tariff

Trump set to unleash 'Liberation Day' tariffs

BY DANNY KEMP

  • His plans have however sparked growing fears of a damaging trade war around the world that could drive up prices and cause widespread disruption.
  • US President Donald Trump is poised to unveil sweeping new "Liberation Day" tariffs on Wednesday, but kept the world guessing until the last minute about the scope of an onslaught that could spark a global trade war.
  • His plans have however sparked growing fears of a damaging trade war around the world that could drive up prices and cause widespread disruption.
US President Donald Trump is poised to unveil sweeping new "Liberation Day" tariffs on Wednesday, but kept the world guessing until the last minute about the scope of an onslaught that could spark a global trade war.
Trump will roll out the measures flanked by cabinet members in the Rose Garden of the White House at 4:00 pm (2000 GMT) -- after Wall Street markets close -- promising that they will stop America being "ripped off" and will deliver a new "golden age" of US industry.
But while Trump insisted he had decided on the reciprocal tariffs hitting countries that have targeted the United States, the White House admitted he was still ironing out the details with less than 24 hours to go late Tuesday.
The Republican billionaire has had a long love affair with tariffs, insisting in the face of economic experts that they are a cure-all that will tackle America's trade imbalances with friends and foes alike.
Critics say that not only will US consumers bear the brunt as importers pass on the cost, but that they could increase the risk of a damaging recession at home and abroad.
Global markets have been jittery for days ahead of Trump's announcement, while the countries most likely in the crosshairs have called for talks -- even as they ready retaliatory measures.

'Very kind'

The move also underscores the growing and profound gulf between Trump's America and many of its closest allies, not only on trade but on security, defense and almost everything else.
But in typically unpredictable fashion, the 78-year-old US president is keeping the details close to his chest.
Trump has trailed the measures for weeks, initially suggesting that the tariffs would simply match whatever levies other countries impose. 
On Monday, he merely said that he would be "very kind" -- but gave little away.
As the deadline drew near US media said he had also been considering blanket 20 percent tariffs -- and then that he was looking at a third option where some countries would get preferential treatment.
White House Press Secretary Karoline Leavitt said Trump was meeting his top advisors on the eve of the announcement, "perfecting it to make sure this is a perfect deal."
The tariffs would come into effect "immediately" after Wednesday's roll-out, she added -- effectively ruling out any delays for negotiations with other countries.
Trump has wobbled on several other tariff announcements since returning to office in January, blinking at the last minute with allies such as Canada and Mexico.
His plans have however sparked growing fears of a damaging trade war around the world that could drive up prices and cause widespread disruption.

'Couldn't care less'

Major economies including the European Union and Canada have vowed retaliation.
"We are going to be very deliberate in terms of the measures we take, to fight for Canada," Canadian Prime Minister Mark Carney said on Tuesday.
The European Union, which Trump has accused of trying to "screw" the United States, said Tuesday it still hoped to negotiate a solution -- but that "all instruments are on the table" to retaliate if necessary.
British Prime Minister Keir Starmer spoke with Trump on "productive negotiations" towards a UK-US trade deal. Vietnam said on Tuesday it would slash duties on a range of goods to appease Trump. 
The former property tycoon has used tariffs as a foreign policy weapon ever since his chaotic first term from 2017-2021.
Trump insists they will bring a "rebirth" of America's hollowed-out manufacturing capacity, and says companies can avoid tariffs by moving to the United States.
Sweeping auto tariffs of 25 percent that Trump announced last week -- saying he "couldn't care less" if prices of foreign cars went up -- are due to come into effect on April 3.
A 25 percent tariff on steel and aluminum from around the world came into effect in mid-March.
China was hit in March by additional 20 percent tariffs on all goods, triggering retaliatory duties from Beijing. The EU has unveiled its own measures to start mid-April.
dk/st/tgb

aerospace

Boeing chief to acknowledge 'serious missteps' at US Senate hearing

  • "Boeing has made serious missteps in recent years -- and it is unacceptable," Ortberg will say, according to the prepared remarks, which the company made public Tuesday.
  • The head of US aerospace giant Boeing will on Wednesday tell senators that the company has made "serious missteps in recent years" and commit to restoring consumer and investor confidence, according to an advance copy of his remarks.
  • "Boeing has made serious missteps in recent years -- and it is unacceptable," Ortberg will say, according to the prepared remarks, which the company made public Tuesday.
The head of US aerospace giant Boeing will on Wednesday tell senators that the company has made "serious missteps in recent years" and commit to restoring consumer and investor confidence, according to an advance copy of his remarks.
On the eve of the hearing before the Senate Commerce, Science and Transportation Committee, Kelly Ortberg sent a message to the company's 160,000 employees saying his testimony would be key "to restore trust" in the crisis-plagued manufacturer.
"Boeing has made serious missteps in recent years -- and it is unacceptable," Ortberg will say, according to the prepared remarks, which the company made public Tuesday.
Boeing has suffered for several years from production quality problems, with the latest major incident in January last year involving an Alaska Airlines 737 seeing a door plug fly off mid-flight.
In January, it reported a loss of $3.9 billion as the company continued to experience a hit from a more than seven-week labor strike that shuttered two major assembly plants.
Ortberg took over in August, and will testify on Boeing's restructuring efforts.
"We have made sweeping changes to the people, processes, and overall structure of our company," he will say. "While there is still work ahead of us, these profound changes are underpinned by the deep commitment from all of us to the safety of our products and services."
In his message to employees, he said "we are starting to turn the corner in our recovery," although he added that turning the company around would take "time and action."
Ortberg will acknowledge two 737 MAX 8 crashes in October 2018 and March 2019, which killed a total of 346 people -- some of whose relatives are expected at the committee hearing on Wednesday.
He will offer a "pledge to make the necessary changes so this never happens again."
Boeing has acknowledged that the design of its MCAS stall protection software contributed to the accidents, which occurred on new aircraft shortly after takeoff. 
Ortberg will testify that the aircraft manufacturer is implementing a new Safety Management System (SMS) that is "a framework built on proven aviation industry best practices, to proactively identify and manage safety risks that may impact our commercial and defense products." 
elm/tu/aha/md

Global Edition

Stock markets mostly advance ahead of Trump tariffs deadline

  • US stock markets initially ticked lower as uncertainty reigned over the size and scope of the latest move in Trump's campaign to shake up global trade, but closed in mixed territory, a day before Trump's self-described "liberation day" announcement. 
  • Global stock markets mostly rose Tuesday on a quiet day of trading ahead of US President Donald Trump's widely-touted announcement on reciprocal tariffs.
  • US stock markets initially ticked lower as uncertainty reigned over the size and scope of the latest move in Trump's campaign to shake up global trade, but closed in mixed territory, a day before Trump's self-described "liberation day" announcement. 
Global stock markets mostly rose Tuesday on a quiet day of trading ahead of US President Donald Trump's widely-touted announcement on reciprocal tariffs.
US stock markets initially ticked lower as uncertainty reigned over the size and scope of the latest move in Trump's campaign to shake up global trade, but closed in mixed territory, a day before Trump's self-described "liberation day" announcement. 
The White House has now penned the announcement in for Wednesday at 4pm local time in Washington (2000 GMT), after Wall Street markets close. 
"What Trump announces and the level of tariffs will likely move markets," Adam Sarhan from 50 Park Investments told AFP. 
"If you have a situation where it's weaker than expected, or there's more delays, or it's not as tight as people are fearing, then the market will likely rally," he said. 
"If you have a situation where Trump decides to go aggressive and announce higher-than-expected tariffs, then the market will likely fall," he continued, adding: "This is a game of expectations."
Asian and European stock markets clawed back some of their recent hefty losses, as traders hoped for greater clarity ahead of the impending tariffs.

Gold hits another record

Underscoring the market uncertainty, safe-haven gold touched a fresh record high of $3,149 an ounce on Tuesday.
Trump said Monday he would be "very kind" when he unveils the tariffs.
"Some on Wall Street are already talking about how April 2 may very well be lighter-than-feared," said Jose Torres, a senior economist at Interactive Brokers.
"But others worry that this economy can't handle a stress test of this magnitude and point to households increasingly unable to sustain expenditure patterns in light of mounting headwinds."
The lack of details on who will be hit with what has stoked market unease and fears of a recession in the world's largest economy.
In the first quarter that ended on Monday, the S&P 500 and the Nasdaq recorded their worst quarterly performance since 2022 as investors fretted over the impact of tariffs.
In Europe, Paris and Frankfurt gained after data showed inflation in the eurozone slowed closer toward the European Central Bank's two-percent target in March.
EU chief Ursula von der Leyen said Tuesday the bloc still hopes for a "negotiated solution" to US tariffs, but that "all instruments are on the table" to hit back if necessary.
London also rose, even as Prime Minister Keir Starmer warned that Britain would likely suffer from US tariffs despite making progress over a post-Brexit trade deal.
"While countries such as the UK might stand in a good position to strike a deal, there is a risk that tomorrow marks the beginning of a tit-for-tat trade war that brings yet more uncertainty and concern for markets," said Joshua Mahony, a chief analyst at Scope Markets.
"The expected retaliation from Canada, the eurozone, China, Japan, and Korea does signal that it could get worse before it gets better," he added.
The Tokyo stock market, which has borne the brunt of the pain owing to hefty selling of car giants including Toyota and Honda on tariff plans, closed flat while Hong Kong and Shanghai advanced.

Key figures around 2045 GMT

New York - Dow: UP less than 0.1 percent at 41,989.96 points (close)
New York - S&P 500: UP 0.4 percent at 5,633.07 (close)
New York - Nasdaq Composite: UP 0.9 percent at 17,449.89 (close)
London - FTSE 100: UP 0.6 percent at 8,634.80 (close) 
Paris - CAC 40: UP 1.1 percent at 7,876.36 (close)
Frankfurt - DAX: UP 1.7 percent at 22,539.98 (close)
Tokyo - Nikkei 225: UP less than 0.1 percent at 35,624.48 (close)
Hong Kong - Hang Seng Index: UP 0.4 percent at 23,206.84 (close)
Shanghai - Composite: UP 0.4 percent at 3,348.44 (close)
Euro/dollar: DOWN at $1.0793 from $1.0817 on Monday
Pound/dollar: UP at $1.2920 from $1.2916
Dollar/yen: DOWN at 149.53 yen from 149.94 yen
Euro/pound: DOWN at 83.51 pence from 83.69 pence
Brent North Sea Crude: DOWN 0.3 percent at $74.49 per barrel
West Texas Intermediate: DOWN 0.4 percent at $71.20 per barrel
burs-da/jgc

earnings

GM leads first quarter US auto sales as tariffs loom

  • Meanwhile, Toyota Motor North America reported 0.9 percent growth in vehicle sales to 570,269 units for the quarter.
  • General Motors led US vehicle sales in the first quarter, according to company reports Tuesday, as the industry braces for President Donald Trump's incoming tariffs this week.
  • Meanwhile, Toyota Motor North America reported 0.9 percent growth in vehicle sales to 570,269 units for the quarter.
General Motors led US vehicle sales in the first quarter, according to company reports Tuesday, as the industry braces for President Donald Trump's incoming tariffs this week.
GM said its US sales jumped 17 percent in the quarter from the same period a year ago, reporting 693,363 deliveries.
Fellow major automakers Toyota, Honda, Hyundai and Kia also reported sales increases, while Ford logged a small decline.
Tariffs of 25 percent on imported vehicles and certain parts are set to kick in Thursday, and economists warn that the charges could cause average auto prices to surge by thousands of dollars over time.
Trump is also due to announce "reciprocal" levies midweek -- which could hit imports from various countries -- on a slew of other goods to address trade practices that his administration deems unfair.
The tariffs could further affect US neighbors Canada and Mexico, both key players in North American vehicle manufacturing supply chains.
"GM's sales growth outpaced every other major automaker, and the driving force is our portfolio," said Rory Harvey, GM's president of global markets.
The company pointed to sales growth in its Chevrolet and Cadillac brands, with increases seen among electric vehicle models as well.
Meanwhile, Toyota Motor North America reported 0.9 percent growth in vehicle sales to 570,269 units for the quarter.
Its executive vice president Mark Templin said the company continued to "see steady sales from our Toyota and Lexus brands due in part to improved inventory levels and new models."
"We're also seeing our sales mix of electrified vehicles increasing," Templin said in a statement.
Honda's sales were up 5.3 percent from a year ago in the first quarter, those of Hyundai were up 10 percent, and Kia sales rose around 11 percent.
But US auto giant Ford reported a 1.3-percent drop in US sales -- to 501,291 vehicles -- from the same period in 2024.
The decline was mainly due to the discontinuation of certain models and the timing of rental fleet sales, the company said.
But its first quarter figures were better than a forecast by automotive research firm Edmunds.
Ford maintained in a statement that it saw "strong retail sales in March," thanks to sales of its best-selling F-Series pickup trucks and the Ranger and Maverick models.
Upcoming tariffs cast a pall over the auto industry, however, given that car parts will be targeted along with imported cars.
JPMorgan analysts recently estimated that over 80 percent of Ford's US sales are produced domestically. The corresponding figure for Honda was around 68 percent, Toyota about 57 percent and GM, 53 percent.
But many of the components going into building those cars are imported.
The American Automotive Policy Council representing the big three automakers -- Ford, GM and Jeep-maker Stellantis -- have warned that tariffs should be implemented in a way that avoids increasing costs for consumers and preserves the industry's competitiveness.
bys/gv

automobile

Tesla sales tumble in Europe in the first quarter

BY TAIMAZ SZIRNIKS

  • Stephanie Valdez Streaty of Cox Automotive said that it was "undeniable that Elon Musk is an influential factor whose actions affect the brand's image and sales".
  • Tesla sales kept falling in March in many European markets as it suffered from a double blow of boycotts against the policies of its founder Elon Musk and an ageing model line-up.
  • Stephanie Valdez Streaty of Cox Automotive said that it was "undeniable that Elon Musk is an influential factor whose actions affect the brand's image and sales".
Tesla sales kept falling in March in many European markets as it suffered from a double blow of boycotts against the policies of its founder Elon Musk and an ageing model line-up.
Sales of Tesla's electric cars in France fell 36.8 percent in March from a year ago amid a slight drop in the overall electric car market, according to figures released Tuesday by the Automotive Platform (PFA), which represents the country's manufacturers and suppliers. 
In Sweden, Tesla sales declined 63.9 percent in March and 55.2 percent in the first three months of the year, according to Mobility Sweden.
The Tesla Model Y SUV, the country's top-selling car in the first quarter of 2024, is now behind two Volvos, the luxury Volkswagen ID.7, and a Subaru.
In Denmark, Tesla sales fell 56 percent in the first quarter, according to Mobility Denmark.
Germany, Britain and Italy will announce their March figures in the coming days.
Already in the first two months of the year, Tesla's sales in the European Union were almost cut in half, with the company now holding just a 1.1 percent market share. 
At the same time, vandalism against charging stations and the brand's dealerships has increased, while several protests were held on Saturday outside retail locations in North America and Europe to contest Musk's close cooperation with US President Donald Trump.
Stephanie Valdez Streaty of Cox Automotive said that it was "undeniable that Elon Musk is an influential factor whose actions affect the brand's image and sales".
Environmental group Mighty Earth summed up the buyers' dilemma in a statement Tuesday: while Tesla's electric cars are positive from an climate point of view, Musk's actions as head of the government efficiency commission are "sabotaging climate action, kicking environmental cops off the job, and gutting the ability of the U.S. government to stop oil, coal, and meat companies from pouring pollution into the air and water".
Besides politics, Tesla's model offerings are ageing and face a slew of new competitors from Europe and above all Asia.   
bur-tsz/uh/LyS/gv/sbk

migration

No 'eye for an eye' approach to US tariffs: Mexico

  • But Sheinbaum said Tuesday "we do not believe in an eye for an eye, a tooth for a tooth, because that always leads to a bad situation."
  • Mexican President Claudia Sheinbaum said Tuesday there will be no "eye for an eye" approach as the country braces for new US import tariffs kicking in this week.
  • But Sheinbaum said Tuesday "we do not believe in an eye for an eye, a tooth for a tooth, because that always leads to a bad situation."
Mexican President Claudia Sheinbaum said Tuesday there will be no "eye for an eye" approach as the country braces for new US import tariffs kicking in this week.
The leader of the United States' biggest trading partner spoke on the eve of President Donald Trump's expected announcement of "reciprocal" tariffs, with 25 percent levies on imported cars and car parts.
Mexico has previously vowed a "comprehensive response" to Trump's tariffs, sticking to a strategy of prioritizing dialogue.
But Sheinbaum said Tuesday "we do not believe in an eye for an eye, a tooth for a tooth, because that always leads to a bad situation."
She added that "of course, measures are taken (in Mexico) because measures are taken on the other side, but the dialogue must continue."
Trump has said he will unveil a raft of so-called "reciprocal tariffs" Wednesday, on what he has dubbed America's "Liberation Day."
He insists the duties are necessary to combat trade imbalances with other countries.
Mexico's economy is considered one of the most vulnerable to Trump's tariffs due to its close trade relations with the United States.
The Latin American nation is home to many foreign-owned vehicle assembly plants operated by companies including Ford, General Motors, BMW, Volkswagen and Toyota.
More than 80 percent of Mexican exports go to the United States, including around three million vehicles a year.
Sheinbaum said her government would wait to hear the details of Trump's announcement Wednesday to respond accordingly.
"We are not certain, no country in the world is certain exactly what will be announced on April 2," she said at her daily press conference.
On the topic of migration, another point of contention with Mexico's northern neighbor, Sheinbaum insisted her government was willing to "coordinate" approaches with the United States, but "not subordinate" to it.
"The president answers to one authority only, and that is the people of Mexico," she said.
Sheinbaum was visited last Friday by US Homeland Security Chief Kristi Noem, who said she gave the president a list of demands related to curbing migration, including greater control over Mexico's border with Guatemala.
Guatemala is a transit country for many migrants trying to reach the United States from South America.
yug/mlr/cb/sla

drones

UK vows £20 million to boost drone and 'flying taxi' services

  • There have been several pilot schemes in the UK too -- from island postal services to rapid blood sample transport -- but commercial drone deliveries have been slower to get off the ground. 
  • The UK government said Tuesday it had pledged £20 million ($25.8 million) to help commercial drone services and "flying taxis" take off in Britain.
  • There have been several pilot schemes in the UK too -- from island postal services to rapid blood sample transport -- but commercial drone deliveries have been slower to get off the ground. 
The UK government said Tuesday it had pledged £20 million ($25.8 million) to help commercial drone services and "flying taxis" take off in Britain.
The drone delivery market has landed in several countries including the United States, allowing customers to have online shopping dropped at their doors by fleets of flying robots.
There have been several pilot schemes in the UK too -- from island postal services to rapid blood sample transport -- but commercial drone deliveries have been slower to get off the ground. 
Earlier this year Amazon, one of the big companies dominating the field in the United States, said it had chosen a town in northern England for its first UK drone parcel deliveries -- though it is still not clear when the scheme in Darlington could start.
Announcing the UK government funding on Tuesday, the transport ministry said the money would help kickstart new technologies and streamline regulations, in a move it said would benefit companies but could also see drones used by firefighters and paramedics.
The ministry added the UK's Civil Aviation Authority would receive £16.5 million from 2025-26 to work on regulations for drones and electric air taxis -- vehicles which resemble a cross between a drone and a small plane, and can take off like helicopters.
The regulations "could see air taxis in use from 2028," the transport ministry claimed, adding a further £5 million would be used "to support industry to turn these new technologies into profitable business that benefits communities".
Critics have argued the government should focus its attention elsewhere, and have raised concerns about the use of drones and aerial surveillance by the authorities.
Unions are also worried about the risk to jobs, while earlier this year the UK's prison watchdog warned gangs were using drones to deliver drugs and drop weapons to inmates inside jails.
Welcoming the new funding, Technology Secretary Peter Kyle said a "regulatory system that keeps pace" was needed for new technologies to succeed.
"This is regulation that will unlock a raft of new commercial and public service opportunities for the use of drones," he said.
He said drones would have to transmit their location to reduce the risk of crashes and the "highest safety standards" would be maintained.
Aviation minister Mike Kane said he wanted "the UK to have the most advanced aviation technology ecosystem in the world."
"That means creating a nimble regulatory environment and a culture of innovation, so everyone can benefit from cutting-edge transport," he said.
The UK has so far seen the deployment of an army of flightless shopping delivery robots in Milton Keynes, post delivered by drone on the Scottish isles of Orkney, and blood samples sent through the skies by a London hospital for urgent testing.
lcm/jkb/ach 

automobile

UK Supreme Court opens car loans hearing as banks risk huge bill

BY OLIVIER DEVOS

  • Banks are appealing a landmark ruling by a Court of Appeal in November that deemed it unlawful for car dealers to receive a commission on loans without sufficiently informing borrowers.
  • The UK's highest court on Tuesday began a hearing to determine whether controversial car loans were unlawful, in a case that could cost banks billions of pounds in compensation.
  • Banks are appealing a landmark ruling by a Court of Appeal in November that deemed it unlawful for car dealers to receive a commission on loans without sufficiently informing borrowers.
The UK's highest court on Tuesday began a hearing to determine whether controversial car loans were unlawful, in a case that could cost banks billions of pounds in compensation.
Banks are appealing a landmark ruling by a Court of Appeal in November that deemed it unlawful for car dealers to receive a commission on loans without sufficiently informing borrowers.
It is estimated that millions of drivers would be eligible for compensation should the Supreme Court side with borrowers in the three-day hearing.
The loans, which were around for 14 years from 2007, incentivised car dealers to set higher interest rates in return for a bigger commission from the banks.
Britain's financial watchdog has made the commissions illegal.
The Supreme Court will consider two cases against South African lender FirstRand bank and one against British bank Close Brothers.
Outside the Supreme Court on Tuesday, Desmond Gourde, a supervisor at a bus company, told AFP that he was there to support those who want to claim back money. 
Gourde managed to receive compensation after he purchased a used Honda Jazz in 2018 for more than £8,000 including interest -- without knowledge of a nearly £800 commission for the dealer. 
"I had no idea there was a commission. I just applied for the finance, signed the paperwork, but no one told me about the commission," the 56-year old said.

Hidden commission

In preparation for the ruling, British banks have set aside considerable sums, including Lloyds Bank, which has earmarked nearly £1.2 billion ($1.6 billion).
Contacted by AFP, the banks declined to comment at the start of the latest hearing.
Consumer group Which! estimated it could cost banks up to £16 billion, while other analysts expect the sums to be higher, with those at HSBC suggesting it could hit £44 billion.
The highest figures could put it on the same scale as the fallout from payment protection insurance (PPI), one of Britain's most costly consumer scandals, according to analysts.
Kavon Hussain, a lawyer for one of the claimants, said that "when you went to buy a car the interest rate that you paid was set by the car dealer".
He explained that car dealers would likely have judged who could afford more or who could afford less to determine the rate.
Amid concerns over the economic fallout, the UK government made an unsuccessful attempt to intervene in the case earlier this year.
Analysts said that the Labour administration may be concerned about the impact on banks' willingness to provide credit at a time when the economic outlook remains uncertain. 
"The bigger the car dealership network, the bigger the commissions," said Sam Ward, lead investigator at Sentinel Legal, who has worked on several of these car finance cases. 
"We found one car dealership network where they got paid £39 million as an advance commission before they'd sold even one car finance policy," he told AFP.
The Financial Conduct Authority, which banned undisclosed commissions in 2021, plans to wait for the judgement before deciding whether to start a programme for automatic compensation.
ode-ajb/bcp/lth

music

Trump signs executive order targeting ticket scalping

  • By the time you check out, it's $170," said Kid Rock, who wore a straw fedora and American-flag emblazoned red suit to the Oval Office. 
  • With American entertainer Kid Rock at his side, US President Donald Trump signed an executive order Monday clamping down on ticket scalping and live event pricing.
  • By the time you check out, it's $170," said Kid Rock, who wore a straw fedora and American-flag emblazoned red suit to the Oval Office. 
With American entertainer Kid Rock at his side, US President Donald Trump signed an executive order Monday clamping down on ticket scalping and live event pricing.
The directive seeks to prevent "unscrupulous middlemen" from profiting off reselling tickets for concerts and other events at an "enormous markup".
It orders the US attorney general and the Treasury secretary to use "all legal means" to stamp out soaring price gouging, and calls on the Federal Trade Commission to "ensure price transparency at all stages of the ticket-purchase process, including the secondary ticketing market."
"You can buy a ticket for $100. By the time you check out, it's $170," said Kid Rock, who wore a straw fedora and American-flag emblazoned red suit to the Oval Office. 
The "Born Free" singer, who appeared with Trump on the presidential campaign trail in 2024, added that due to "bots" tickets were being relisted "for sometimes a 400-500 percent markup."
The administration of Trump's predecessor Joe Biden also targeted scalpers, suing concert booking website Ticketmaster and its parent company Live Nation Entertainment last year over monopoly allegations.
In a statement Monday, Live Nation, which has denied monopoly allegations, said it supports Trump's order, and called for enforcement. 
fz-lb/mlm

inflation

Eurozone inflation eases in March as tariff threat looms

BY DANIEL ARONSSOHN

  • The eurozone inflation data "gives the central bank additional room to prioritize growth without abandoning its inflation mandate," said Daniela Sabin Hathorn, senior market analyst at Capital.com, in a note.
  • Inflation in the eurozone slowed further in March, official data showed on Tuesday, indicating possible breathing room for policymakers despite the threat of turbulence from US trade tariffs.
  • The eurozone inflation data "gives the central bank additional room to prioritize growth without abandoning its inflation mandate," said Daniela Sabin Hathorn, senior market analyst at Capital.com, in a note.
Inflation in the eurozone slowed further in March, official data showed on Tuesday, indicating possible breathing room for policymakers despite the threat of turbulence from US trade tariffs.
Inflation in the single currency area reached 2.2 percent, calmed by an easing of energy tariffs and prices in the services sector, the EU's Eurostat statistics agency said.
That was down slightly from the 2.3 percent figure for February, bringing the rate close to the European Central Bank's two-percent target.
Inflation has gradually eased since a peak in October 2022 following Russia's invasion of Ukraine, which sent energy prices soaring.
The European Central Bank has pivoted from hiking interest rates to tackle inflation, to lowering them to boost the eurozone's floundering economy.
Last month it lowered its benchmark deposit rate by a quarter of a percentage point to 2.5 percent, but its head Christine Lagarde warned of risks from US tariff threats and massive German spending plans.
In March inflation in prices for services eased to 3.4 percent from 3.7 percent in February, Eurostat said.
In energy, the rate was negative 0.7 percent, from 0.2 percent the month before. Food-price inflation accelerated slightly however.
The key measure of underlying inflation -- stripping out the effect of volatile energy and food prices -- also eased, from 2.6 to 2.4 percent.
Economist Jack Allen-Reynolds at investment research group Capital Economics said the March fall in inflation "strengthens the case for the ECB to cut interest rates at the meeting on 17th April", again by a quarter-point.

Trade tensions threat

Economists warn that US President Donald Trump's announcement of sweeping trade tariffs on other countries risks driving inflation up again and curbing growth.
Trump is scheduled to unveil his latest wave of tariffs on Wednesday but has not indicated their full size or scope.
He introduced 25-percent tariffs on imported steel and aluminium last month and has vowed duties of the same size on vehicles shipped to the United States from Wednesday.
ING bank economist Bert Colijn said the new inflation figures could justify a new rate reduction in spite of the high uncertainty created by the tariff threat.
Lagarde, however, cautioned on Monday that it was too soon to declare victory in the fight against inflation.
"Unfortunately we are facing a lot of uncertainty," she told French radio station France Inter, warning that the threat of new tariffs "leads to changes".
The eurozone inflation data "gives the central bank additional room to prioritize growth without abandoning its inflation mandate," said Daniela Sabin Hathorn, senior market analyst at Capital.com, in a note.
However, concerns over the economic impact from the trade tensions "may encourage the ECB to stay on a gradual but steady path toward monetary easing", she added.
aro/rlp/lth

quake

Chinese developer under scrutiny over Bangkok tower quake collapse

BY SALLY JENSEN AND CHAYANIT ITTHIPONGMAETEE

  • The Bangkok construction collapse is not the first time CREC and its subsidiaries have come under fire after deadly incidents.
  • A Chinese construction company is facing questions over the deadly collapse of a Bangkok skyscraper -- the only major building in the capital to fall in a catastrophic earthquake that has killed more than 2,000 people in Thailand and neighbouring Myanmar.
  • The Bangkok construction collapse is not the first time CREC and its subsidiaries have come under fire after deadly incidents.
A Chinese construction company is facing questions over the deadly collapse of a Bangkok skyscraper -- the only major building in the capital to fall in a catastrophic earthquake that has killed more than 2,000 people in Thailand and neighbouring Myanmar.
The 30-storey tower, still under construction, was to house government offices, but the shaking reduced the structure to a pile of rubble in seconds, killing at least 13 people and injuring nine.
It was the deadliest single incident in Thailand after Friday's 7.7-magnitude quake, with the majority of the kingdom's 20 fatalities thought to be workers on the building site and hopes fading for around 70 still trapped. 
Sprawling Bangkok bristles with countless high-rise blocks, but none have reported major damage, prompting many to ask why the block under construction gave way.
"We have to investigate where the mistake happened," said Thai Prime Minister Paetongtarn Shinawatra, who has ordered a probe into the materials and safety standards at the construction site.
"What happened from the beginning since it was designed? How was this design approved? This was not the first building in the country," she told reporters on Saturday.
The development near Bangkok's popular Chatuchak market was a joint project involving China Railway No. 10 Engineering Group (Thailand) -- an offshoot of China Railway Group (CREC), one of the world's largest construction and engineering contractors.

Questions raised

Testing of steel rebars -- struts used to reinforce concrete -- from the site has found that some of the metal used was substandard, Thai safety officials said on Monday.
Industry Minister Akanat Promphan announced that a committee would be set up to investigate, saying one supplier of the steel had failed safety tests in December and may have its licence withdrawn. He did not name the supplier.
Professor of Civil Engineering at King Mongkut's Institute of Technology Ladkrabang Suchatwee Sunaswat said there were questions to be answered.
"We have to look at the design. At the beginning, how they calculate, how they design. And in the rescue mission, how they collect evidence at the same time," he told reporters on Saturday.
- Safety complaints - 
The local partner in the project, Italian-Thai Development (ITD) offered condolences on Monday to quake victims but said it was "confident" the incident would not impact its other projects.
Beijing-owned building conglomerate CREC is one of the world's largest construction and engineering contractors, with projects in more than 90 countries and regions, according to its website.
The Bangkok construction collapse is not the first time CREC and its subsidiaries have come under fire after deadly incidents.
A tide of anger was unleashed at authorities in Serbia following the deaths of 14 people when a roof collapsed in November last year at a train station built by CREC subsidiaries -- largely focused on reports of alleged shortcuts made with building projects.
Roisai Wongsuban of the Migrant Working Group advocacy organisation said there have been a large number of complaints from migrant workers employed by Chinese companies in Thailand about lax safety standards and poor labour rights.
"For Chinese companies we can't see the human rights due diligence, to see if labour standards are being met," she told AFP. 
"There is always a power imbalance between employer and employee."
Bangkok's construction boom is powered by an army of labourers, a large proportion of them migrant workers from Myanmar, toiling on hot building sites for low pay.
The Migrant Working Group has called on Thailand's labour ministry to hold the employers involved in the construction project criminally liable if they have failed to meet health and safety laws.

China sensitivities

AFP has asked China Rail No. 10 Engineering Thailand and CREC for comment but has not had a response.
An announcement celebrating the completion of the main structure at the Chatuchak construction site posed on China Rail No. 10's official WeChat channel was deleted soon after Friday's quake.
AFP archived the post shortly after the tremors hit but before the page was removed.
Local media said that four Chinese nationals were apprehended on Saturday for attempting to retrieve documents from the collapse site.
But China is the largest source of foreign direct investment in Thailand, injecting $2 billion into the kingdom in 2024, according to Open Development Thailand, and the government typically handles anything linked to Beijing with kid gloves.
Paetongtarn said an investigation into the collapse launched on Monday would not be "specific to one country".
"We do not want one particular country to think we are only keeping eyes on (it)," she said on Tuesday.
At a small shelter near the site on Monday, 45-year-old Naruemol Thonglek waited for news of her boyfriend, electrician Kyi Than, who was missing under the enormous mound of concrete and twisted metal being lifted by mechanical diggers.
"I'm devastated," she told AFP. "I've never seen anything like this in my entire life."
sjc-ci/pdw/dhw

industry

Facing US tariffs, Canadians hunt for business in Europe

BY CLEMENT KASSER

  • The president slapped 25-percent tariffs on US steel and aluminium imports on March 12, and even briefly threatened to hike the duty to 50 percent on Canadian imports.
  • With his small steel mill facing hefty US tariffs, Canadian businessman Chris Wyatt is hunting for new European customers at the world's biggest industrial technology fair in Germany.
  • The president slapped 25-percent tariffs on US steel and aluminium imports on March 12, and even briefly threatened to hike the duty to 50 percent on Canadian imports.
With his small steel mill facing hefty US tariffs, Canadian businessman Chris Wyatt is hunting for new European customers at the world's biggest industrial technology fair in Germany.
"There's uncertainty in the markets so big projects are being shelved or they're just not moving ahead," said sales director Wyatt, handing out flyers at his stand, alongside big players in robotics and factory machinery.
This week's Hanover Fair, which has attracted more than 4,000 exhibitors from around 60 countries, takes place as US President Donald Trump gears up to announce a wave of "reciprocal tariffs", ratcheting up global trade tensions even further.
And this year's guest of honour is Canada -- a clear signal that Europe stands with Ottawa as it faces not just hefty duties from the United States, its largest trading partner, but also Trump's threats to annex the country.
"Welcome to Germany, dear Canadian friends," German Chancellor Olaf Scholz said Sunday ahead of the fair's opening. "We stand by your side." 
His comments highlighted warming ties between Europe and Canada amid Trump's sabre-rattling -- with some even joking that Canada should join the EU.
For Wyatt the impacts of Trump's trade war are already being felt. 
The president slapped 25-percent tariffs on US steel and aluminium imports on March 12, and even briefly threatened to hike the duty to 50 percent on Canadian imports.
Wyatt's Ontario company Kubes Steel currently exports 80 percent of its production, specialised steel for a range of industries including the nuclear sector, to the United States.
"Of course, we are concerned," said Wyatt, whose company employs about 80 people. "People aren't spending money at this point."
Still he is hopeful the trade fair will bring new opportunities -- he managed to make contacts with prospective new clients, including Spanish transport companies.

Tariff 'own goal'

In his opening address, Scholz called for stronger ties between the European Union and Canada as the two sides "complement each other" when it comes to making machinery, artificial intelligence, renewable energy and electric vehicles.
Closer ties with G7 economy Canada also stand to benefit Europe and in particular Germany, which will be hit hard by new 25-percent US duties on imports from the auto sector, one of the country's flagship industries.
The auto duties are bad news for Milko Konzelmann, whose German family-run business producing plastic car parts and valves makes around a quarter of its sales in the world's biggest economy.
"I will lose money," he said, adding that he was waiting to see how long Trump would keep pushing tariffs, which he described as an "own goal".
But if there is no change, the company will focus more on Asia.
Shifting production to the United States to avoid tariffs would "take years" and is a "big decision for a medium-sized company" with just 300 employees, he said. 
Despite the hostility towards Trump in Europe, American companies, including Dell, IBM, Microsoft and Nvidia, were out in force in Hanover, with some not shy about speaking in favour of the president's drive to rebalance US trade with the EU.
Manufacturing powerhouse Germany stands out when it comes to US complaints on trade -- Europe's biggest economy logged a record trade surplus with the United States last year and huge numbers of its goods, from cars to pharmaceuticals, are shipped to America.
"We have to be able to compete and we can't sit there, playing a game where they (Europe and Asia) sell to us but we can't sell to them," Ryan Mosher, from small US company Conrad that makes air compressor parts, told AFP. 
Still, he concedes trade tensions will hit his business: "I'm going to lose some money, that's for sure."
Texas businesswoman Suzanne Stewart also said the tariffs would impact her company, which makes metal mesh, as it needs to keep importing some materials from Asia.
"In reality not everything is available in the US," she said.
kas/sr/vbw/rlp

tariff

Carmakers face doubts and jolts over US tariffs

BY TAIMAZ SZIRNIKS

  • US manufacturers are still hoping that tariffs will be reduced on vehicles imported from Canada and Mexico, where they have numerous factories.
  • Raise prices or cut into their margins, open or close factories: carmakers must soon make major decisions as the United States imposes stiff tariffs on imported vehicles.
  • US manufacturers are still hoping that tariffs will be reduced on vehicles imported from Canada and Mexico, where they have numerous factories.
Raise prices or cut into their margins, open or close factories: carmakers must soon make major decisions as the United States imposes stiff tariffs on imported vehicles.
The 25-percent tariffs that the administration of President Donald Trump will impose as of Thursday will apply to cars and parts not manufactured in the United States.
Even US automakers will be impacted as they import foreign parts and manufacture vehicles for the US market in neighbouring Canada and Mexico.
Bank of America estimates that the tariffs will apply to 7.3 million vehicles, or eight percent of global sales, and will expose carmakers to added costs and chaos.

Taking stock

One, albeit temporary, strategy to cope with the new tariffs is to avoid them by shipping as many vehicles as possible to the United States before they come into force.
"Shipments have expanded quite a bit to absorb the first shock" of the tariffs, said Cigdem Cerit, an auto industry expert at Fitch Ratings.
"Everyone did build a little buffer," she added.
South Korea's Hyundai was among the automakers that most built up its stock of cars, according to Cox Automotive, an automotive services firm. 
US-European auto giant Stellantis -- a 14-brand company whose vehicles include Jeep, Peugeot and Fiat -- ate into its ample stocks that had weighed on results in previous quarters.
But the stocks will likely last no more than a few weeks, especially if Americans rush to dealers to snap up any remaining deals.
"After an initial, short surge in buying, we expect vehicle sales to fall, new and used prices to increase, and some models to be eliminated if tariffs persist," said Jonathan Smoke, chief economist at Cox Automotive.

Sticker shock

It is an open question about how much car prices will rise and to what extent sales will fall.
Bank of America estimates that US vehicle prices would rise by about $10,000 if manufacturers fully pass on the cost of tariffs and maintain their profit margins.
"However, we don't expect consumers would absorb the price increase in full," said analysts at the bank.
Carmakers "are more likely to sell vehicles at breakeven until they rebalance the production footprint", it said, estimating that US consumers would see price hikes of around $4,500.
Mid-range imported vehicles are likely to feel the pinch, such as the Chevrolet Silverado pick-up and the Toyota Rav4 SUV.
But even manufacturers like Porsche could have trouble passing on the cost of tariffs on low-end models like its Macan SUV, said Fitch's Cerit.
Ferrari was the first carmaker to announce a hike in prices -- as much as 10 percent -- on vehicles sold in the United States, its top market.
A major question is whether consumers continue to buy the same vehicles at a higher price, said Deloitte auto analyst Guillaume Crunelle.
He believes that is unlikely as "people buy in the price bracket that corresponds with their means".

Made in the USA

Donald Trump has stated that the goal of the tariffs is to encourage manufacturing jobs to return to the United States, but it is unclear whether that will be achieved.
Crunelle said companies will ask themselves: "Is it more competitive to manufacture in the United States, with a weaker market, or to pay customs duties?"
US manufacturers are still hoping that tariffs will be reduced on vehicles imported from Canada and Mexico, where they have numerous factories.
"Manufacturers have need for certainty," said automotive sector analyst Sebastien Amichi at the consulting firm Kearney.
Hyundai and Stellantis have announced the opening or reopening of factories since Trump's November re-election.
But such moves can take several years and suppliers, which are also in a weak position due to the switch to electric vehicles, must also follow manufacturers.
European and Japanese carmakers that play Trump's game face a double cost, according to Deloitte's Crunelle: in addition to building new factories they have to pay the costs of laying off workforces at home.
Some may refuse to have their arms twisted into manufacturing in the United States.
"I'll bet that certain manufacturers will prefer to reduce their production costs" at home rather than set up in the United States, Crunelle said.
tsz/rl-lth/bc

tariff

World economies brace for Trump tariffs deadline

BY BEIYI SEOW

  • Economists have expected the upcoming salvo could target the 15 percent of partners that have persistent trade imbalances with the United States, a group that US Treasury Secretary Scott Bessent dubbed a "Dirty 15."
  • US trading partners scrambled Tuesday to prepare for the latest raft of Donald Trump tariffs, after the US president left unclear who would be targeted but promised to be "very kind" in addressing what he says are unfair trade imbalances.
  • Economists have expected the upcoming salvo could target the 15 percent of partners that have persistent trade imbalances with the United States, a group that US Treasury Secretary Scott Bessent dubbed a "Dirty 15."
US trading partners scrambled Tuesday to prepare for the latest raft of Donald Trump tariffs, after the US president left unclear who would be targeted but promised to be "very kind" in addressing what he says are unfair trade imbalances.
Trump -- who has been making unprecedented use of presidential powers since taking office in January -- said he could announce as early as Tuesday night exactly what "reciprocal tariffs" will be imposed.
According to the Republican billionaire, the world's biggest economy has been "ripped off by every country in the world," and he is promising "Liberation Day" for the United States.
Asked for details, he told reporters Monday: "You're going to see in two days, which is maybe tomorrow night or probably Wednesday."
But he added: "We're going to be very nice, relatively speaking, we're going to be very kind."
Critics warn that the strategy risks a global trade war, provoking a chain reaction of retaliation by major trading partners like China, Canada and the European Union.
Over the weekend, China, South Korea and Japan agreed to strengthen free trade between themselves.
But Trump said he was not worried the levies would push allies toward Beijing, adding that a deal on TikTok could also be tied to China tariffs.
White House Press Secretary Karoline Leavitt said the goal on Wednesday would be to announce "country-based tariffs," although Trump remains committed to imposing separate, sector-specific charges.
The Wall Street Journal reported that Trump's advisers pitched imposing a 20 percent global tariff to hit almost all US trading partners. Trump has remained vague, saying his tariffs would be "far more generous" than ones already levied against US products.
The uncertainty has jolted markets, hammering equities across the board and stoking recession fears. Asian stocks, which fell sharply Monday after Trump said his tariffs would include "all countries", rebounded somewhat Tuesday after his promises to be "nice".

'Economic pain'

Trump's fixation on tariffs is fanning US recession fears. Goldman Sachs analysts raised their 12-month recession probability from 20 percent to 35 percent.
This reflects a "lower growth forecast, falling confidence, and statements from White House officials indicating willingness to tolerate economic pain." Goldman Sachs also lifted its forecast for underlying inflation at the end of 2025.
For now, IMF chief Kristalina Georgieva said Trump's tariffs were causing anxiety, but their global economic impact should not be dramatic.
China and Canada have imposed counter-tariffs on US goods, while the EU unveiled its own measures to start mid-April.
EU chief Ursula von der Leyen said Tuesday the bloc still hopes for a "negotiated solution", but that "all instruments are on the table" to hit back if necessary.
The EU has already been hit by several US tariff announcements since Trump returned to office in January, including a 25-percent levy on auto imports coming into force on Thursday.
Besides reciprocal country tariffs, Trump's "Liberation Day" announcement could entail additional sector-specific levies on the likes of pharmaceuticals and semiconductors. 
Economists have expected the upcoming salvo could target the 15 percent of partners that have persistent trade imbalances with the United States, a group that US Treasury Secretary Scott Bessent dubbed a "Dirty 15."
The United States has some of its biggest goods deficits with China, the EU, Mexico, Vietnam, Taiwan, Japan, South Korea, Canada and India.

'Existential moment'

US trade partners are rushing to minimize their exposure, with reports suggesting India might lower some duties.
On Tuesday, Vietnam said it would slash duties on a range of goods including cars, liquefied gas and some agricultural products.
Japan announced it will set up around 1,000 "consultation centers" for businesses hit by US tariffs.
Speaking by phone to his US counterpart on Monday, Mexican Foreign Secretary Juan Ramon de la Fuente urged the preservation of free trade agreements between North American countries, and discussed the automobile industry, where 25 percent tariffs are poised to come into effect on April 3.
European Central Bank President Christine Lagarde said Monday that Europe should move towards economic independence, telling France Inter radio that Europe faces an "existential moment."
Separately, British Prime Minister Keir Starmer spoke with Trump on "productive negotiations" towards a UK-US trade deal, while German Chancellor Olaf Scholz said the EU would respond firmly to Trump but was open to compromise.
It is "entirely possible" for fresh tariffs to be swiftly reduced or put on hold, said Greta Peisch, a former official at the US Trade Representative's office.
In February, Washington paused steep levies on Mexican and Canadian imports for a month as the North American neighbors pursued negotiations.
bys/st/lb/mtp

climate

'Heartbreaking' floods swamp Australia's cattle country

BY STEVEN TRASK

  • Officials said more than 100,000 livestock -- cattle, sheep, goats and horses -- had been swept away, were missing, or had drowned.
  • Whole herds of cattle have drowned in vast inland floods sweeping across the Australian outback, officials said Tuesday, as the muddy tide drenched an area the size of France.
  • Officials said more than 100,000 livestock -- cattle, sheep, goats and horses -- had been swept away, were missing, or had drowned.
Whole herds of cattle have drowned in vast inland floods sweeping across the Australian outback, officials said Tuesday, as the muddy tide drenched an area the size of France.
Swollen rivers burst their banks after unusually heavy downpours last week over outback Queensland, an arid region home to some of the country's largest cattle ranches.
Officials said more than 100,000 livestock -- cattle, sheep, goats and horses -- had been swept away, were missing, or had drowned.
"These are only early indications of the magnitude of this disaster and while these preliminary numbers are shocking, we are expecting them to continue to climb as flood waters recede," said state agriculture minister Tony Perrett.
"It's heartbreaking to consider what western Queenslanders will be going through over the weeks and months as they discover the full extent of losses and damage -- and start the long slog to start again."
Researchers have repeatedly warned that climate change amplifies the risk of natural disasters such as bushfires, floods and cyclones.

Fodder drop

Flood waters stretched some 500,000 square kilometres (190,000 square miles) across sparsely populated western Queensland, Perrett said, a landmass roughly equivalent to France.
Industry body AgForce told local media some cattle ranches may have lost almost 100 percent of their herd.
The government Bureau of Meteorology said some towns had recorded as much as 500 millimetres (20 inches) of rain in the space of a week -- their typical yearly total.
"Unfortunately, more rainfall is on the way," forecaster Dean Narramore said.
"The reason why we are so concerned about that is because we have numerous flood warnings current for much of Queensland."
Muddy livestock survived by crowding together on the few small hills cresting above the flood waters, photos posted to social media showed.
Queensland's fire department used helicopters to drop bales of fodder near surviving animals cut off from food.
The state's primary industries department said some 4,000 kilometres (2,500 miles) of road had been flooded -- a distance greater than the famed Route 66 connecting Chicago to Los Angeles.
Rising waters on Tuesday morning encircled the remote outpost of Thargomindah, which describes itself as Australia's farthest town from the sea.
A makeshift dirt flood levy was dug around the town to protect its 200 residents.

Cattle country

"Preparations are well underway, including securing food deliveries, ensuring the airport has enough aircraft fuel and if need be an evacuation point and accommodation," the shire council said.
"Our shire's isolated properties are stocked with food and supplies and doing okay under the circumstances."
Australia's so-called "channel country" is one of the nation's biggest cattle fattening grounds.
Most of the time its sweeping plains are dry and inhospitable. 
But cattle gorge themselves on the pastures that sprout whenever wet season rains fill the dry creek beds -- or channels -- that snake through the region.  
sft/djw/cms/mtp

automobile

French prosecutors demand Volkswagen face fresh Dieselgate trial

BY GUILLAUME DAUDIN

  • On top of numerous lawsuits still pending against the company in the United States and other countries, French prosecutors have now called for it to face charges of aggravated fraud in France too.
  • Prosecutors in Paris have called for German carmaker Volkswagen to face justice in France to compensate French consumers over the Dieselgate emissions fraud scandal, according to a court filing seen by AFP on Tuesday.
  • On top of numerous lawsuits still pending against the company in the United States and other countries, French prosecutors have now called for it to face charges of aggravated fraud in France too.
Prosecutors in Paris have called for German carmaker Volkswagen to face justice in France to compensate French consumers over the Dieselgate emissions fraud scandal, according to a court filing seen by AFP on Tuesday.
In one of the biggest scandals to hit the auto industry, Volkswagen admitted in 2015 it had sold 11 million vehicles equipped with devices designed to cheat environmental regulations by lowering cars' emissions during testing.
On top of numerous lawsuits still pending against the company in the United States and other countries, French prosecutors have now called for it to face charges of aggravated fraud in France too.
The company in response contested the French allegations, saying it was not liable to face trial in the Paris case.
In a court filing in late February and later seen by AFP, prosecutors said nearly a million French customers had to pay for servicing and repairs after the emissions breach was revealed.
They said that a 2021 experts' report concluded the company used the test-cheating software under a "cost-benefit" strategy "approved by management".
They cited as an aggravating factor the harm to health from the nitrogen dioxide emissions whose levels were falsely represented by the manufacturer.
Volkswagen told AFP in a statement it "contests the grounds of the accusations of aggravated fraud".
It "judges that French consumers did not suffer any harm such as to make them liable for compensation".
It said that vehicles sold in France had already been covered by a court case in Germany that ended in 2018 with it paying out a billion euros (more than $1 billion) in compensation.
"A double conviction on identical allegations is totally prohibited," it said.
The Paris prosecutors insisted the French charges were "complementary" to the German case with a focus on consumers' rights.
gd/cal/rlp/rl

cryptocurrency

Political support leading to increasing fallout for crypto

BY LUCIE LEQUIER

  • Having reportedly made Trump at least $350 million, according to the Financial Times, about 810,000 buyers went on to lose more than $2 billion combined, stated crypto data group Chainalysis.
  • Support for cryptocurrencies from US President Donald Trump or Argentine leader Javier Milei has seen investors lose billions of dollars and is damaging a sector struggling for credibility, researchers told AFP. "The entire crypto industry is being tarnished," said Claire Balva, strategy director for fintech company Deblock.
  • Having reportedly made Trump at least $350 million, according to the Financial Times, about 810,000 buyers went on to lose more than $2 billion combined, stated crypto data group Chainalysis.
Support for cryptocurrencies from US President Donald Trump or Argentine leader Javier Milei has seen investors lose billions of dollars and is damaging a sector struggling for credibility, researchers told AFP.
"The entire crypto industry is being tarnished," said Claire Balva, strategy director for fintech company Deblock.
Argentine prosecutors are reportedly examining whether Milei engaged in fraud or criminal association, or was in breach of his duties, when he praised the $LIBRA cryptocurrency on social media in February.
The token's value soared from just a few cents to almost $5 and then crashed. Milei deleted his blessing hours later.
He denies all allegations made against him.
"I did not promote it," Milei told broadcaster TN in February, adding it "is a problem between private parties because the State does not play a role here".
"I acted in good faith," he said.
The price collapsed after a handful of early investors decided to sell at a huge profit, causing colossal losses for the majority of those who purchased $LIBRA.
It also dragged down prices of other cryptocurrencies, including bitcoin.
Hayden Davis, who helped launch $LIBRA, said he had been inspired by the initial success of Trump's memecoin, $TRUMP, that marked the president's inauguration.
Having reportedly made Trump at least $350 million, according to the Financial Times, about 810,000 buyers went on to lose more than $2 billion combined, stated crypto data group Chainalysis.
A memecoin is a cryptocurrency that rides on the popularity of a viral personality or phenomenon on the internet and is often seen as a purely speculative asset.

Relying on trust

Once a fierce critic of cryptocurrencies, Trump has become a fervent defender.
He is offering multiple products linked to digital currencies, notably through his World Liberty Financial exchange, increasing accusations of a conflict of interest. 
On paper, his support for crypto projects could boost the sector's legitimacy.
"But at the same time, it can backfire," said Larisa Yarovaya, director of the Centre for Digital Finance at Southampton Business School. 
"Any conflicts that will emerge from it... any hackers, speculative attacks, any problems in relation to these specific coins or these specific projects" can prove counterproductive, she told AFP.
There is scepticism also over the launch in February of the memecoin $CAR by the Central African Republic.
"The domain name had been reserved only a few days before" launch, noted Balva, which "shows that there was too little preparation".
The Central African Republic was the second country to adopt bitcoin as legal tender, after El Salvador in 2021, which has since reversed course owing to a lack of local popularity.
A precursor to other cryptocurrencies, bitcoin was launched in 2008 as a way to free transactions from traditional financial institutions, notably banks.
Cryptocurrencies are based on blockchain technology, which publicly records transactions between people holding and exchanging them.
In the absence of a centralised authority, the system relies on "trust" in the people "who are endorsing these products", said Maximilian Brichta, a doctoral student of communication at the University of Southern California.

Rigged game

Many traders will use automated programmes to buy a new token as early as possible in the hope of reselling it for maximum profit.
Milei defended himself by likening losses endured by buyers of $LIBRA to someone entering a casino and knowing they may not win.
However with crypto, it is argued by some that the "game" is rigged from the outset.
To avoid price manipulation, "when launching a cryptocurrency, best practice dictates that the first investors... hold a very small share of the offering" and are prevented from selling for "several years", said Balva.
Except that at the launch of $LIBRA, "more than 80 percent" of the available tokens were in the hands of "a handful of large holders (who) controlled all the liquidity and could liquidate it all at any time", she added.
According to Balva, this was "either monumental recklessness or outright fraud".
lul-bcp/jkb/phz/jfx

tariff

Trump tariffs threaten Latin American steel industry

BY MAURICIO RABUFFETTI

  • Its Huachipato steelworks, the country's largest, shut down its blast furnaces for good.
  • Chile's largest steel plant shut down last year, yielding to cheaper production in China. 
  • Its Huachipato steelworks, the country's largest, shut down its blast furnaces for good.
Chile's largest steel plant shut down last year, yielding to cheaper production in China. 
Now, six months later, the tariffs that President Donald Trump has imposed on US imports of the metal threaten the livelihood of 1.4 million workers in Latin America.
As he did during his first term in office from 2017 to 2021, Trump is trying to protect American producers by making steel imports costlier with a 25 percent tariff that kicked in on March 12.
The United States imports 25 million tons of steel each year, and Canada is it main supplier, followed by Brazil and Mexico, each with products tailored to other industries like car manufacturing and construction.
The United States relies on Latin America for specialized steel products, said Ezequiel Tavernelli, head of the Latin American Steel Association, Alacero.
With the world awash steel production overcapacity, and China the main offender, the Trump tariffs will distort the market.
"The only thing they will bring is a flood of steel" that had been headed to the United States and is now rerouted to regions that are less protected and have less ability to defend themselves, like Latin America, said Tavernelli.
To explain the threat he gives these figures: in 2000 China exported less than 100,000 tons of steel a year to Latin America, but today it is more than 14 million tons. The growth is exponential.
Steel production in Latin America has been falling for three years. And the Chinese share of what is consumed is getting bigger and bigger .
And now, due to the Trump tariffs Latin American producers will not only lose market share in the United States but also miss out in some markets of their own region due to Chinese competition.

When it rains it pours

The numbers are jarring. China accounts for more than 45 percent of the world's steel production capacity and produces 140 million tons it does not need. 
It dumps this excess cheaply on the international market, says Alacero, which says China produces 23 percent of the world's excess steel.
"The main problem of our region, and that of the United States, is world steel overcapacity," Tavernelli told AFP.
And China behaves disloyally, he argued, by selling steel below cost thanks to government subsidies.
In September of last year Chile endured what Tavernelli is talking about. Its Huachipato steelworks, the country's largest, shut down its blast furnaces for good.
With the smoke that drifted out of its chimneys went nearly 75 years of company history. Chinese steel was 40 percent cheaper and Huachipato simply could not compete.
Alacero argues that regionalization of supply chains -- for instance, US steel producers, car makers and construction companies buy Latin American steel -- "is the best way to defend against disloyal business by China and countries of Southeast Asia."
As Brazil's vice president Geraldo Alckmin, who is also the minister of development and industry, put it, the region's goal should be to achieve "economic complementarity." 
Brazil and Mexico are negotiating with the United States to try to win exemptions from the US tariffs, and managed to pull this off during Trump's first term in power.
In the same vein, Mexico's iron and steel producers association, Canacero, said last month there is a high level of production integration between the US and Mexican steel industries and regional benefits should be the priority in the face of the threat of excess capacity of China and Southeast Asia.
So there is the risk that more long-standing firms like Huachipato will have to shut down, said Tavernelli, who insisted the countries of Latin America have to work together.
bur-mr/dw/st

tariff

'Tariff man': Trump's long history with trade wars

  • He has since joked that it is now his fourth favorite word, after love, God and family -- but his commitment to them remains as strong as ever.
  • Donald Trump loves few things more than talking about his affinity for tariffs, but it's nothing new: he's been saying the same thing for decades.
  • He has since joked that it is now his fourth favorite word, after love, God and family -- but his commitment to them remains as strong as ever.
Donald Trump loves few things more than talking about his affinity for tariffs, but it's nothing new: he's been saying the same thing for decades.
"To me, the most beautiful word in the dictionary is 'tariff,'" Trump repeatedly said on the campaign trail for the 2024 election.
He has since joked that it is now his fourth favorite word, after love, God and family -- but his commitment to them remains as strong as ever.
The 78-year-old Republican has promised a "Liberation Day" for America on Wednesday when he announces sweeping "reciprocal" tariffs targeting any country that has import levies against US goods.
The sudden trade war has sent leading world economies scrambling -- yet anyone surprised by the onslaught has not been listening to Trump himself.
Other policies have come and gone, especially on hot-button issues such as abortion, but Trump's belief that America is being ripped off by the world has remained one of his core values.
So has his innate conviction that tariffs are the solution, despite arguments by opponents and many economists that US consumers will suffer when importers pass on increased prices.

'Ripping off'

"I am a Tariff Man," Trump declared in a social media post back in 2018 during his first presidential term.
In fact, Trump has been saying as much since the 1980s.
His main target then was Japan, as Trump -- best known in those days as a brash property dealer and tabloid fixture -- discussed getting into politics in an interview with CNN's Larry King.
"A lot of people are tired of watching other countries ripping off the United States," Trump said in 1987, using rhetoric that has changed little in the intervening 38 years. 
"Behind our backs, they laugh at us because of our own stupidity."
In a separate interview with chat show host Oprah Winfrey, he raged: "We let Japan come in and dump everything right into our markets."
By the 1990s and early 2000s, China entered his crosshairs, and Beijing remains one of his top tariff targets, along with Canada, Mexico and the European Union.
In his successful 2016 election campaign, Trump stepped up the rhetoric, saying: "We can't continue to allow China to rape our country." 

'Very rich'

During his second term, Trump has also started citing a historical precedent going back more than a century -- President William McKinley.
McKinley's passion for both territorial expansion and economic protectionism during his time in office from 1897 to 1901 could have been the model for Trump's "Make America Great Again" policies.
"President McKinley made our country very rich through tariffs and through talent -- he was a natural businessman," Trump said in his inauguration speech in January.
Trump's promises of a "Golden Age" harkens back to the so-called "Gilded Age" that culminated with McKinley's presidency, a time when America's population and economy exploded -- along with the power of oligarchs.
In addition to deploying tariffs, McKinley presided over a period of territorial adventurism for the United States, including the Spanish-American war and the purchases of Guam, Puerto Rico and the Philippines. 
Such moves echo Trump's own designs for Greenland, Panama and Canada.
The two also share the unwanted similarity of being struck by an assassin's bullet -- although Trump survived the attempt on his life at an election rally last July, while McKinley was killed by an anarchist in 1901.
dk/jgc

trade

Tariffs: Economic 'liberation' or straitjacket?

BY BEIYI SEOW

  • Trump has imposed tariffs on major trading partners Canada, Mexico and China since returning to the presidency while slapping fresh duties on steel and aluminum imports, with more to come on what he dubbed "Liberation Day" this Wednesday.
  • US President Donald Trump has made tariffs a cornerstone of his trade policy, insisting that they will revive American manufacturing while swelling government coffers.
  • Trump has imposed tariffs on major trading partners Canada, Mexico and China since returning to the presidency while slapping fresh duties on steel and aluminum imports, with more to come on what he dubbed "Liberation Day" this Wednesday.
US President Donald Trump has made tariffs a cornerstone of his trade policy, insisting that they will revive American manufacturing while swelling government coffers.
Critics argue that the levies will boost inflation in the near term and weigh on growth, triggering a trade war that could inflict serious damage on the United States and the wider global economy.
Trump has imposed tariffs on major trading partners Canada, Mexico and China since returning to the presidency while slapping fresh duties on steel and aluminum imports, with more to come on what he dubbed "Liberation Day" this Wednesday.

What are tariffs?

Tariffs are fees that importing businesses pay for their purchases of foreign goods.
When tariffs are imposed, companies must choose between forking out more for foreign goods -- and potentially passing those costs on to consumers -- or looking for alternatives.
The levies bring in revenue for governments imposing them and are commonly used to protect local companies and workers from competition abroad.
The charges can make domestic goods more cost-competitive, encouraging buyers to select local producers instead.

Arguments for

Trump's position is that with tariffs on key imports, companies will move more manufacturing to the United States -- or buy US-made products -- to avoid additional fees.
A commonly-used example is the "chicken tax" of the 1960s, when president Lyndon Johnson pushed back against European tariffs on American poultry with a levy on imported trucks.
Today, a 25 percent US tariff remains on light trucks and this is a key reason that most pick-up trucks sold in the country are built in North America.
The White House says new tariffs could also bring in more than $6 trillion in federal revenue over the next decade -- about $600 billion per year -- although it has yet to release its full plans.
While US-based companies generally pay the tariffs, White House officials have argued that foreign sellers would absorb the hike by lowering their prices as they seek to do business with the world's biggest economy.
Supporters of Trump's trade policy also say that tariffs did not cause widespread inflation during his first White House term.

Arguments against

But economists warn that tariff hikes can bring economic pain to affected sectors, and Trump's stop-start approach to announcing levies has sent financial markets tumbling.
If companies are unable to absorb additional fees and foreign sellers decline to lower their prices, the burden of tariffs could flow to other firms or consumers. 
Trump's 25 percent tariffs on autos and parts could cause the price of a typical car to surge by $5,000 to $10,000, said Wedbush analysts.
Even US automakers producing cars in the country use up to 50 percent of foreign auto parts, they said.
"It would take three years to move 10 percent of the auto supply chain to the US and cost hundreds of billions with much complexity and disruption," Wedbush added.
Nationwide chief economist Kathy Bostjancic estimates that recent tariffs on Chinese goods, alongside steel and aluminum imports, would raise construction material prices by up to nine percent.
Prices of appliances could also surge up to 15 percent, she said.
Trump's tariffs attract retaliation too, and countermeasures triggered more than $27 billion in US agricultural export losses from mid-2018 to late-2019.
The Tax Foundation said: "Based on actual revenue collections data, trade war tariffs have directly increased tax collections by $200 to $300 annually per US household, on average."
These estimates do not account for "lower incomes as tariffs shrink output, nor the loss in consumer choice" as buyers seek tariff-free alternatives, it added.
bys/mlm