International News 05 March 2025
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PM Trudeau: Canada's Retaliatory Tariffs on US Goods to Begin Tuesday (4/3)
Canadian Prime Minister Justin Trudeau has announced that Canada will impose a 25% tariff on $155 billion (C$155 billion) worth of US goods in the event of the Trump administration proceeding with its proposed tariffs on Canadian goods. The initial tariffs of 25% on $30 billion (C$30 billion) worth of US goods will take effect immediately, and additional tariffs on $125 billion (C$125 billion) worth of products will be implemented in 21 days. Trudeau emphasised that these tariffs will remain in place until the US trade actions are withdrawn. He also mentioned that Canada is actively engaged in discussions with regional authorities to explore non-tariff measures if the US tariffs persist.
Trump's Tariff Policy Worsens Global Ocean Shipping Industry
The global ocean shipping industry, which is responsible for 80% of world trade, is facing significant uncertainty due to tariff policies and geopolitical tensions fuelled by the US President, Donald Trump.This was the focus of the S&P Global TPM conference, which discussed container shipping contracts and supply chains. Key industry players, including MSC, Maersk, and Hapag-Lloyd, as well as companies like Walmart and logistics firms like DSV and DHL, are grappling with the consequences of increased protectionism.These policies have the potential to reduce international trade and weaken the negotiating power of large container ship owners, who have been enjoying high profits. Tariffs have been imposed by the Trump administration on Chinese goods, port entry fees for Chinese-made ships have been proposed, and further tariffs on imports from Mexico and the European Union may be introduced. The industry is navigating a period of unprecedented uncertainty, due to tariffs and disruptions in global supply chains.
OPEC+ prepares to cut production, oil prices fall to lowest level in 12 weeks
Oil prices have fallen to their lowest point in 12 weeks, dropping by around 2% due to concerns that OPEC+ will proceed with its planned oil output increase in April and fears that US tariffs could negatively impact global economic growth and oil demand. The price of Brent crude oil fell to $71.62 per barrel, the lowest since 6 December, while US West Texas Intermediate (WTI) crude oil fell to $68.37 per barrel, the lowest since 9 December.The decision by OPEC+ to continue increasing oil output may put further pressure on prices, and other factors, such as US manufacturing data, peace talks in Ukraine, and US tariffs, contribute to the vulnerability of crude oil prices.