Category Archives: International trade

HS2 firm says new steel tariffs will ‘exacerbate’ cost pressures for UK construction industry

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Doubling tariffs on imported steel will raise cost of the metal when Iran war is already inflating steel and concrete prices

One of HS2’s biggest contractors has warned the government that raising tariffs on foreign steel imports will “exacerbate” cost pressures for the UK construction industry, amid growing concern over the £100bn railway’s rising budget.

Ministers said last week they would double the tariffs on imported steel and slash the amount that can be bought from overseas, in an attempt to save Britain’s struggling steelmakers.

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‘The stakes are enormous’: how a prolonged Iran war could shock the global economy

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Donald Trump’s ‘little excursion’ is likely to have long-term effects, from oil prices to inflation to growth, say experts

In the days after the US and Israel first bombed Iran, financial markets bet the economic fallout from Donald Trump’s “little excursion” in the Middle East would be short-lived.

“There are risks from higher oil prices longer term. But this is a tail risk,” one US-based fund manger said after the airstrike killing Iran’s supreme leader, Ayatollah Ali Khamenei. “History has shown time and time again that geopolitical flare-ups like this tend to be short-lived. This one should prove to be no exception.’’

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Africa particularly vulnerable as Iran conflict disrupts supply chains, say experts

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Food production in many African countries depends heavily on fertiliser imported from the Gulf through the strait of Hormuz

Countries in Africa, where farmers depend heavily on imported fertiliser and a large share of household income goes on food, are particularly vulnerable to supply chain disruptions caused by the war in the Middle East, experts have said.

The conflict has drastically disrupted trade through the strait of Hormuz, a vital shipping lane not just for oil and gas but also for fertiliser, which is produced in vast quantities in the Gulf.

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Danish royals Frederik and Mary begin six-day Australia tour with visit to rain-soaked red centre

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Royal trip includes stops in Canberra, Melbourne and Hobart and aims to deepen trade ties

Denmark’s King Frederik and Queen Mary have ended the first leg of their Australian visit with a sunrise trek to a famous Uluru watering hole.

The royal couple walked to Muṯitjulu waterhole in Uluṟu-Kata Tjuṯa national park with traditional owners on Sunday morning. The culturally significant site is one of the few permanent water sources around the sandstone monolith and a regular attraction for visiting dignitaries.

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Aramco warns of oil market ‘catastrophe’ unless strait of Hormuz reopens soon

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Saudi Arabian state oil firm calls crisis by far the biggest the region has seen but firm can reroute 70% of exports and tap crude held in storage

Saudi Arabia’s state oil company has warned of “catastrophic consequences” for the world’s oil markets if the US-Israeli war with Iran continues to block shipping in the strait of Hormuz.

The world’s biggest oil exporter expects to be able to supply the market with about 70% of its usual crude output despite the stranglehold on the vital trade artery, but its chief executive warned that there would still be “drastic” consequences for the world economy if the disruption continues.

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Iran war drives oil prices above $100 a barrel for first time since 2022

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Donald Trump insists surge in energy prices is ‘very small price to pay’ as Middle East conflict sparks fresh stock market sell-off

Oil prices surged past $100 per barrel for the first time since 2022 as fallout from the US-Israel war with Iran continued to rattle global markets and leading economies moved to tackle a worsening energy supply crisis.

A weekend of escalating violence in the Middle East intensified concerns around a sustained supply crunch, propelling oil prices to their highest level in four years and triggering a deep stock market sell-off.

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US and Japan unveil $36bn of oil, gas and critical minerals projects in challenge to China

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Donald Trump says deals ‘end our foolish dependence on foreign sources’, while Japanese PM hails enhanced economic security

Japan has drawn up plans for investments in US oil, gas and critical mineral projects worth about $36bn under the first wave of a deal with Donald Trump.

The US president and Sanae Takaichi, Japan’s prime minister, announced a trio of projects including a power plant in Portsmouth, Ohio, billed by the Trump administration as the largest natural gas-fired generating facility in US history.

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Europe’s economy is geared towards a disappearing world, says ECB’s Lagarde

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Central bank chief warns that the bloc’s dependence on third countries for trade and security has left it vulnerable

Europe’s economy is “geared towards a world that is gradually disappearing”, according to a warning from Christine Lagarde that the EU needs reforms to spur growth.

The president of the European Central Bank (ECB) said the EU’s dependence on international trade had left it vulnerable, as major partners had turned away from the trade that made the bloc’s exporters wealthy.

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China suspends seafood imports from Japan as Taiwan row escalates

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Beijing reimposes 2023 ban, citing Japan PM’s comment that military would respond to Chinese attack on island

China has suspended imports of Japanese seafood again, as the fallout over the Japanese prime minister’s comments about Taiwan continues to escalate in one of worst bilateral disputes in years.

The ban was first reported on Wednesday by the Japanese outlets Kyodo News and NHK, and appeared to be confirmed by China’s foreign ministry, which said there was “no market for Japanese seafood in the current climate”.

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Plant importers say border delays in Kent could drive up prices and stop deliveries from EU

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Traders report long waits at Sevington inspection post and claim trees and shrubs are repeatedly being damaged

Importers of plants say long delays and damage to shipments at a Kent border control post risk driving up prices and could lead to transport companies stopping deliveries across the Channel.

Traders have reported long waits in recent weeks at the government’s Sevington facility off the M20 near Ashford, which was built to check goods of plant and animal origin arriving from the EU. One importer said delays were adding £200 of costs to each load.

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Xi-Trump meeting: America has discovered that bullies can be bullied back

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Outcome appears closer to truce than durable peace but outline of broader diplomatic relationship is visible

When Donald Trump launched his trade war against China in April, threatening tariffs as high as 145%, the Chinese government said it would never bow to blackmail and vowed to “fight to the end”.

The question now is whether the consensus reached between Trump and Xi Jinping in Busan, South Korea, on Thursday means that the fight really has come to an end, and if so on whose terms.

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Trump says all Canada trade talks ‘terminated’ over ad criticising tariffs

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US president accuses Canada of ‘egregious behaviour’ after release of ad featuring Ronald Reagan criticising tariffs

Donald Trump has announced an immediate end to “all trade negotiations” with Canada over a television advertisement opposing US tariffs that quoted the former US president Ronald Reagan.

The ad, which was paid for by the government of the Canadian province of Ontario, uses excerpts of a 1987 speech where Reagan says “trade barriers hurt every American worker”.

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China’s economic growth slows amid Trump tariff war and property woes

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GDP rises by 4.8% year on year between July and September, down from second-quarter growth rate of 5.2%

China’s economy grew at its slowest pace in a year in the latest quarter amid a trade war with the US and long-running woes in its property market.

Fragile domestic demand has left China’s economy heavily reliant on manufacturing and trade, at a time of mounting tensions with the Donald Trump administration.

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US may take strategic stakes in rare earths companies to tackle China ‘power grab’

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Treasury secretary Scott Bessent raises possibility of taking more direct stakes in companies to protect national security in wake of Beijing’s curbs on rare earths exports

The Trump administration has criticised China’s increased restrictions on rare earth exports as a threat to global supply chains, and said it would seek to tighten control over strategic sectors by taking more stakes in key companies to counter Beijing.

Treasury secretary Scott Bessent told an event on Wednesday that China’s dramatic new restrictions on rare earth minerals and magnets demonstrated the need for the US to be self-sufficient in critical materials or rely more on trusted allies.

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Shein warns on Trump tariff uncertainty after profits slip

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Fast-fashion retailer records 20% growth in sales and fees to $37bn but big hit is expected from US changes to import tax rules

Shein has reported a 20% rise in global revenues to $37bn (£27.7bn) but profits have fallen as the fast-fashion retailer faced increased costs, even before it felt the impact of recent changes to US tax laws.

The Singaporean parent company of the rapidly growing retailer said pre-tax profits had fallen by 13% to $1.3bn last year from $1.5bn in 2023 after an increase in selling and marketing costs, according to new accounts.

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China warns US of retaliation over Trump’s 100% tariffs threat

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Beijing says it will act if US president doesn’t stand down, while investors brace for trade war turmoil

Beijing has told the US it will retaliate if Donald Trump fails to back down on his threat to impose 100% tariffs on Chinese imports as investors brace for another bout of trade war turmoil.

China’s commerce ministry blamed Washington for raising trade tensions between the two countries after Trump announced on Friday that he would impose the additional tariffs on China’s exports to the US, along with new controls on critical software, by 1 November.

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‘A fatal blow’: Italian producers fear effects of Trump’s ‘war against pasta’

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US president’s threat to impose 92% tariffs targeting major manufacturers put family-run firms in the firing line as well

“It’s a real pity,” laments Antonio Rummo of Donald Trump’s latest target in his ever-evolving tariff war: Italian pasta. Rummo is the sixth-generation grandson of the founder of Pasta Rummo, who opened a wheat mill in Benevento in southern Italy in 1846, using the family’s three horses to lug grain from the surrounding Campania region and Puglia to produce fresh pasta.

“Demand for premium pasta in the US has been growing,” says Rummo. Appreciated by consumers for a traditional processing method that guarantees it will cook to al dente perfection, sales of Pasta Rummo have been thriving.

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Ineos to cut a fifth of Hull jobs, blaming ‘dirt-cheap’ imports from China

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Company says more roles will be at risk unless UK government supports tariffs to protect industry

Ineos, the chemicals company owned by the billionaire Sir Jim Ratcliffe, is to cut a fifth of jobs at its East Yorkshire plant, blaming “sky high” energy costs and “dirt-cheap” imports from China.

The company founded in 1998 by Ratcliffe, who co-owns Manchester United FC, said it would cut 60 jobs at the Acetyls site in Hull, which makes petrochemical products such as acetic acid. It said more roles would be at risk across the industry unless the government stepped in.

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Starmer has avoided state-visit bear traps but has he changed any of Trump’s thinking?

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PM cannot afford for US president to walk away from Ukraine crisis and must persuade him to publicly support specific Gaza plans

With bear traps avoided and fireworks unlit, Keir Starmer will be delighted that his press conference with Donald Trump lent credence to his claim to be America’s first partner in defence, trade and now technology.

Trump, for his part, got the “great pictures” he wanted and was on his best low-wattage behaviour. He said he did not disagree with his host about much, save Starmer’s plan to recognise a Palestinian state. And he teetered on the edge of being diplomatic, at least until he advised Starmer to use the military to stop small boats crossing the Channel.

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Chinese economy slows amid Trump trade war and weaker consumer spending

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Slowing growth in factory output and retail sales prompts calls for fresh economic stimulus

China’s economy showed further signs of weakness last month as it comes under strain from Donald Trump’s trade wars and domestic problems, with factory output and consumer spending rising at their slowest pace for about a year.

The disappointing data adds pressure on Beijing to roll out more stimulus to fend off a sharp slowdown, with a debt crisis denting the country’s once-booming property sector and exports facing stronger headwinds.

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