets' the move and warned it could take retaliatory action, accusing Washington of undermining attempts at a negotiated settlement. OECD chief economist Alvaro Pereira told the AFP news agency that the tariffs have already dampened global trade, investment and consumption, and that the US will bear the brunt of the fallout. While several of Trump's tariff measures face legal scrutiny, they remain in force during the appeals process.
Bloomberg
6 days ago
- Business
- Bloomberg
Mexico Will Ask US Government for Steel Tariff Exemption
Mexico will ask Donald Trump's administration this week to be exempted from an increase in steel tariffs to 50%, the country's economy minister said on Tuesday. 'It's not fair and it's unsustainable. We will present our arguments on Friday to exclude Mexico from this measure,' Marcelo Ebrard said during an event in Mexico City.
Reuters
30-05-2025
- Business
- Reuters
Mexico hopes early review of USMCA can end uncertainty, revive flagging investment
MEXICO CITY, May 30 (Reuters) - Falling investment, slowing growth, and the changing whims of U.S. President Donald Trump have led Mexico to support an early review of the U.S.-Mexico-Canada (USMCA) trade agreement, a sharp U-turn on its previous plan to hold off for as long as possible. Three Mexican officials told Reuters the shift was due in part to the need to gain some longer-term certainty around the country's trade relationship with its largest export market. But they said it was also key that Trump appeared to want an earlier review, because the U.S. president holds better cards and trying to keep on his good side has been a core Mexican strategy that has shown positive results. Mexico's Economy Minister Marcelo Ebrard said this week he expects the review's 'formal start' to begin as soon as September, despite being scheduled in the agreement for 2026. It is clear that Trump has more leverage, said Juan Carlos Baker, Mexico's former chief negotiator for USMCA. 'If he believes Mexico is not playing ball, you might be risking he will one day show up and announce the U.S. is exiting the agreement altogether,' he said. Mexico is looking for any clarity it can find. The uncertainty over trade rules has already impacted its economy. Foreign direct investment in the first quarter of the year fell 21% compared to the same period last year, according to figures from Mexico's Central Bank. Some of that may be related to business community jitters about Mexico's judicial reform. Still, uncertainty over tariffs has played a significant role. On Wednesday, the central bank cut its GDP forecast for this year to just 0.1%. The International Monetary Fund prediction is even worse at -0.3%. 'Uncertainty kills investment,' said Emilio Romano, president of Mexico's Bankers Association, noting that 40% of Mexico's GDP is U.S.-dependent. Mexico's reliance on the U.S. makes the USMCA negotiations almost existential to the country's economy and a huge priority for Sheinbaum. Over 80% of total Mexican goods exports go to the U.S. and free trade with its northern neighbor drove Mexico to overtake China as the U.S.'s top trading partner and turned it into one of the world's largest auto manufacturers. Mexican officials are worried enough about angering Trump that they have held off signing an updated trade agreement with the European Union for fear it could jeopardize trade talks with the U.S., according to one European official. Mexico had originally wanted to wait as long as possible before opening talks on USMCA, so it could first resolve bilateral issues like the tariffs imposed due to fentanyl trafficking and migration, and so U.S. consumers would begin to feel inflationary pressures from Trump's tariffs. That approach tallies with Canada's, with Prime Minister Mark Carney saying this week he wanted to make progress on bilateral issues with the U.S. before opening talks on USMCA. Amid the uncertainty, Ebrard and his deputy Luis Rosendo Gutierrez have for months been almost constantly shuttling between Mexico and Washington, to meet with U.S. Commerce Secretary Howard Lutnick, a billionaire investor, and Jamieson Greer, a former Air Force officer who is Trump's top trade official. 'It's important to be in Washington just to take care of any issues that can come suddenly to the table. And it's important to be present,' said a Mexican official familiar with the negotiations. 'We are taking care of our place in relative terms with other countries.' But negotiations with the Trump administration can be unreliable. In April, as the screwworm parasitic fly threatened to decimate Mexico's billion-dollar cattle market, officials reached an agreement that the U.S. would not close its border to livestock in exchange for Mexico doing more to fight the pest. Just 11 days later, the U.S. abruptly shut the border anyway, catching frustrated Mexican officials flat-footed. The question mark hovering over USMCA's future has overshadowed victories by Mexico's negotiating team, including convincing the Trump administration to suspend tariffs on USMCA-compliant auto parts. 'We left intensive care. Now we are in intermediate care,' said Francisco Gonzalez, executive director of Mexico's National Auto Parts Association. Until the USMCA review is complete, he said new investment is 'pretty much suspended, basically on standby.'
