Latest news with #Section232
Business Recorder
12 hours ago
- Business
- Business Recorder
Copper edges up as stronger yuan offsets tariff uncertainty
LONDON: Copper prices rose on Wednesday as a stronger yuan currency in top metals consumer China and weak dollar offset uncertainty about global trade tensions. Three-month copper on the London Metal Exchange was up 0.2% at $9,951 a metric ton by 1025 GMT. The metal, used in power and construction, started the second half of 2025 by testing the key psychological mark of $10,000 for the first time in three months on Tuesday as strong manufacturing data in top consumer China improved sentiment. This spike was also due to a persisting premium in U.S. copper futures amid expectations that copper would eventually be subject to the Section 232 import tariffs in the United States, assuming that the ongoing investigation will conclude that imports are threatening U.S. national security, said analyst Carsten Menke at Julius Baer. These expectations have caused a surge in U.S. copper imports this year, tightening the availability of the metal outside the U.S. and prompting the nearby LME copper contracts to trade at a premium over those with longer maturities. Goldman Sachs said in a note that it expects China's 2025 demand for refined copper to rise by 6% and sees upside risks to its August LME copper forecast of $10,050 as China and the U.S. compete for copper. Copper inches up on weaker dollar; investors watch US trade talks In the longer term, Julius Baer expects the global copper market to be sufficiently supplied this year and is concerned about the demand outlook due to pre-buying from U.S. importers. Meanwhile, the U.S. dollar languished near its lowest since February 2022 on Wednesday as traders considered the potential impact of President Donald Trump's spending bill, and looming trade tariff deadlines. The yuan was near an eight-month high against the dollar amid hopes for an easing of U.S.-China trade tensions. LME aluminium fell 0.2% to $2,593.50 a ton, zinc rose 0.4% to $2,725.50, lead climbed 0.4% to $2,046.50, tin lost 0.6% to $33,430 and nickel gained 0.1% to $15,220.
IOL News
17 hours ago
- Automotive
- IOL News
South Africa's automotive industry braces for potential US export tariffs
The Automobile Business Council (Naamsa) on Tuesday said vehicle exports increased by 2 647 units year-on-year to 36 343 units exported in June from the 33 696 units exported during the same month last year Image: Supplied South Africa's automotive industry has expressed anxiety about the potential impact of the impending export tariffs from the United States after vehicle exports rose by 7.9% in June, despite the growing toll of geopolitical and trade-related disruptions. The Automobile Business Council (Naamsa) on Tuesday said vehicle exports increased by 2 647 units year-on-year to 36 343 units exported in June from the 33 696 units exported during the same month last year. The automotive industry contributes 5.2% to South Africa's gross domestic product (GDP), 3.2% in manufacturing and 2.01% retail. In 2024, the export of vehicles and automotive components reached a record amount of R268.8 billion, equating to 14.7% of South Africa's total exports. Vehicles and components are exported to 155 international markets. However, Naamsa noted with anxiety that trade-related uncertainty looms large as the 90-day reciprocal trade reprieve extended by the US is scheduled to expire next week. Naamsa CEO Mikel Mabasa said that while the reprieve did not explicitly apply to Section 232 tariffs on automotive products, it formed part of the broader negotiation framework that will be critical in determining South Africa's continued preferential access to the US market. As such, Mabasa said ongoing engagement and negotiation over automotive exports will be vital to protect the sector's long-term trade position and export earnings. 'South Africa's automotive industry has long relied on a thriving export engine to sustain production volumes and attract investment,' Mabasa said. 'However, the current trade policy shifts, particularly from the United States, pose a real challenge to this model. To address this, our response must be strategic: diversifying markets, expanding regional trade, and continuing to advocate for fair and rules-based global trade systems.' According to data from Naamsa, the new vehicle sales demonstrated unwavering domestic momentum in the first half of 2025, closing this period strong. Aggregate new vehicle sales climbed once again by 18.7% or 7 444 to reach 47 294 units in June from the 39 850 units sold in June 2024 - reflecting a sustained and broad-based recovery in consumer and fleet demand. This was in line with Naamsa's earlier projection for a robust domestic performance in the first half of 2025. For the first half of the year new vehicle sales were now 13.6% ahead of the corresponding period 2024, supported by and large by an influx of affordable imported models. For the year-to-date [January to May 2025], Naamsa said new light vehicle imports by the Original Equipment Manufacturers (OEMs) increased by 25.6% and by the independent importers by 33.4% compared to the corresponding period 2024. Brandon Cohen, national chairperson of the National Automobile Dealers' Association, said the majority of the growth was centred in the sub-R400 000 segment. 'This price point remains critical for volume, affordability and trade-ins, with a direct knock-on effect on pre-owned sales performance. The used vehicle market is benefiting from improved affordability metrics, driven by softened interest rates, favourable vehicle pricing, and the rollout of the two-pot retirement savings reform,' Cohen said. The upbeat performance in domestic new vehicle sales builds on gains since the fourth quarter of 2024. Mabasa said this success was underpinned by a combination of favourable economic fundamentals. These include decreasing interest rates following the South African Reserve Bank's further 25 basis points cut in May, a still-benign inflation backdrop, and improved credit access across the market. 'The first half of 2025 has shown just how resilient and responsive our domestic market truly is. Strong consumer demand, supported by positive economic fundamentals, has helped the automotive sector deliver impressive growth amid global turbulence,' Mabasa said. However, the current market is only 1.5% ahead and 2024 volumes were 14% lower in the same month compared to June 2023.
Yahoo
5 days ago
- Automotive
- Yahoo
UK vehicle production down by a third in May, as US tariffs hit
UK car and commercial vehicle production fell for the fifth consecutive month in May, down 32.8% to 49,810 units, according to the latest figures published by the Society of Motor Manufacturers and Traders (SMMT). Excluding 2020, when Covid lockdowns saw factories shuttered or running at greatly reduced capacity, it was the lowest performance for the month since 1949. Year to date, total output is down 12.9% on 2024, to 348,226, the lowest since 1953. Car production declined by 31.5% in the month. The SMMT said the result was 'due primarily to ongoing model changeovers, restructuring and the impact of US tariffs'. Commercial vehicle output was also down sharply, by 53.6% to 2,087 units, as the closure of one of the UK's CV plants continues to impact comparisons with last year. Car production for export fell by 27.8%, although a 42.1% fall in output for the smaller domestic market meant exports comprised a larger share of production, up to 78.5%. Shipments to the EU and US, the UK's two largest markets, fell by 22.5% and 55.4% respectively with the US share of exports declining from 18.2% to 11.3%. This was in large part due to the imposition by the US administration of supplementary 25% Section 232 tariffs on cars from March which depressed demand instantly, forcing many manufacturers to stop shipments. However, with the trade agreement negotiated by government due to come into effect before the end of June, this should 'hopefully be a short-lived constraint', the SMMT said. Declines were also recorded in exports to China and Turkey, down 11.5% and 51.0% respectively. Export volumes of vans, buses, coaches, taxis and trucks also declined in May, down by 71.7% year on year. The EU remained overwhelmingly the sector's biggest customer, accounting for 94.7% of exports, although volumes fell -72.1%. As a result, the export share of overall commercial vehicle production fell from 67.9% to 41.4%, with the domestic market now the primary destination for UK commercial vehicle output.3 Mike Hawes, SMMT Chief Executive, said: 'While 2025 has proved to be an incredibly challenging year for UK automotive production, there is the beginning of some optimism for the future. 'Confirmed trade deals with crucial markets, especially the US and a more positive relationship with the EU, as well as government strategies on industry and trade that recognise the critical role the sector plays in driving economic growth, should help recovery. With rapid implementation, particularly on the energy costs constraining our competitiveness, the UK can deliver the jobs, growth and decarbonisation that is desperately needed.' "UK vehicle production down by a third in May, as US tariffs hit " was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Time of India
6 days ago
- Business
- Time of India
Trump's threat of more tariffs makes US trade partners wary of signing deals
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tariff negotiations with the Trump administration are running into roadblocks, as partners including Japan, India and the European Union balk at signing deals without knowing how badly they'll be hit by separate levies on exports including chips, drugs and US Commerce Department is set within weeks to announce the outcomes of its investigations into sectors deemed vital to national security, including semiconductors, pharmaceuticals and critical minerals. The probes are widely expected to result in levies applied under Section 232 of the Trade Expansion Act on a range of foreign-made products in those is, governments seeking agreements to whittle down country-by-country tariffs President Donald Trump announced on April 2, and then suspended till July 9, have no idea where those sectoral levies will land. For many, industry-specific tariffs may be more damaging than the broader levies.'Imagine you're a Vietnam or Japan or Korea, and you've just agreed to some potentially painful compromises on reciprocal tariffs, and the very next day after this is announced, they turn around and levy new 232s against you,' said Deborah Elms, head of trade policy at the Hinrich Foundation. 'The last thing you want is to agree to a deal only to be hammered the next day.'A cautionary tale for many countries is the partial deal Britain accepted. That pact left key details about bilateral steel trade subject to further negotiation on a quota system and stronger origin requirements. In the meantime, the Trump's tariffs of UK steel remain at 25% — failing to meet the British government's goal of lowering them to zero.'There is no clarity in how all of these tariffs would interplay, which is also causing major concerns among our partners,' said Wendy Cutler, a former senior US trade negotiator who's now vice president of the Asia Society Policy UK framework showed there is some wiggle room with the US on sectoral tariffs, but other nations should not view it as a template for their own negotiations, according to a White House official. The 232 tariffs are meant to reshore manufacturing of goods viewed as critical to national security, which is separate from the aims of the April 2 tariffs, the official the difficulties for many countries is understanding how the Trump administration can at times view the tariffs — and the threat of them — in a transactional Commerce Secretary Howard Lutnick, testifying before the Senate earlier this month, gave an example of how 232 tariffs could be used in negotiations to induce commercial deals. Part of the UK's deal was no American tariffs on aerospace products — which are subject to a pending 232 investigation.'In exchange for us doing a zero tariff — I mean think of Donald Trump — he then gets an agreement by British Airways to buy $10 billion,' Lutnick said. 'They were competing with Airbus, and in part of that agreement, they committed to buying Boeing aircraft of $10 billion.'Lutnick added that 'if other countries play ball with us, I would expect that's an offer we make provided they're buying our aircraft.'For the EU, which is already getting hit hard by 25% auto tariffs and 50% on steel, talks around the sectoral levies have made less progress and are unlikely to be solved before July 9, according to people familiar with the in Brussels see an agreement on broad principles to allow negotiations to continue as the best-case scenario at this stage in the EU-US talks, the people is keen on settling all potential US tariffs — from duties on cars, auto parts and metals to Trump's country-specific levies – in one go. But a sticking point in negotiations has been the 25% tariffs on cars and car parts imposed by the Trump is focused on autos because it's the sector that's responsible for most of its trade deficit with Japan. But Tokyo sees that industry as a key economic pillar, since it employs about 8.3% of Japan's workforce and generates around 10% of gross domestic product.'For Japan, automobiles are truly a matter of national interest. We will do whatever it takes to protect that,' Japanese Prime Minister Shigeru Ishiba told reporters in Canada earlier this month, shortly after he failed to reach a deal with Trump in their in-person meeting on the sidelines of the Group of Seven hand-picked trade negotiator, Ryosei Akazawa, has said Japan won't fixate on the July 9 tariff deadline as he continues talks with his US counterparts. Akazawa has said he expects a deal with the US will spare Japan from higher auto tariffs, even if Trump increases them against other has dug in its heels on the issue and is unwilling to sign a trade deal with Washington that doesn't address both sectoral and reciprocal tariffs for its exports, people familiar with the matter it comes to potential sectoral tariffs, Indian officials are pushing for a commitment from Washington that any deal matches the best agreement offered to any other nation it's in talks with, they deal with the US has to be defensible in the eyes of domestic stakeholders and the US insistence on retaining these additional levies will render Indian producers uncompetitive, the people said, requesting anonymity to disclose private officials are also reluctant to sign a tariff deal amid uncertainty over their legality after a US federal court deemed illegal last month, the people said. A higher court later gave Trump a temporary reprieve of that the legal uncertainty, some Trump administration officials believe the 232 levies could effectively supplant the country-by-country duties, Bloomberg News has tariffs on steel and aluminium, automobiles and the expected levies on pharmaceuticals have raised concerns among Indian exporters that have been urging the government to not ink a deal that will adversely impact their shipments. Exporters say the US move to raise levies on metals and autos are a huge setback for them.'These duties impact India's engineering exports to the US, which are valued at over $20 billion annually,' said Pankaj Chadha, chairman of Engineering Exports Promotion Council. 'We hope that these sectoral tariffs will be suitably addressed in the bilateral trade agreement.
Korea Herald
6 days ago
- Automotive
- Korea Herald
US sets process to expand auto parts subject to 25% tariffs
The US Commerce Department has established a process to include more imported automobile parts in the list of those subject to 25 percent tariffs, its release showed Thursday, a move that could affect South Korea's auto part industry. This week, the department's International Trade Administration outlined the process by which US domestic producers may request additional auto parts to be included in the scope of the new tariffs on automobile parts that took effect on May 3. To receive requests from US producers of auto parts, ITA is establishing two-week submission windows held four times a year -- each January, April, July, and October, with the first window opening on July 1. It plans to review received requests on a rolling basis during the two-week submission window. Following the two-week submission window, a non-confidential version of each valid request will be published and open for public comment for 14 days, according to ITA. ITA plans to make a determination within 60 days of receiving the request. The items subject to the current tariffs on auto parts include engines, transmissions, powertrain parts and electrical components. "This program will strengthen the objectives of Section 232 tariffs to protect critical US national security interests related to automobiles and automobile parts," ITA said in a press release. To impose the tariffs on automobiles and certain parts, Trump invoked Section 232 of the Trade Expansion Act of 1962 -- a statute that provides the president with authority to adjust imports into the United States when he determines they threaten to impair national security. The Trump administration has expanded the scope of its Section 232 tariffs in a way that affects the South Korean industry. Earlier this month, it announced a decision to add refrigerators, washing machines, dryers and other items to the list of derivatives subject to a 50 percent steel tariff, noting that the tariff will be assessed on those products based on the value of the steel content in each. (Yonhap)
