International News 28 April 2025
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Effects of Tariff War, Corporations Change Targets
In the midst of trade wars and economic turbulence, companies from diverse sectors are adjusting their pricing structures, revising financial targets, and re-evaluating their performance expectations. Rising operating costs, disrupted supply chains, and global economic concerns are driving these actions. For instance, Procter & Gamble is considering increasing prices to cover additional costs due to tariffs. It is worth noting that other major companies, including PepsiCo, Thermo Fisher Scientific and American Airlines, have also reduced their profit forecasts. American Airlines did not provide financial guidance for 2025, while PepsiCo cited low consumer purchasing power. Nestlé, Unilever, Chipotle, and several other companies have expressed similar concerns. Over the past two weeks, approximately 30 global companies have revised or withdrawn their financial targets. Tesla has announced plans to review growth projections. The uncertainty surrounding trade policies is proving to be a significant challenge for companies worldwide, impacting their performance and growth.
https://internasional.kontan.co.id/news/efek-perang-tarif-korporasi-ubah-target
Softening! China Considers Tariff Exemptions for Some US Imported Goods
China is considering the possibility of exempting certain imported goods from the United States from tariffs, as a potential means of mitigating the economic impact of the ongoing trade war. The Chinese Ministry of Commerce has established a team to compile a list of goods that could be exempted, and companies have been asked to submit applications for goods that may qualify. Reports suggest that exemptions may be granted for certain semiconductor-related goods, excluding memory chips. The American Chamber of Commerce in China has confirmed that the Chinese government is requesting that companies identify goods imported from the US that are essential to their supply chain and cannot be sourced elsewhere. This move is widely interpreted as a clear indication that Beijing is taking the potential consequences of the trade war with Washington seriously.
Oil Prices Set to Record Weakness in a Week, Triggered by Potential Increase in Supply
The price of oil increased marginally on Friday, but is set to decrease on a weekly basis due to various factors impacting supply and demand. The potential increase in OPEC+ production and the possibility of a ceasefire in the Russia-Ukraine war could lead to a boost in supply, while mixed signals on US tariffs are affecting the demand outlook. Brent crude futures rose slightly to $66.60 per barrel, on track for a 2% weekly decline. In a similar vein, US West Texas Intermediate (WTI) crude oil prices increased marginally to $62.85 per barrel, though a 2.9% fall is anticipated for the week. A resolution to the Russia-Ukraine conflict could result in the easing of sanctions, which would allow more Russian oil to enter global markets.