Latest news with #importtariffs
LBCI
7 days ago
- Business
- LBCI
Trump admin appeals US court ruling blocking tariffs
The Trump administration on Wednesday filed an appeal to a U.S. federal court ruling that sought to block most of the U.S. president's sweeping import tariffs from going into effect. "Notice is hereby given that defendants appeal to the United States Court of Appeals for the Federal Circuit from the Court's opinion and final judgment of May 28, 2025," the court filing said. AFP
CNA
29-05-2025
- Business
- CNA
Dollar rises after Trump's tariffs face court roadblock
LONDON :The dollar rose against its major peers on Thursday after a court blocked U.S. President Donald Trump from imposing import tariffs on other countries, providing some relief for the currency that has struggled this year due to trade uncertainty. The greenback gained a third of a percent against the yen and the Swiss franc but was off session highs after the trade court ruling that found Trump overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners. The Trump administration filed an appeal within minutes. "Reciprocal tariffs are off for now, but this should not alter the medium trend. Trump may find other methods to impose his economic and trade agenda, so in that respect it's uncertainty squared," said Kenneth Broux, head of corporate research FX and rates at Societe Generale. "For some investors this is just an opportunity to diversify to non-dollar securities." U.S. assets including the dollar have been hurt in recent months as investors reassess historic assumptions around the strength of U.S. markets given an erratic trade policy and concern about high debt. The dollar briefly hit a two-week high at 146.29 yen and was last trading 0.34 per cent higher on the day at 145.23 yen. It was also 0.34 per cent higher against the Swiss franc at 0.8296. The euro slipped 0.13 per cent to around $1.1276 and sterling was slightly weaker at around $1.3467. That left the dollar index, which measures the U.S. currency against six major peers, back above 100 for the first time in a week. "There's an initial reaction of a stronger dollar and weaker yen. However, considering judicial processes like appeals, I don't expect a continuous rise in the dollar," said Hirofumi Suzuki, chief FX strategist at SMBC. The dollar index remains down 8 per cent so far this year and analysts said that the new court ruling did little to offer clarity on the outlook for tariffs and they were sceptical of a sustained dollar rally in the face of a long court battle. The greenback has weakened about 2 per cent against the yen, nearly 6 per cent against the Swiss franc and 4 per cent against the euro since Trump slapped harsh levies on global economies on April 2, while the broader dollar index has fallen more than 3 per cent. U.S. Treasuries also sold off, with 10-year yields up 5 basis points at 4.53 per cent. Europe's benchmark STOXX 600 index was up 0.3 per cent in early trading, and U.S. stock futures jumped on a risk-on rally. Global investor sentiment was also lifted this week after Trump delayed at the weekend his plan to impose 50 per cent tariffs on European Union imports, and investors are on the lookout for any signs of improving relations between the United States and its trade partners.
Russia Today
28-05-2025
- Business
- Russia Today
India offers ‘deep cuts' on tariffs as talks with US proceed
India has proposed deep cuts in import tariffs on various goods, in an effort to reach a preliminary trade agreement with the US, the Financial Times reported on Wednesday. However, the country reportedly aims to maintain high tariffs on sensitive agricultural products, such as grains and dairy items. India is seeking to secure a deal before July 9, when the US has threatened to impose a 26% reciprocal tariff on all Indian goods. Sources familiar with the negotiations told the FT that India has shown willingness to cut tariffs on less sensitive farm products such as almonds, which currently face tariffs of up to 120%. It could also consider reducing tariffs on imported oil and gas, which range from 2.5 to 3%, the report said. The FT's sources declined to provide details on the range of US goods which New Delhi offered to 'substantially' cut tariffs on, as the negotiations were at an 'early stage.' Indian trade officials have hinted, however, that any concessions would be similar to those offered in recent trade agreements, such as the one they have with the UK, in which India agreed to reduce tariffs on items such as alcoholic spirits, cars – including electric vehicles – car parts, and engineering goods. On Tuesday, India said that a successful trade agreement with the US could 'flip current headwinds into tailwinds,' according to a report by the Finance Ministry's Monthly Economic Review. This can 'open up new market access and energize exports,' the report added. The US introduced an additional tariff on Indian products, effective April 2, but it was suspended for a 90-day period, and is set to expire on July 9. Meanwhile, the standard 10% US tariff on Indian goods remains in places. US President Donald Trump has called India the 'tariff king.' In February, New Delhi announced a reduction in customs duties on items including luxury cars and solar cells, according to reports, in a move seen as aimed at addressing US trade concerns. India's federal budget for 2025 proposed reducing the peak import tariff from 150% to 70% and average tariffs from 13% to below 11%. India is also willing to buy US defense equipment and liquefied natural gas, government officials said. However, despite this, the US has advised companies such as Apple to avoid expanding manufacturing in India.
Globe and Mail
28-05-2025
- Business
- Globe and Mail
Nvidia's Big Moment Is Just Ahead. Here's What to Watch For.
All eyes are on Nvidia (NASDAQ: NVDA) today as it prepares to report earnings. Why is the report such a big deal? For a couple of reasons. Nvidia dominates an area that drove stock market gains over the past two years, and investors are looking for clear signals of what's ahead. I'm talking about artificial intelligence (AI), a technology that some say could become the next internet or telephone from an innovation perspective. Nvidia is the world's leading maker of AI chips, the tools that power this entire revolution. So any words from Nvidia may set the tone not only for this AI giant but for other companies that operate within the space. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Also, this latest earnings report may be crucial as it's set against a backdrop of recent challenges, from President Trump's import tariff plan to the government's restrictions on chip exports to China. These elements weighed on Nvidia's stock, and it dropped as much as 29% from the start of the year through early April. Since then, the shares have rebounded amid signs that import tariffs won't be as severe as initially planned, leaving Nvidia stock down about 2% for the year as of May 23. Now, let's consider what to watch for during this upcoming big moment for Nvidia and for investors. Nvidia's gross margin First, it's important to note that Nvidia has established a track record of beating analysts' earnings estimates, so investors are eager to see if this continues, particularly as the company still is in the launch phase of its Blackwell architecture. New product rollouts are costly times, so investors want to know whether Nvidia has been able to keep gross margin in the low 70% range, in line with its earlier forecasts. This would show high profitability on sales continues. Nvidia customers, from Meta Platforms to Alphabet, have offered us bright news in their recent earnings reports, saying they're sticking with their capital spending plans for the year. Meta even increased its spending forecast. Now, when Nvidia reports, it's key to listen for any related comments regarding demand to confirm that these spending plans will indeed benefit Nvidia. These customers are likely to continue pouring investment into Nvidia products and services, but competitors exist, and Nvidia customers even may be considered competitors themselves as some have created their own AI chips. Another point to watch for is any commentary on exports to China. Nvidia earlier said it would be taking a $5.5 billion charge in the quarter related to the H20 chip it designed for the Chinese market. The U.S. recently halted sales of that product, saying Nvidia needed an export license. Reports of Nvidia's efforts in China Meanwhile, press reports have suggested Nvidia is considering other ways of maintaining its presence in the China market, one that represented 13% of sales in the latest fiscal year. For example, Nvidia plans on launching new chips for China and may start mass production as early as next month, Reuters reported, citing sources familiar with the project. Finally, Nvidia, which weeks ago announced a new investment in manufacturing in the U.S., may offer more details regarding that effort. Trump's tariffs don't yet apply to electronics, but the president has said he plans to set duties specifically for these types of products. Nvidia generally has relied on production in Taiwan but now aims to bring more and more of this back home. It will be important to see how these moves affect Nvidia's cost structure, and whether any impact will be felt in the near term or farther down the road. Nvidia has said two U.S. facilities should start to ramp up within a year to 15 months. Nvidia has proved itself to be a bellwether for the tech industry, so the company's earnings report could offer not only its stock but the shares of other tech players direction this week. Though this earnings report is a big moment, investors should remember that it still offers a short-term picture of both Nvidia and the general AI market environment. And that means whether Nvidia surprises to the upside or not, you may win by holding this top AI player and other quality tech stocks over the long term. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.
Globe and Mail
24-05-2025
- Business
- Globe and Mail
U.S. Pharmaceutical Imports Might Soon Face Tariffs: 3 Stocks That Could Tumble as a Result
The tariff war the U.S. is waging against most of the world stabilized somewhat earlier this month. But let's face facts -- it could easily flare up again. President Donald Trump appears quite committed to the idea of leveraging America's economic dominance, and no industry is immune to this dynamic. One could argue, however, that the pharmaceutical industry is especially vulnerable. Although the 25% import tariff rate the White House has threatened on foreign-made drugs and drug components is neither sky-high nor a guaranteed figure (and may only be a means of forcing negotiations), this administration has voiced clear concerns about any American dependence on overseas suppliers of medicines. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Higher import tariffs could, in theory, encourage domestic drug companies to move more of their production here. The problem is that the construction of more U.S. drug-manufacturing facilities could prove incredibly expensive, not to mention time-consuming. With little wiggle room between their costs and the prices of their drugs, this leaves pharmaceutical makers vulnerable -- as well as their stocks. But which pharma stocks are most vulnerable? Here's a closer look at three companies that face more than their fair share of potential tariff headaches. 1. Amgen Higher import costs work against all drugmakers. But they're especially challenging for companies like Amgen (NASDAQ: AMGN), due to its significant exposure to the generics segment of the drug business. Generic drugs can be manufactured by any company willing to replicate a medicinal molecule that's no longer patent-protected, and that often ultimately leads to a profit-pinching price war. Therefore, as a means of keeping generic drug-production costs as low as possible, pharma companies often establish manufacturing sites overseas. Amgen is no exception to this dynamic. Although 2017's Tax Cuts and Jobs Act spurred the company to build a handful of new manufacturing sites within the U.S., it's still heavily reliant on its production facilities in Singapore and Ireland to make many of its drugs, including generics. Its deep dependence on Ireland, however, could become a serious liability. Contrary to a common assumption, the United States' biggest drug import/export disparity isn't between it and China (China is actually a net buyer of U.S. pharmaceuticals). Rather, it's with Ireland. As the Motley Fool's own in-house research arm points out, despite the country's relatively tiny size, in 2024 alone Ireland exported $45.5 billion more worth of drugs to the U.S. than it imported from the U.S. Don't misread this data, however -- it's a purely technical matter. There's simply a significant tax benefit for domiciling certain pharma operations in Ireland, so much so that several other drugmakers have done the same. Now this tax-reducing strategy appears to be a specific target of President Trump's, in that he's called out the country by name in several public comments about his drug-tariff plans. The path Amgen will need to navigate isn't yet clear. But it is clear that shareholders can expect to see rising costs chip away at what are already rather thin profit margins for the drug industry. 2. Pfizer Speaking of Ireland, pharmaceutical giant Pfizer (NYSE: PFE) is also highly vulnerable for the same basic reason as Amgen. That is, several of its top-selling drugs including the pneumonia vaccine Prevnar, the meningitis vaccine Penbraya, and some of the COVID-19 vaccine Comirnaty are made in Ireland. This could soon prove to be an expensive arrangement. Trump's impending tariffs aren't just targeting Ireland, though. Plenty of drugs delivered to the United States are manufactured in other parts of Europe, which has also prompted tariff-raising moves from the U.S. president. Some of Comirnaty's components are also manufactured in Germany, for instance, while the blood thinner Eliquis is made in the Netherlands by Bristol Myers Squibb as part of a partnership with Pfizer that's been in place since 2007. For perspective, the four drugs mentioned above account for about 10% of Pfizer's total top line. That's not even considering the potential added cost of drug ingredients needed to manufacture pharmaceuticals inside the U.S. Pfizer is capable of making at least some of these drugs elsewhere, to be clear. Indeed, with almost a hint of acceptance, Pfizer's CEO Albert Bourla explained last month: "We have all the capabilities here and the manufacturing sites are operating in good capacity right now." He added that the company doesn't "have to build the network" if import tariffs end up being locked in at untenable levels. Nevertheless, not all of Pfizer's foreign-made pharmaceuticals can simply shift their production here. For some of them, the company would need to build new facilities, at a cost in the billions of dollars. Given that it recently shelled out $43 billion to acquire Seagen -- to own a promising but not yet completely proven oncology drug portfolio, as its large COVID business continues to deteriorate -- that's not another prospective expenditure the market's likely to cheer. 3. AbbVie Last but not least, add AbbVie (NYSE: ABBV) to the list of pharmaceutical stocks that could get hit particularly hard should the worst of drug-tariff fears be realized. This company is mostly shrugging off the potential effects of Trump's suggested tariffs on imported pharmaceuticals. As CEO Rob Michael commented during the first-quarter earnings conference call, before raising the organization's fiscal full-year revenue and earnings outlook, "any related impact from these tariffs, as well as other potential new or reciprocal tariffs, [has] not been contemplated in our guidance." But he optimistically went on to say: "To the extent there is an impact, we believe it would be in line with our peers, given that AbbVie has an extensive manufacturing presence in the United States." Other less biased observers aren't so sure, though. Analysts with Bernstein, for instance, put AbbVie in their "highest risk category" of pharmaceutical companies that could feel the impact of newly imposed tariffs, suggesting they could cost the drugmaker hundreds of millions of dollars per year. These analysts are likely keying in on imports of some of the company's bestsellers into the U.S., where it does the bulk of its business. Some of these top-selling drugs include the arthritis drug Rinvoq (made in Ireland, Canada, and Germany), and the immunosuppressant Humira (manufactured in Germany as well as Puerto Rico). Although U.S. residents don't necessarily use the foreign-made versions of either drug, these foreign-made drugs still become part of AbbVie's worldwide supply. And while the company may not be concerned enough about looming tariffs to include their potential impact in its 2025 guidance, it's curious that AbbVie is still earmarking $10 billion to expand its domestic manufacturing capabilities over the next 10 years. That's hardly chump change for a pharmaceutical outfit that's been fighting not one but two ongoing patent wars for two of its top-selling drugs -- the aforementioned Humira and Rinvoq. In the meantime, AbbVie's best-selling Skyrizi (for the treatment of psoriasis, arthritis, and certain intestinal conditions) may be selling well, but it's being assisted by a very expensive ad campaign. In fact, the company's now spending more to promote the drug on American TV than is being spent to advertise any other drug made by any manufacturer. Connect the dots: AbbVie isn't exactly entering potential tariff turbulence from a position of tremendous strength. There's even chatter about the company being unable to maintain its dividend. Should you invest $1,000 in Pfizer right now? Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pfizer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $640,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $814,127!* Now, it's worth noting Stock Advisor 's total average return is963% — a market-crushing outperformance compared to168%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
