Latest news on trade tariffs
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GE Appliance reshores some production to Kentucky
GE Appliance reshores some production to Kentucky
Pittsburgh, 27 June (Argus) — GE Appliances plans to reshore some of its production of clothes washers from China to the US, as home appliances have become ensnared in the White House's lofty steel tariff import scheme. The company, a subsidiary of Chinese-based home appliance manufacturer Haier, said it will invest $490mn to build a new clothes washer manufacturing plant at its headquarters in Louisville, Kentucky. The investment will allow the company to move the production of more than 15 models of its front loading washers from China to its Louisville-based Appliance Park manufacturing hub. The plant will include in-house manufacturing of critical parts such as stainless-steel baskets and cabinets, high-precision metal stamping and forming, and injection-molding and production equipment. GE Appliances said it expects the new manufacturing lines to be open in 2027 and estimated that the investment will create 800 jobs. The "current economic and policy environment" in the US drove the decision to reshore production, as well as its strategy to make its products as close as possible to is customers, the company said. Home appliances came under increased government scrutiny this month, after the US Commerce Department broadened its 50pc steel import tariffs on 23 June to include most common home appliances. The tariffs are based on the portion of steel in each appliance. The US imported 3.1mn laundry machines so far this year through April, up by 10pc from the prior year, according to customs data. Mexico was the largest single source of these appliances during this period, at 39pc of all imports, while China was the second largest source at 19pc. By Brad MacAulay Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Mexico’s trade balance swings to surplus in May
Mexico’s trade balance swings to surplus in May
Mexico City, 26 June (Argus) — Mexico's trade balance returned to surplus territory in May, as higher crude export volumes helped to offset drags on manufacturing from US tariffs. Mexico recorded a $1.03bn trade surplus in May, statistics agency Inegi reported Thursday, swinging from a $88mn deficit the previous month. Total exports in May were valued at $55.5bn, while imports reached $54.4bn. The surplus was wider than Mexican bank Banorte's forecast of $279mn. The balance reflects the trade deficit in oil-related products narrowing to $2.11bn in May from $2.87bn in April, as well as a rebounding surplus in non-oil trade to $3.14bn from $2.78bn in April. Mexico ran a $2.04bn trade surplus for the January-May period, including a $10.96bn surplus in non-oil trade and a $8.92bn deficit in oil-related trade. This reflects the longer-term trend of growing non-oil exports set against widening deficits of oil-related goods. Manufacturing exports — especially autos — have been the most affected by US tariffs enacted in March and April. Despite US exemptions tied to trade treaties, Mexico still faces an average effective US tariff rate of 11.9pc — the eighth highest globally and the highest in the western hemisphere, according to Fitch Ratings. The auto industry is also participating in negotiations to soften steel and aluminum tariffs to prevent further supply chain disruptions. Manufacturing exports fell by 0.6pc in May after a 0.7pc drop in April. Auto exports declined by 1.3pc in May, following a 4.8pc fall in April. Inegi reported a 10.3pc annual drop in the value of auto exports to the US in May, after an 8pc decline in April. Exports had surged 6.5pc in March as companies rushed shipments ahead of tariff implementation. Agricultural exports contracted by 2.6pc in May from the previous month after rising 2pc in April, while non-oil mining exports contracted 2.9pc after surging 26pc in April. Oil-related exports totaled $2.06bn in May — $1.33bn in crude and $722mn in refined products — compared with $1.83bn in crude alone in April. This comes despite a stronger peso and lower oil prices. Mexico's crude export mix averaged $57.88/bl in May, down $2.94/bl from April and $16.51/bl below the year-earlier level. Crude export volumes rose to 743,000 b/d from 693,000 b/d in April but remained below the 930,000 b/d exported in May 2024. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US Fed sees 2 rate cuts in '25, eyes tariffs: Update
US Fed sees 2 rate cuts in '25, eyes tariffs: Update
Adds Powell comments, economic backdrop. Houston, 18 June (Argus) — US Federal Reserve policymakers kept the target interest rate unchanged today and signaled two quarter-point cuts are still likely this year while downgrading forecasts for the US economy in the face of largely tariff-driven uncertainty. The Fed's Federal Open Market Committee (FOMC) held the federal funds rate unchanged at 4.25-4.50pc, in the fourth meeting of 2025. This followed rate cuts of 100 basis points over the last three meetings of 2024, which lowered the target rate from more than two-decade highs. In the Fed's first release of updated economic projections since President Donald Trump's 2 April "Liberation Day" announcement of far-ranging tariffs, policymakers continued to pencil in two quarter-point rate cuts for the remainder of the year. "Changes to trade, immigration, fiscal and regulatory policies continue to evolve and their effects on the economy remain uncertain," Fed chair Jerome Powell told reporters after the meeting. "Today, the amount of the tariff effects — the size of the tariff effects, their duration and the time it will take, are all highly uncertain. So that is why we think the appropriate thing to do is to hold where we are as we learn more." Policymakers and Fed officials Wednesday lowered their median estimate for GDP growth this year to 1.4pc from a prior estimate of 1.7pc in the March economic outlook. They see inflation rising to a median 3pc for 2025 from the prior estimate of 2.7pc, with unemployment rising to 4.5pc from 4.4pc in the prior forecast. Economists have warned that Trump's erratic use of tariffs and plans to raise the national debt, along with mounting geopolitical risk highlighted by the latest Israel-Iran clashes, threaten to throw the economy into a recession or marked slowdown. Consumer confidence has tumbled and financial markets have been volatile while the dollar has slumped to three-year lows. Still, the labor market and inflation — the two pillars of the Fed's policy mandate — have remained relatively stable into the fifth month of Trump's administration. "As long as the economy is solid, as long as we're seeing the kind of labor market that we have and reasonably decent growth, and inflation moving down, we feel like the right thing to do is to be where we are, where our policy stance is and learn more," Powell said. US job growth slowed to 139,000 in May, near the average gain of 149,000 over the prior 12 months and unemployment has remained in a range of 4-4.2pc since May 2024. Consumer inflation was at an annual 2.4pc in May, down from 3pc in January. US GDP growth contracted by an annual 0.2pc in the first quarter, largely due to an increase in imports on pre-tariff stockpiling, down from 2.4pc in the fourth quarter and the lowest in three years. "What we're waiting for to reduce rates is to understand what will happen with the tariff inflation," Powell said. "And there's a lot of uncertainty about that. Every forecaster you can name who is a professional is forecasting a meaningful increase in inflation in coming months from tariffs because someone has to pay for the tariffs." Before Wednesday's FOMC announcement, Trump made a rambling attack on the Fed's policy under Powell, in remarks to reporters at the White House. "I call him 'too late Powell', because he's always too late" in lowering rates. "Am I allowed to appoint myself at the Fed? I do a much better job than these people." Powell's term in office as Fed chair expires in May 2026. Powell declined to directly address Trump's comments. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US Fed keeps rate flat, still eyes 2 cuts in 2025
US Fed keeps rate flat, still eyes 2 cuts in 2025
Houston, 18 June (Argus) — US Federal Reserve policymakers kept the target interest rate unchanged today and signaled two quarter-point cuts are still likely this year. The Fed's Federal Open Market Committee (FOMC) held the federal funds rate unchanged at 4.25-4.50pc, in the fourth meeting of 2025. This followed rate cuts of 100 basis points over the last three meetings of 2024, which lowered the target rate from more than two-decade highs. In the Fed's first release of updated economic projections since President Donald Trump's 2 April "Liberation Day" announcement of far-ranging tariffs, policymakers continued to pencil in two quarter-point rate cuts for the remainder of the year. Policymakers and Fed officials Wednesday lowered their estimate for GDP growth this year to 1.4pc from a prior estimate of 1.7pc in the March economic outlook. They see inflation rising to 3pc for 2025 from the prior estimate of 2.7pc, with unemployment rising to 4.5pc from 4.4pc in the prior forecast. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Mexico’s trade balance swings to surplus in May
Mexico’s trade balance swings to surplus in May
Mexico City, 26 June (Argus) — Mexico's trade balance returned to surplus territory in May, as higher crude export volumes helped to offset drags on manufacturing from US tariffs. Mexico recorded a $1.03bn trade surplus in May, statistics agency Inegi reported Thursday, swinging from a $88mn deficit the previous month. Total exports in May were valued at $55.5bn, while imports reached $54.4bn. The surplus was wider than Mexican bank Banorte's forecast of $279mn. The balance reflects the trade deficit in oil-related products narrowing to $2.11bn in May from $2.87bn in April, as well as a rebounding surplus in non-oil trade to $3.14bn from $2.78bn in April. Mexico ran a $2.04bn trade surplus for the January-May period, including a $10.96bn surplus in non-oil trade and a $8.92bn deficit in oil-related trade. This reflects the longer-term trend of growing non-oil exports set against widening deficits of oil-related goods. Manufacturing exports — especially autos — have been the most affected by US tariffs enacted in March and April. Despite US exemptions tied to trade treaties, Mexico still faces an average effective US tariff rate of 11.9pc — the eighth highest globally and the highest in the western hemisphere, according to Fitch Ratings. The auto industry is also participating in negotiations to soften steel and aluminum tariffs to prevent further supply chain disruptions. Manufacturing exports fell by 0.6pc in May after a 0.7pc drop in April. Auto exports declined by 1.3pc in May, following a 4.8pc fall in April. Inegi reported a 10.3pc annual drop in the value of auto exports to the US in May, after an 8pc decline in April. Exports had surged 6.5pc in March as companies rushed shipments ahead of tariff implementation. Agricultural exports contracted by 2.6pc in May from the previous month after rising 2pc in April, while non-oil mining exports contracted 2.9pc after surging 26pc in April. Oil-related exports totaled $2.06bn in May — $1.33bn in crude and $722mn in refined products — compared with $1.83bn in crude alone in April. This comes despite a stronger peso and lower oil prices. Mexico's crude export mix averaged $57.88/bl in May, down $2.94/bl from April and $16.51/bl below the year-earlier level. Crude export volumes rose to 743,000 b/d from 693,000 b/d in April but remained below the 930,000 b/d exported in May 2024. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US Fed sees 2 rate cuts in '25, eyes tariffs: Update
US Fed sees 2 rate cuts in '25, eyes tariffs: Update
Adds Powell comments, economic backdrop. Houston, 18 June (Argus) — US Federal Reserve policymakers kept the target interest rate unchanged today and signaled two quarter-point cuts are still likely this year while downgrading forecasts for the US economy in the face of largely tariff-driven uncertainty. The Fed's Federal Open Market Committee (FOMC) held the federal funds rate unchanged at 4.25-4.50pc, in the fourth meeting of 2025. This followed rate cuts of 100 basis points over the last three meetings of 2024, which lowered the target rate from more than two-decade highs. In the Fed's first release of updated economic projections since President Donald Trump's 2 April "Liberation Day" announcement of far-ranging tariffs, policymakers continued to pencil in two quarter-point rate cuts for the remainder of the year. "Changes to trade, immigration, fiscal and regulatory policies continue to evolve and their effects on the economy remain uncertain," Fed chair Jerome Powell told reporters after the meeting. "Today, the amount of the tariff effects — the size of the tariff effects, their duration and the time it will take, are all highly uncertain. So that is why we think the appropriate thing to do is to hold where we are as we learn more." Policymakers and Fed officials Wednesday lowered their median estimate for GDP growth this year to 1.4pc from a prior estimate of 1.7pc in the March economic outlook. They see inflation rising to a median 3pc for 2025 from the prior estimate of 2.7pc, with unemployment rising to 4.5pc from 4.4pc in the prior forecast. Economists have warned that Trump's erratic use of tariffs and plans to raise the national debt, along with mounting geopolitical risk highlighted by the latest Israel-Iran clashes, threaten to throw the economy into a recession or marked slowdown. Consumer confidence has tumbled and financial markets have been volatile while the dollar has slumped to three-year lows. Still, the labor market and inflation — the two pillars of the Fed's policy mandate — have remained relatively stable into the fifth month of Trump's administration. "As long as the economy is solid, as long as we're seeing the kind of labor market that we have and reasonably decent growth, and inflation moving down, we feel like the right thing to do is to be where we are, where our policy stance is and learn more," Powell said. US job growth slowed to 139,000 in May, near the average gain of 149,000 over the prior 12 months and unemployment has remained in a range of 4-4.2pc since May 2024. Consumer inflation was at an annual 2.4pc in May, down from 3pc in January. US GDP growth contracted by an annual 0.2pc in the first quarter, largely due to an increase in imports on pre-tariff stockpiling, down from 2.4pc in the fourth quarter and the lowest in three years. "What we're waiting for to reduce rates is to understand what will happen with the tariff inflation," Powell said. "And there's a lot of uncertainty about that. Every forecaster you can name who is a professional is forecasting a meaningful increase in inflation in coming months from tariffs because someone has to pay for the tariffs." Before Wednesday's FOMC announcement, Trump made a rambling attack on the Fed's policy under Powell, in remarks to reporters at the White House. "I call him 'too late Powell', because he's always too late" in lowering rates. "Am I allowed to appoint myself at the Fed? I do a much better job than these people." Powell's term in office as Fed chair expires in May 2026. Powell declined to directly address Trump's comments. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US Fed keeps rate flat, still eyes 2 cuts in 2025
US Fed keeps rate flat, still eyes 2 cuts in 2025
Houston, 18 June (Argus) — US Federal Reserve policymakers kept the target interest rate unchanged today and signaled two quarter-point cuts are still likely this year. The Fed's Federal Open Market Committee (FOMC) held the federal funds rate unchanged at 4.25-4.50pc, in the fourth meeting of 2025. This followed rate cuts of 100 basis points over the last three meetings of 2024, which lowered the target rate from more than two-decade highs. In the Fed's first release of updated economic projections since President Donald Trump's 2 April "Liberation Day" announcement of far-ranging tariffs, policymakers continued to pencil in two quarter-point rate cuts for the remainder of the year. Policymakers and Fed officials Wednesday lowered their estimate for GDP growth this year to 1.4pc from a prior estimate of 1.7pc in the March economic outlook. They see inflation rising to 3pc for 2025 from the prior estimate of 2.7pc, with unemployment rising to 4.5pc from 4.4pc in the prior forecast. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Mexican president floats 'general agreement' with US
Mexican president floats 'general agreement' with US
Mexico City, 18 June (Argus) — Mexico's president Claudia Sheinbaum said she proposed to US president Donald Trump that their countries could sign a "general agreement" on key cross-border problems, suggesting the deal could be made before the US, Mexico and Canada free trade agreement (USMCA) is renegotiated. The presidents were set to meet this week at the G7 summit in Canada, but Trump left early and had a "good call" with Sheinbaum on the phone instead, Sheinbaum and the White House said. Sheinbaum said today she proposed Mexico and the US sign a single agreement on cross-border security, including drugs crossing into the US, migration and commerce — topics Trump flagged as major issues between the countries. Mexico has mostly managed to steer clear of Trump's on-again/off-again trade action , but has not been able to convince Trump to remove steep import tariffs on steel, aluminum and automotive parts. Sheinbaum previously said she hoped to get Trump to remove these tariffs by addressing security and migration issues while getting support from the US to stem the flow of arms into Mexico. Trump on Monday described ongoing trade negotiations as an easy process. "We are dealing with really, if you think about it, probably 175 countries, and most of them can just be sent a letter saying, 'It will be an honor to trade with you, and here's what you're going to have to pay to do'", Trump said. But that same day he pushed back on calls from Canada and the EU to negotiate trade deals, arguing that their approach is too complicated. "You get too complex on the deals and they never get done," Trump said. Canada and the US also aim to strike a trade deal within 30 days, Canadian prime minister Mark Carney said on Monday after meeting with Trump. Trump has been pushing Mexico into an early renegotiation of the USMCA. But the talks with Canada and the call with Mexico suggest Trump could finalize separate deals with Mexico and Canada before the USMCA's renegotiations are finished. By Cas Biekmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Mexican president floats 'general agreement' with US
Mexican president floats 'general agreement' with US
Mexico City, 18 June (Argus) — Mexico's president Claudia Sheinbaum said she proposed to US president Donald Trump that their countries could sign a "general agreement" on key cross-border problems, suggesting the deal could be made before the US, Mexico and Canada free trade agreement (USMCA) is renegotiated. The presidents were set to meet this week at the G7 summit in Canada, but Trump left early and had a "good call" with Sheinbaum on the phone instead, Sheinbaum and the White House said. Sheinbaum said today she proposed Mexico and the US sign a single agreement on cross-border security, including drugs crossing into the US, migration and commerce — topics Trump flagged as major issues between the countries. Mexico has mostly managed to steer clear of Trump's on-again/off-again trade action , but has not been able to convince Trump to remove steep import tariffs on steel, aluminum and automotive parts. Sheinbaum previously said she hoped to get Trump to remove these tariffs by addressing security and migration issues while getting support from the US to stem the flow of arms into Mexico. Trump on Monday described ongoing trade negotiations as an easy process. "We are dealing with really, if you think about it, probably 175 countries, and most of them can just be sent a letter saying, 'It will be an honor to trade with you, and here's what you're going to have to pay to do'", Trump said. But that same day he pushed back on calls from Canada and the EU to negotiate trade deals, arguing that their approach is too complicated. "You get too complex on the deals and they never get done," Trump said. Canada and the US also aim to strike a trade deal within 30 days, Canadian prime minister Mark Carney said on Monday after meeting with Trump. Trump has been pushing Mexico into an early renegotiation of the USMCA. But the talks with Canada and the call with Mexico suggest Trump could finalize separate deals with Mexico and Canada before the USMCA's renegotiations are finished. By Cas Biekmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US manufacturing contracts for 3rd month in May
US manufacturing contracts for 3rd month in May
Houston, 2 June (Argus) — US manufacturing activity contracted in May for a third consecutive month, as new orders and production continued to shrink and exports and imports plunged as President Donald Trump's "ever-changing" tariff policies are scrambling trade flows. The Institute for Supply Management's (ISM) manufacturing purchasing manager's index (PMI) released today fell to 48.5 in May, down from 48.7 in April, suggesting deepening contraction in the factory sector. Readings below 50 signal contraction while those above that threshold mark expansion. The three-month contraction follows two months of slim factory expansion after 26 months of contraction. The new orders index for manufacturers rose by 0.4 percentage points to 47.6, signaling an easing contraction in activity, the survey showed on Monday. The production index rose by 1.4 points to 45.4, still in contraction territory for a third month. The new export order index fell by three points to 40.1, while the imports index fell by 7.2 points to 39.9, showing "extreme contraction." "The rate of decrease for the new export orders index continues to be the fastest since the coronavirus pandemic, and excluding Covid-19, the reading is the lowest since the Great Recession," ISM said. "Imports continue to contract as demand has reduced the need to maintain import levels from previous months, as well as due to the impact of tariff pricing," the report said. The inventory index fell by 4.1 points to 46.7, entering contraction and showing the "pull forward of materials by companies to minimize the financial impacts of tariffs is largely completed." The prices index came in at 69.4 in May, down from 0.4 points, signaling a slowing expansion in prices. "There is continued softening of demand in the commercial vehicle market, primarily related to higher prices and economic uncertainty," a transportation vehicle executive said in the survey. "The impact of ever-changing trade policies of the current administration has wreaked havoc on suppliers' ability to react and remain profitable." Despite the weakness in manufacturing, services activity — the largest part of the US economy — is expected to show expansion at 52 for the month, according to economists surveyed by Trading Economics ahead of that ISM report expected on Wednesday. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US tariff ruling placed on hold during appeal: Update 2
US tariff ruling placed on hold during appeal: Update 2
Updates with changes throughout Washington, 29 May (Argus) — A federal appeals court has temporarily suspended a trade court ruling issued late Wednesday that would have blocked emergency tariffs that President Donald Trump has placed on nearly all imports into the US. The US Court of Appeals for the Federal Circuit, in a four-page order issued today, agreed to place an immediate administrative stay on the ruling until it can consider requests by the Trump administration to suspend the tariff ruling during an appeal. The decision to suspend the tariff ruling — which would permanently enjoin tariffs now set at 10pc for much of the world and 30pc for China — comes as the White House was considering asking the US Supreme Court to intervene if the sweeping tariff ruling was not quickly placed on hold. The latest court order will mean that Trump's emergency tariffs on most of the world will remain in place, at least temporarily. The US Court of International Trade, in the initial ruling on Wednesday, found that Trump's tariffs were unlawful and ordered the administration to rescind them within 10 calendar days. If that ruling is eventually upheld, any of the tariffs collected over the last four months would be refunded. The appeals court has ordered the plaintiffs in the case to file a response to the administration's stay request by 5 June, with the Trump administration filing a reply by 9 June. Trump began imposing the tariffs at issue in the case under the International Emergency Economic Powers Act (IEEPA) weeks into his second term, starting with a 25pc tariff from Canada and Mexico and a 10pc incremental tariff on China that he said were based on the threat of drug trafficking. Trump vastly expanded his use of tariffs on "Liberation Day" on 2 April on nearly every country, based on an alleged "emergency" of trade imbalances, raising tariffs to as high as 145pc on China before lowering them to 30pc. But a three-judge panel on the Court of International Trade on Wednesday said all of those tariffs were unlawful because the IEEPA does not offer "unbounded" authority to put unlimited tariffs on nearly all imported goods. In a separate ruling issued today, the US District Court for the District of Columbia separately ruled that IEEPA did not support the tariffs, but that decision will only apply to two small toy companies that filed the lawsuit. Neither ruling would affect separate "section 232" tariffs that Trump has imposed on steel, aluminum and automobiles, and that are being planned for pharmaceuticals, semiconductors and critical minerals. Trump can also impose non-emergency "section 122" tariffs that would allow tariffs of up to 15pc, but those could only be used for 150 days. Earlier today, the White House said the judges on the trade court, two of whom are Republican appointees, "brazenly abused their judicial power to usurp" Trump's authority. The administration expects appealing the case "all the way to the Supreme Court" but believes other countries will continue to negotiate on trade agreements with the US. The Trump administration has warned the court's invalidation of emergency tariffs under IEEPA poses an immediate and "grave" harm to the US because those alternative tariff authorities do not allow the president to take "swift and flexible" actions that are needed to address national emergencies. At a minimum, the administration has said the tariff suspension should only apply to the handful of manufacturers and states that filed the lawsuit. To support its stay request, the administration included a declaration by US secretary of state Marco Rubio saying the injunction would cause "irreparable harm" to foreign policy and national security, while US trade representative Jamieson Greer warned of a "foreign policy disaster scenario". US commerce secretary Howard Lutnick wrote it would "would destroy" a carefully negotiated agreement with China. US treasury secretary Scott Bessent said the ruling "will threaten to shatter our negotiations with dozens of countries" and create a risk that trading partners "feel a renewed boldness to take advantage of" a new ability to retaliate against the US. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
White House seeks to suspend tariffs ruling: Update
White House seeks to suspend tariffs ruling: Update
Adds White House reaction, additional court action Washington, 29 May (Argus) — President Donald Trump's administration is asking a federal court to suspend a ruling issued late Wednesday that blocked emergency tariffs on nearly all imports, warning that failure to do so will be a foreign policy "disaster" and "shatter" trade negotiations with dozens of countries. The administration is asking the US Court of International Trade to stay its ruling — which would permanently enjoin tariffs now set at 10pc for much of the world, but which are set to revert to higher rates in July absent intervention by Trump — until it has time to pursue an appeal. The harm to foreign affairs from leaving the court ruling intact during an appeal "could not be greater", the administration said, whereas putting the decision on hold will preserve the status quo during an appeal. "It is critical, for the country's national security and the president's conduct of ongoing, delicate diplomatic efforts, that the court stay its judgment," the administration wrote in a legal filing after the court issued its sweeping ruling. The White House said the three judges on the trade court panel behind the ruling, two of whom are Republican appointees, "brazenly abused their judicial power to usurp" Trump's authority. The administration expects appealing the unfavorable ruling "all the way to the Supreme Court" but believes other countries will continue to negotiate on trade agreements with the US as a way to prevent tariffs. In a further setback for the administration, the US District Court for the District of Columbia today ruled in a separate lawsuit that Trump did not have authority to impose the tariffs, which were issued under a law called the International Emergency Economic Powers Act (IEEPA). The effect of that ruling is far more limited and would only freeze tariffs on two small toy companies behind the lawsuit, in the event the broader ruling on Wednesday is put on hold. Trump began imposing the emergency tariffs at issue in the case just weeks into his second term, starting with a 25pc tariff from Canada and Mexico and a 10pc incremental tariff on China, claiming they were in response to the threat of drug trafficking. Trump vastly expanded his use of tariffs on "Liberation Day" on 2 April on nearly every country based on an alleged "emergency" of trade imbalances, raising tariffs to as high as 145pc on China before lowering them to 30pc. The Court of International Trade, in its ruling on Wednesday, found all of those tariffs were unlawful and gave the administration 10 days to implement its ruling. IEEPA did not offer Trump "unbounded" authority to put unlimited tariffs on nearly all goods imported in the US, the court said, but instead set limits on tariff authority that the administration did not follow. If that ruling is upheld on appeal, the US will be required to offer refunds of emergency tariffs that have already been paid. The ruling does not affect separate "section 232" tariffs that Trump has imposed on steel, aluminum and automobiles, and that are being planned for pharmaceuticals, semiconductors and critical minerals. Trump could also pursue non-emergency "section 122" tariffs that would allow tariffs of up to 15pc, but those could only be used for 150 days. The Trump administration, in its request for a stay, said the court's invalidation of emergency tariffs under IEEPA poses an immediate and "grave" harm to the US because those alternative tariff authorities do not allow the president to take "swift and flexible" actions that are needed to address national emergencies. At a minimum, the administration said the tariff suspension should only apply to the handful of manufacturers and states that filed the lawsuit. To support its stay request, the administration included a declaration by US secretary of state Marco Rubio saying the injunction would cause "irreparable harm" to foreign policy and national security, while US trade representative Jamieson Greer said it will be a "foreign policy disaster scenario". US commerce secretary Howard Lutnick wrote it would "would destroy" a carefully negotiated agreement with China. US treasury secretary Scott Bessent warned the ruling "will threaten to shatter our negotiations with dozens of countries" and create a risk that trading partners "feel a renewed boldness to take advantage of" a new ability to retaliate against the US. The White House did immediately respond to a request for comment about the status of the collection of the emergency tariffs. The Trump administration, in its legal filing, said a stay of the ruling would not harm those who brought the tariff lawsuit because the US "will issue refunds" along with any interest that accrues during the appeal. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Trump repeats call for Russia to rejoin G7
Trump repeats call for Russia to rejoin G7
Washington, 16 June (Argus) — US president Donald Trump kicked off his first meeting at the G7 leaders summit in Alberta, Canada, by suggesting that Russia should be invited to rejoin the group from which it was expelled following the invasion of Crimea in 2014. The European members of the group have prepared a wide portfolio of subjects to address at the summit, including proposals to toughen G7 sanctions on Russia. European Commission president Ursula von der Leyen has proposed lowering the G7 price cap on Russian crude to $45/bl and banning imports of refined products made from Russian oil. But Trump, at the beginning of his meeting with Canadian prime minister Mark Carney today, said that "you spend so much time talking about Russia, and [Russian president Vladimir Putin] is no longer at the table, so it makes life more complicated." Expelling Russia was a mistake, Trump said, blaming the decision on former US president Barack Obama and former Canadian prime minister Justin Trudeau. The broader political background is in some ways similar to the G7 summit in 2018, also hosted by Canada, when Trump first told his fellow western leaders they should not have expelled Russia from the group. Now as then, sanctions against Russia are on the G7 agenda and the US Congress is advancing legislation to target Russia's energy exports. The key difference is that Trump in 2025 has sufficient control over the Republican majority in both chambers of Congress to block any legislation he does not like. "They'll be guided by me" on the Russia sanctions legislation, he said earlier this month, calling it a "harsh bill". "At the right time, I'll do what I want to do. But they're waiting for me to decide on what to do," Trump said. Trump has argued that imposing new economic penalties against Russia would derail the ongoing Russia-Ukrainian peace talks, even though he has acknowledged the negotiations have made no progress. Trump is scheduled to meet with Ukrainian president Volodymyr Zelenskiy on the sidelines of the G7 summit, the White House said. Not seeing eye-to-eye on trade, either Trump's fellow leaders were hoping to push him to roll back the unilateral tariffs he imposed on nearly all US trading partners, but Trump's public comments at the start of his meeting with Carney indicated no willingness to compromise on this issue as well. "I think we have different concepts," Trump said. "I have a tariff concept. Mark has a different concept, which is something that some people like, but we're going to see if we can get to the bottom of it today. I am a tariff person." Canada's strong response to Trump's tariffs made him roll back the broad tariffs he imposed on the US' North American neighbors at the beginning of his second term. The bulk of US imports from Canada and Mexico remains duty-free, but Trump's tariffs on steel, aluminum, cars and auto parts do not make an exemption for Canada and Mexico. The effective US tariff rate on imports from Canada and Mexico — the amount of duties collected from all imported goods divided by their value — rose in April to 2.3pc and 4.1pc respectively, up from nearly zero in January, according to US Department of Commerce data. Trump is separately meeting with Mexico president Claudia Sheinbaum later today. Despite a busy pace of meetings with fellow leaders, Trump extended the customary press gaggle at the beginning of his meeting with Carney to take questions on US domestic politics, including his directive Sunday night to the US immigration authorities to carry out massive raids in the largest US cities. Carney in the end had to cut Trump off, asking him to carry on with their meeting. "We have a few more minutes with the president and his team, and then we actually have to start the [G7] meeting to address some of these big issues," Carney said. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US tariff ruling placed on hold during appeal: Update 2
US tariff ruling placed on hold during appeal: Update 2
Updates with changes throughout Washington, 29 May (Argus) — A federal appeals court has temporarily suspended a trade court ruling issued late Wednesday that would have blocked emergency tariffs that President Donald Trump has placed on nearly all imports into the US. The US Court of Appeals for the Federal Circuit, in a four-page order issued today, agreed to place an immediate administrative stay on the ruling until it can consider requests by the Trump administration to suspend the tariff ruling during an appeal. The decision to suspend the tariff ruling — which would permanently enjoin tariffs now set at 10pc for much of the world and 30pc for China — comes as the White House was considering asking the US Supreme Court to intervene if the sweeping tariff ruling was not quickly placed on hold. The latest court order will mean that Trump's emergency tariffs on most of the world will remain in place, at least temporarily. The US Court of International Trade, in the initial ruling on Wednesday, found that Trump's tariffs were unlawful and ordered the administration to rescind them within 10 calendar days. If that ruling is eventually upheld, any of the tariffs collected over the last four months would be refunded. The appeals court has ordered the plaintiffs in the case to file a response to the administration's stay request by 5 June, with the Trump administration filing a reply by 9 June. Trump began imposing the tariffs at issue in the case under the International Emergency Economic Powers Act (IEEPA) weeks into his second term, starting with a 25pc tariff from Canada and Mexico and a 10pc incremental tariff on China that he said were based on the threat of drug trafficking. Trump vastly expanded his use of tariffs on "Liberation Day" on 2 April on nearly every country, based on an alleged "emergency" of trade imbalances, raising tariffs to as high as 145pc on China before lowering them to 30pc. But a three-judge panel on the Court of International Trade on Wednesday said all of those tariffs were unlawful because the IEEPA does not offer "unbounded" authority to put unlimited tariffs on nearly all imported goods. In a separate ruling issued today, the US District Court for the District of Columbia separately ruled that IEEPA did not support the tariffs, but that decision will only apply to two small toy companies that filed the lawsuit. Neither ruling would affect separate "section 232" tariffs that Trump has imposed on steel, aluminum and automobiles, and that are being planned for pharmaceuticals, semiconductors and critical minerals. Trump can also impose non-emergency "section 122" tariffs that would allow tariffs of up to 15pc, but those could only be used for 150 days. Earlier today, the White House said the judges on the trade court, two of whom are Republican appointees, "brazenly abused their judicial power to usurp" Trump's authority. The administration expects appealing the case "all the way to the Supreme Court" but believes other countries will continue to negotiate on trade agreements with the US. The Trump administration has warned the court's invalidation of emergency tariffs under IEEPA poses an immediate and "grave" harm to the US because those alternative tariff authorities do not allow the president to take "swift and flexible" actions that are needed to address national emergencies. At a minimum, the administration has said the tariff suspension should only apply to the handful of manufacturers and states that filed the lawsuit. To support its stay request, the administration included a declaration by US secretary of state Marco Rubio saying the injunction would cause "irreparable harm" to foreign policy and national security, while US trade representative Jamieson Greer warned of a "foreign policy disaster scenario". US commerce secretary Howard Lutnick wrote it would "would destroy" a carefully negotiated agreement with China. US treasury secretary Scott Bessent said the ruling "will threaten to shatter our negotiations with dozens of countries" and create a risk that trading partners "feel a renewed boldness to take advantage of" a new ability to retaliate against the US. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
White House seeks to suspend tariffs ruling: Update
White House seeks to suspend tariffs ruling: Update
Adds White House reaction, additional court action Washington, 29 May (Argus) — President Donald Trump's administration is asking a federal court to suspend a ruling issued late Wednesday that blocked emergency tariffs on nearly all imports, warning that failure to do so will be a foreign policy "disaster" and "shatter" trade negotiations with dozens of countries. The administration is asking the US Court of International Trade to stay its ruling — which would permanently enjoin tariffs now set at 10pc for much of the world, but which are set to revert to higher rates in July absent intervention by Trump — until it has time to pursue an appeal. The harm to foreign affairs from leaving the court ruling intact during an appeal "could not be greater", the administration said, whereas putting the decision on hold will preserve the status quo during an appeal. "It is critical, for the country's national security and the president's conduct of ongoing, delicate diplomatic efforts, that the court stay its judgment," the administration wrote in a legal filing after the court issued its sweeping ruling. The White House said the three judges on the trade court panel behind the ruling, two of whom are Republican appointees, "brazenly abused their judicial power to usurp" Trump's authority. The administration expects appealing the unfavorable ruling "all the way to the Supreme Court" but believes other countries will continue to negotiate on trade agreements with the US as a way to prevent tariffs. In a further setback for the administration, the US District Court for the District of Columbia today ruled in a separate lawsuit that Trump did not have authority to impose the tariffs, which were issued under a law called the International Emergency Economic Powers Act (IEEPA). The effect of that ruling is far more limited and would only freeze tariffs on two small toy companies behind the lawsuit, in the event the broader ruling on Wednesday is put on hold. Trump began imposing the emergency tariffs at issue in the case just weeks into his second term, starting with a 25pc tariff from Canada and Mexico and a 10pc incremental tariff on China, claiming they were in response to the threat of drug trafficking. Trump vastly expanded his use of tariffs on "Liberation Day" on 2 April on nearly every country based on an alleged "emergency" of trade imbalances, raising tariffs to as high as 145pc on China before lowering them to 30pc. The Court of International Trade, in its ruling on Wednesday, found all of those tariffs were unlawful and gave the administration 10 days to implement its ruling. IEEPA did not offer Trump "unbounded" authority to put unlimited tariffs on nearly all goods imported in the US, the court said, but instead set limits on tariff authority that the administration did not follow. If that ruling is upheld on appeal, the US will be required to offer refunds of emergency tariffs that have already been paid. The ruling does not affect separate "section 232" tariffs that Trump has imposed on steel, aluminum and automobiles, and that are being planned for pharmaceuticals, semiconductors and critical minerals. Trump could also pursue non-emergency "section 122" tariffs that would allow tariffs of up to 15pc, but those could only be used for 150 days. The Trump administration, in its request for a stay, said the court's invalidation of emergency tariffs under IEEPA poses an immediate and "grave" harm to the US because those alternative tariff authorities do not allow the president to take "swift and flexible" actions that are needed to address national emergencies. At a minimum, the administration said the tariff suspension should only apply to the handful of manufacturers and states that filed the lawsuit. To support its stay request, the administration included a declaration by US secretary of state Marco Rubio saying the injunction would cause "irreparable harm" to foreign policy and national security, while US trade representative Jamieson Greer said it will be a "foreign policy disaster scenario". US commerce secretary Howard Lutnick wrote it would "would destroy" a carefully negotiated agreement with China. US treasury secretary Scott Bessent warned the ruling "will threaten to shatter our negotiations with dozens of countries" and create a risk that trading partners "feel a renewed boldness to take advantage of" a new ability to retaliate against the US. The White House did immediately respond to a request for comment about the status of the collection of the emergency tariffs. The Trump administration, in its legal filing, said a stay of the ruling would not harm those who brought the tariff lawsuit because the US "will issue refunds" along with any interest that accrues during the appeal. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US tariff ruling could revive biofuel feedstock trade
US tariff ruling could revive biofuel feedstock trade
New York, 29 May (Argus) — A sweeping court ruling Wednesday against President Donald Trump's emergency tariffs could make foreign biofuel feedstock imports, which have wavered this year, more attractive. A three-judge panel on the US Court of International Trade struck down tariffs Trump set under a little-used economic emergency law, including bilateral tariffs on China, "reciprocal" tariffs on nearly every country, and levies on some Canadian and Mexican products to combat drug trafficking. The tariffs upended global trade flows, including by making recently fast-rising inputs for renewable diesel production like Chinese used cooking oil and Brazilian beef tallow more expensive. The trade court gave the government ten days to comply, though the Trump administration has asked for a pause on the ruling and pledged to appeal. Tariffs enacted under other laws, including sectoral tariffs on steel and aluminum imports, would remain intact. Trump could also still eye different authorities to revive his broader tariffs, which he sees as a crucial negotiating tool to counter what he has called unfair trade practices abroad. But the court's decision, if it holds, would still be a significant barrier to Trump's efforts to rewire global trade. The US could even be required to offer refunds of emergency tariffs that have already been paid. US levies on Chinese products imposed under the emergency law at one point reached 145pc, raising fears of a protracted trade war and global economic slowdown. Fewer options for foreign biofuel feedstocks because of tariffs also helped increase the price of domestic alternatives like US soybean oil, where futures were down 2pc in early trading Thursday, and compounded the pain for refiners struggling with major changes to biofuel tax credits. Biomass-based diesel production in the US has been down sharply this year because of all the policy shifts. Formerly fast-rising flow Before this year, renewable diesel and sustainable aviation fuel producers along the US Gulf and west coasts were expanding capacity and increasingly looking abroad for inputs. Waste feedstocks like used cooking oil and beef tallow are considered lower-carbon feedstocks than crops and thus generally fetch larger government subsidies — even if sourced from abroad. The US imported nearly 5.4bn lbs of used cooking oil in 2024, a record-high and with more than half that total coming from China. But Trump's tariffs sharply reduced the incentive to import foreign feedstocks. Duties on Chinese products have varied significantly but were last at 30pc before the court ruling, adding to existing 15.5pc charges on Chinese used cooking oil. Reciprocal tariffs of 10pc on nearly every country added new costs to Australian and Brazilian tallow too. US import data is only available through March, before Trump imposed his most far-reaching tariffs as part of an April "Liberation Day" announcement . But global feedstock traders more recently have said that the tariffs — and the unpredictability of future policy — have made global inputs riskier. While some tariffs are eligible for duty drawbacks, creating options for biofuel producers targeting foreign markets, US imports of Chinese used cooking oil were down 27pc in the first quarter compared to the same period last year. Other barriers remain Even if the court ruling holds, other policies could deter US biorefineries from relying too heavily on foreign feedstocks. For one, current government guidance around a new US clean fuel tax credit prevents refiners from claiming any subsidy for road fuels derived from foreign used cooking oil . Those rules also pin the carbon intensity of canola-based fuels as too high to claim any subsidy, choking off interest in Canadian canola oil imports that had been rising significantly before this year. And farm groups, worried that foreign feedstocks are hurting demand for US crops, are lobbying regulators and lawmakers for more severe limits. A party-line budget bill that passed the House this month would restrict clean fuel tax credit eligibility to fuels derived from North American feedstocks, a win for US oilseed crushers but a major blow to refiners reliant on foreign tallow. While that bill still needs Senate approval and changes would only kick in next year, the proposal is a clear signal from Republicans that refiners should start looking closer to home for renewable diesel inputs. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US tariff ruling could revive biofuel feedstock trade
US tariff ruling could revive biofuel feedstock trade
New York, 29 May (Argus) — A sweeping court ruling Wednesday against President Donald Trump's emergency tariffs could make foreign biofuel feedstock imports, which have wavered this year, more attractive. A three-judge panel on the US Court of International Trade struck down tariffs Trump set under a little-used economic emergency law, including bilateral tariffs on China, "reciprocal" tariffs on nearly every country, and levies on some Canadian and Mexican products to combat drug trafficking. The tariffs upended global trade flows, including by making recently fast-rising inputs for renewable diesel production like Chinese used cooking oil and Brazilian beef tallow more expensive. The trade court gave the government ten days to comply, though the Trump administration has asked for a pause on the ruling and pledged to appeal. Tariffs enacted under other laws, including sectoral tariffs on steel and aluminum imports, would remain intact. Trump could also still eye different authorities to revive his broader tariffs, which he sees as a crucial negotiating tool to counter what he has called unfair trade practices abroad. But the court's decision, if it holds, would still be a significant barrier to Trump's efforts to rewire global trade. The US could even be required to offer refunds of emergency tariffs that have already been paid. US levies on Chinese products imposed under the emergency law at one point reached 145pc, raising fears of a protracted trade war and global economic slowdown. Fewer options for foreign biofuel feedstocks because of tariffs also helped increase the price of domestic alternatives like US soybean oil, where futures were down 2pc in early trading Thursday, and compounded the pain for refiners struggling with major changes to biofuel tax credits. Biomass-based diesel production in the US has been down sharply this year because of all the policy shifts. Formerly fast-rising flow Before this year, renewable diesel and sustainable aviation fuel producers along the US Gulf and west coasts were expanding capacity and increasingly looking abroad for inputs. Waste feedstocks like used cooking oil and beef tallow are considered lower-carbon feedstocks than crops and thus generally fetch larger government subsidies — even if sourced from abroad. The US imported nearly 5.4bn lbs of used cooking oil in 2024, a record-high and with more than half that total coming from China. But Trump's tariffs sharply reduced the incentive to import foreign feedstocks. Duties on Chinese products have varied significantly but were last at 30pc before the court ruling, adding to existing 15.5pc charges on Chinese used cooking oil. Reciprocal tariffs of 10pc on nearly every country added new costs to Australian and Brazilian tallow too. US import data is only available through March, before Trump imposed his most far-reaching tariffs as part of an April "Liberation Day" announcement . But global feedstock traders more recently have said that the tariffs — and the unpredictability of future policy — have made global inputs riskier. While some tariffs are eligible for duty drawbacks, creating options for biofuel producers targeting foreign markets, US imports of Chinese used cooking oil were down 27pc in the first quarter compared to the same period last year. Other barriers remain Even if the court ruling holds, other policies could deter US biorefineries from relying too heavily on foreign feedstocks. For one, current government guidance around a new US clean fuel tax credit prevents refiners from claiming any subsidy for road fuels derived from foreign used cooking oil . Those rules also pin the carbon intensity of canola-based fuels as too high to claim any subsidy, choking off interest in Canadian canola oil imports that had been rising significantly before this year. And farm groups, worried that foreign feedstocks are hurting demand for US crops, are lobbying regulators and lawmakers for more severe limits. A party-line budget bill that passed the House this month would restrict clean fuel tax credit eligibility to fuels derived from North American feedstocks, a win for US oilseed crushers but a major blow to refiners reliant on foreign tallow. While that bill still needs Senate approval and changes would only kick in next year, the proposal is a clear signal from Republicans that refiners should start looking closer to home for renewable diesel inputs. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Import cuts, tariffs buoy US northeast methanol prices
Import cuts, tariffs buoy US northeast methanol prices
Houston, 27 May (Argus) — Tariff uncertainty coupled with lower methanol production in Trinidad has fueled northeast US prices to a higher-than-normal premium compared to the US Gulf coast. Truck and railcar prices in the US northeast typically carry a 15-20¢/USG premium to the US Gulf coast, with some variation ahead of the seasonal demand uptick, according to Argus data. The northeast premium, though, currently sits at nearly 35¢/USG and is at risk of increasing further on declining methanol production out of Trinidad and tariffs currently imposed on the island. More than 65pc of US methanol imports discharged at east coast ports in 2024, with Trinidad and Tobago comprising more than 65pc of total volumes to the region, according to census bureau data compiled by Global Trade Tracker (GTT). Exports from Trinidad to east coast ports during the first quarter fell by 4pc from the same three-month period last year, and marked a 23pc slump from the prior three-year average for the first quarter. This dip in volumes has squeezed east coast inventories, spurring a wider premium that could draw further support from an expected cut in Trinidadian production and tariffs on the island nation. Trinidadian producers are subjected to a 10pc tariff from the US, forcing US importers to pass along related costs. "If [tariffs are] a 10pc base then the market adjusts," a methanol trader said. The trader said uncertainty around President Donald Trump's tariff policy is lending to higher values nearby. US production faces logistical obstacles to meet demand along the northeast. Rail deliveries are expensive and cumbersome, according to several market participants. Barging methanol up the Mississippi River and distributing inland to demand centers in the northeast is also challenged by high distribution and logistics costs, a methanol distributor added. By Steven McGinn Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EU consults on tariffs for €95bn US imports
EU consults on tariffs for €95bn US imports
Brussels, 9 May (Argus) — The European Commission is consulting on an extensive list, worth €95bn ($107bn), of US industrial, agricultural and other imports that could be subject to tariff countermeasures. The long list includes extends from livestock, biofuels, wood pellets to metals, aircraft, tankers and polymers . The consultation runs until midday on 10 June. It is aimed at stakeholders affected by US measures and possible EU rebalancing measures. Also considered for possible countermeasures are restrictions, worth €4.4bn, on EU exports to the US of steel, iron and aluminium scrap, as well as toluidines, alcoholic solutions and enzymes (CN codes 7204, 7602, 292143, 330210 and 350790). The commission linked the possible new measures to US universal tariffs and to Washington's specific tariffs on cars and car parts. The commission said the public consultation is a necessary procedural step. It does not automatically result in countermeasures. The EU also launched a WTO dispute procedure against the US for Washington's universal tariffs, set at 20pc for EU goods and currently paused at 10pc, and at 25pc on all imports of vehicles and car parts. The commission will need approval by EU governments under a simplified legislative procedure. Officials say this will complete a legal act for the countermeasures, making them "ready to use" if talks with the US do not produce a "satisfactory" result. The list of products potentially targeted includes livestock, along with items ranging from spectacles to antiques. The 218-page list includes a range of agricultural and food products including oats, maize, and cereal pellets. Also included are biodiesel and wood pellets (CN codes 38260010, 44013100), as well as paper and cotton products. Aluminium, iron, steel are listed together with a wide range of other goods from gas turbines, ships propellers and blades, aircraft, sea-going tankers and other vessels. Polymers, copolymers, polyesters and other products are not spared (CN codes 39039090 and more). On 10 April, the EU paused its reciprocal tariffs against the US for 90 days, responding to a US pause. The EU notes that €379bn, or 70pc, of the bloc's exports to the US are currently subject to new or paused tariffs. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Chemicals, polymers part of EU tariff consultation
Chemicals, polymers part of EU tariff consultation
London, 8 May (Argus) — Polymer and chemical products are included in a European Commission public consultation on a list of US imports which could become subject to EU countermeasures, if ongoing EU-US negotiations do not result in a mutually beneficial outcome and the removal of the US tariffs. The consultation will remain open until 10 June, after which a final proposal will be made for the adoption of countermeasures and a legal act prepared for imposing them "in case negotiations with the US do not produce a satisfactory result". The list of additional products that could face import tariffs includes many polymers and some chemicals, although appears to target value more than volume. These additions include polypropylene homopolymer and copolymers (HS codes 39021000, 39023000), although these account for a relatively small volume of trade, at 114,000t in 2024, according to GTT data. Other polymer codes on the consultation list include some polystyrene, polyvinyl chloride, acrylonitrile butadiene styrene and polyethylene terephthalate products. Isocyanates and some polyurethanes are part of the consultation. Imports of acetic acid, a methanol derivative were included. EU 27 imports from the US in 2024 were 540,000t. Liquid caustic soda has been included. The EU 27 countries imported 540,000t in 2024. Benzene and xylenes have been included, but only under distinct "non-chemically defined" HS codes (27071000 and 27073000) and for which volumes are small. The European Union on 9 April announced a 90-day delay to a series of planned countermeasures specific to US tariffs on metals to allow space for negotiations. These are separate from the new consultation and remain poised to go ahead if negotiations fail. They included a 25pc tariff on imports from the US of polyethylene under codes representing nearly 1mnt of imports in 2024. By Alex Sands Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US tariff ruling placed on hold during appeal: Update 2
US tariff ruling placed on hold during appeal: Update 2
Updates with changes throughout Washington, 29 May (Argus) — A federal appeals court has temporarily suspended a trade court ruling issued late Wednesday that would have blocked emergency tariffs that President Donald Trump has placed on nearly all imports into the US. The US Court of Appeals for the Federal Circuit, in a four-page order issued today, agreed to place an immediate administrative stay on the ruling until it can consider requests by the Trump administration to suspend the tariff ruling during an appeal. The decision to suspend the tariff ruling — which would permanently enjoin tariffs now set at 10pc for much of the world and 30pc for China — comes as the White House was considering asking the US Supreme Court to intervene if the sweeping tariff ruling was not quickly placed on hold. The latest court order will mean that Trump's emergency tariffs on most of the world will remain in place, at least temporarily. The US Court of International Trade, in the initial ruling on Wednesday, found that Trump's tariffs were unlawful and ordered the administration to rescind them within 10 calendar days. If that ruling is eventually upheld, any of the tariffs collected over the last four months would be refunded. The appeals court has ordered the plaintiffs in the case to file a response to the administration's stay request by 5 June, with the Trump administration filing a reply by 9 June. Trump began imposing the tariffs at issue in the case under the International Emergency Economic Powers Act (IEEPA) weeks into his second term, starting with a 25pc tariff from Canada and Mexico and a 10pc incremental tariff on China that he said were based on the threat of drug trafficking. Trump vastly expanded his use of tariffs on "Liberation Day" on 2 April on nearly every country, based on an alleged "emergency" of trade imbalances, raising tariffs to as high as 145pc on China before lowering them to 30pc. But a three-judge panel on the Court of International Trade on Wednesday said all of those tariffs were unlawful because the IEEPA does not offer "unbounded" authority to put unlimited tariffs on nearly all imported goods. In a separate ruling issued today, the US District Court for the District of Columbia separately ruled that IEEPA did not support the tariffs, but that decision will only apply to two small toy companies that filed the lawsuit. Neither ruling would affect separate "section 232" tariffs that Trump has imposed on steel, aluminum and automobiles, and that are being planned for pharmaceuticals, semiconductors and critical minerals. Trump can also impose non-emergency "section 122" tariffs that would allow tariffs of up to 15pc, but those could only be used for 150 days. Earlier today, the White House said the judges on the trade court, two of whom are Republican appointees, "brazenly abused their judicial power to usurp" Trump's authority. The administration expects appealing the case "all the way to the Supreme Court" but believes other countries will continue to negotiate on trade agreements with the US. The Trump administration has warned the court's invalidation of emergency tariffs under IEEPA poses an immediate and "grave" harm to the US because those alternative tariff authorities do not allow the president to take "swift and flexible" actions that are needed to address national emergencies. At a minimum, the administration has said the tariff suspension should only apply to the handful of manufacturers and states that filed the lawsuit. To support its stay request, the administration included a declaration by US secretary of state Marco Rubio saying the injunction would cause "irreparable harm" to foreign policy and national security, while US trade representative Jamieson Greer warned of a "foreign policy disaster scenario". US commerce secretary Howard Lutnick wrote it would "would destroy" a carefully negotiated agreement with China. US treasury secretary Scott Bessent said the ruling "will threaten to shatter our negotiations with dozens of countries" and create a risk that trading partners "feel a renewed boldness to take advantage of" a new ability to retaliate against the US. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
White House seeks to suspend tariffs ruling: Update
White House seeks to suspend tariffs ruling: Update
Adds White House reaction, additional court action Washington, 29 May (Argus) — President Donald Trump's administration is asking a federal court to suspend a ruling issued late Wednesday that blocked emergency tariffs on nearly all imports, warning that failure to do so will be a foreign policy "disaster" and "shatter" trade negotiations with dozens of countries. The administration is asking the US Court of International Trade to stay its ruling — which would permanently enjoin tariffs now set at 10pc for much of the world, but which are set to revert to higher rates in July absent intervention by Trump — until it has time to pursue an appeal. The harm to foreign affairs from leaving the court ruling intact during an appeal "could not be greater", the administration said, whereas putting the decision on hold will preserve the status quo during an appeal. "It is critical, for the country's national security and the president's conduct of ongoing, delicate diplomatic efforts, that the court stay its judgment," the administration wrote in a legal filing after the court issued its sweeping ruling. The White House said the three judges on the trade court panel behind the ruling, two of whom are Republican appointees, "brazenly abused their judicial power to usurp" Trump's authority. The administration expects appealing the unfavorable ruling "all the way to the Supreme Court" but believes other countries will continue to negotiate on trade agreements with the US as a way to prevent tariffs. In a further setback for the administration, the US District Court for the District of Columbia today ruled in a separate lawsuit that Trump did not have authority to impose the tariffs, which were issued under a law called the International Emergency Economic Powers Act (IEEPA). The effect of that ruling is far more limited and would only freeze tariffs on two small toy companies behind the lawsuit, in the event the broader ruling on Wednesday is put on hold. Trump began imposing the emergency tariffs at issue in the case just weeks into his second term, starting with a 25pc tariff from Canada and Mexico and a 10pc incremental tariff on China, claiming they were in response to the threat of drug trafficking. Trump vastly expanded his use of tariffs on "Liberation Day" on 2 April on nearly every country based on an alleged "emergency" of trade imbalances, raising tariffs to as high as 145pc on China before lowering them to 30pc. The Court of International Trade, in its ruling on Wednesday, found all of those tariffs were unlawful and gave the administration 10 days to implement its ruling. IEEPA did not offer Trump "unbounded" authority to put unlimited tariffs on nearly all goods imported in the US, the court said, but instead set limits on tariff authority that the administration did not follow. If that ruling is upheld on appeal, the US will be required to offer refunds of emergency tariffs that have already been paid. The ruling does not affect separate "section 232" tariffs that Trump has imposed on steel, aluminum and automobiles, and that are being planned for pharmaceuticals, semiconductors and critical minerals. Trump could also pursue non-emergency "section 122" tariffs that would allow tariffs of up to 15pc, but those could only be used for 150 days. The Trump administration, in its request for a stay, said the court's invalidation of emergency tariffs under IEEPA poses an immediate and "grave" harm to the US because those alternative tariff authorities do not allow the president to take "swift and flexible" actions that are needed to address national emergencies. At a minimum, the administration said the tariff suspension should only apply to the handful of manufacturers and states that filed the lawsuit. To support its stay request, the administration included a declaration by US secretary of state Marco Rubio saying the injunction would cause "irreparable harm" to foreign policy and national security, while US trade representative Jamieson Greer said it will be a "foreign policy disaster scenario". US commerce secretary Howard Lutnick wrote it would "would destroy" a carefully negotiated agreement with China. US treasury secretary Scott Bessent warned the ruling "will threaten to shatter our negotiations with dozens of countries" and create a risk that trading partners "feel a renewed boldness to take advantage of" a new ability to retaliate against the US. The White House did immediately respond to a request for comment about the status of the collection of the emergency tariffs. The Trump administration, in its legal filing, said a stay of the ruling would not harm those who brought the tariff lawsuit because the US "will issue refunds" along with any interest that accrues during the appeal. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
White House asks court to suspend tariffs ruling
White House asks court to suspend tariffs ruling
Washington, 29 May (Argus) — President Donald Trump's administration is asking a federal court to suspend a ruling issued late Wednesday that blocked emergency tariffs on nearly all imports, warning that failure to do so will be a foreign policy "disaster" and "shatter" trade negotiations with dozens of countries. The administration is asking the US Court of International Trade to stay its ruling — which would permanently enjoin tariffs now set at 10pc for much of the world, but which are set to revert to higher rates in July absent intervention by Trump — until it has time to pursue an appeal. The harm to foreign affairs from leaving the court ruling intact during an appeal "could not be greater", the administration said, whereas putting the decision on hold will preserve the status quo during an appeal. "It is critical, for the country's national security and the president's conduct of ongoing, delicate diplomatic efforts, that the court stay its judgment," the administration wrote in a legal filing after the court issued its sweeping ruling. Trump began imposing the tariffs at issue in the case just weeks into his second term, starting with a 25pc tariff from Canada and Mexico and a 10pc incremental tariff on China, claiming they were in response to the threat of drug trafficking. Trump vastly expanded his use of tariffs on "Liberation Day" on 2 April on nearly every country based on an alleged "emergency" of trade imbalances, raising tariffs to as high as 145pc on China before lowering them to 30pc. A three-judge panel on the Court of International Trade said Wednesday all of those tariffs, which were issued under a law called the International Emergency Economic Powers Act (IEEPA), were unlawful and gave the administration 10 days to implement its ruling. IEEPA did not offer Trump "unbounded" authority to put unlimited tariffs on nearly all goods imported in the US, the court said, but instead set limits on tariff authority that the administration did not follow. If that ruling is upheld on appeal, the US will be required to offer refunds of emergency tariffs that have already been paid. The ruling does not affect separate "section 232" tariffs that Trump has imposed on steel, aluminum and automobiles, and that are being planned for pharmaceuticals, semiconductors and critical minerals. Trump could also pursue non-emergency "section 122" tariffs that would allow tariffs of up to 15pc, but those could only be used for 150 days. The Trump administration, in its request for a stay, said the court's invalidation of emergency tariffs under IEEPA poses an immediate and "grave" harm to the US because those alternative tariff authorities do not allow the president to take "swift and flexible" actions that are needed to address national emergencies. At a minimum, the administration said the tariff suspension should only apply to the handful of manufacturers and states that filed the lawsuit. To support its stay request, the administration included a declaration by US secretary of state Marco Rubio saying the injunction would cause "irreparable harm" to foreign policy and national security, while US trade representative Jamieson Greer said it will be a "foreign policy disaster scenario". US commerce secretary Howard Lutnick wrote it would "would destroy" a carefully negotiated agreement with China. US treasury secretary Scott Bessent warned the ruling "will threaten to shatter our negotiations with dozens of countries" and create a risk that trading partners "feel a renewed boldness to take advantage of" a new ability to retaliate against the US. The White House did immediately respond to a request for comment about the status of the collection of the emergency tariffs. The Trump administration, in its legal filing, said a stay of the ruling would not harm those who brought the tariff lawsuit because the US "will issue refunds" along with any interest that accrues during the appeal. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US nitrogen markets increasingly rely on Russia
US nitrogen markets increasingly rely on Russia
Houston, 28 May (Argus) — US nitrogen markets have become increasingly reliant on Russian imports, raising concerns over potential new tariffs or sanctions on Russia, but so far US president Donald Trump has said he has no intention of taking such measures. Russia's market share of US urea imports grew to 64pc in May after Trump imposed a 10pc tariff on imports to the US except from Russia and other sanctioned countries. Argus estimates vessel imports to the US in May at about 520,000 metric tonnes (t), 64pc of which are coming from Russia, although a couple vessels may end up delivering in June. Prior to May, Russian product made up 31pc or 1.26mn t of 4mn t of vessel imports this fertilizer year, which runs from July through June, according to US Census Bureau data and Argus estimates. After the announcement of tariffs on 2 April the New Orleans barge market strengthened by $130/st or 34pc to a two-and-a-half-year high of $460-555/st fob by 6 May, even with access to non-tariffed Russian product. Russia, the largest of just a few origins for UAN across the global market, also continues to be the largest source of US UAN imports, representing about 62pc or 963,000t of 1.53mn t of waterborne imports July through May. The US UAN market relies less on imports compared to urea because the US has more UAN production capacity. Access to non-tariffed Russian product dampened the impact of tariffs on the US nitrogen market but there are increasing concerns among traders that the US' one source of non-tariffed imports could dry up. Trump showed increasing signs of impatience with Russia over continuing the conflict in Ukraine after concluding a two hour phone call with Russian president Vladamir Putin last week. Despite saying that "Putin is playing with fire" in a social media post, Trump today said he would not impose new sanctions on Russia, adding that it may jeopardize a ceasefire agreement that he claimed could be ready within two weeks. Trump's evolving relationship with Russia, alongside ongoing tariff negotiations with select countries, complicates the upcoming nitrogen summer fill program in the US. More expensive imports give domestic producers more leverage in price negotiations, while the possibility of tariffs being lifted may cause buyers to push purchases to a later date. But for now, Russia's increasing share of US nitrogen imports is likely to continue, especially after the European Parliament adopted additional tariffs proposed by the European Commission on Russian and Belarusian fertilizers. The new tariffs from the EU should incentivize Russian exporters to send more product to the US. By Calder Jett Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US tariff ruling could revive biofuel feedstock trade
US tariff ruling could revive biofuel feedstock trade
New York, 29 May (Argus) — A sweeping court ruling Wednesday against President Donald Trump's emergency tariffs could make foreign biofuel feedstock imports, which have wavered this year, more attractive. A three-judge panel on the US Court of International Trade struck down tariffs Trump set under a little-used economic emergency law, including bilateral tariffs on China, "reciprocal" tariffs on nearly every country, and levies on some Canadian and Mexican products to combat drug trafficking. The tariffs upended global trade flows, including by making recently fast-rising inputs for renewable diesel production like Chinese used cooking oil and Brazilian beef tallow more expensive. The trade court gave the government ten days to comply, though the Trump administration has asked for a pause on the ruling and pledged to appeal. Tariffs enacted under other laws, including sectoral tariffs on steel and aluminum imports, would remain intact. Trump could also still eye different authorities to revive his broader tariffs, which he sees as a crucial negotiating tool to counter what he has called unfair trade practices abroad. But the court's decision, if it holds, would still be a significant barrier to Trump's efforts to rewire global trade. The US could even be required to offer refunds of emergency tariffs that have already been paid. US levies on Chinese products imposed under the emergency law at one point reached 145pc, raising fears of a protracted trade war and global economic slowdown. Fewer options for foreign biofuel feedstocks because of tariffs also helped increase the price of domestic alternatives like US soybean oil, where futures were down 2pc in early trading Thursday, and compounded the pain for refiners struggling with major changes to biofuel tax credits. Biomass-based diesel production in the US has been down sharply this year because of all the policy shifts. Formerly fast-rising flow Before this year, renewable diesel and sustainable aviation fuel producers along the US Gulf and west coasts were expanding capacity and increasingly looking abroad for inputs. Waste feedstocks like used cooking oil and beef tallow are considered lower-carbon feedstocks than crops and thus generally fetch larger government subsidies — even if sourced from abroad. The US imported nearly 5.4bn lbs of used cooking oil in 2024, a record-high and with more than half that total coming from China. But Trump's tariffs sharply reduced the incentive to import foreign feedstocks. Duties on Chinese products have varied significantly but were last at 30pc before the court ruling, adding to existing 15.5pc charges on Chinese used cooking oil. Reciprocal tariffs of 10pc on nearly every country added new costs to Australian and Brazilian tallow too. US import data is only available through March, before Trump imposed his most far-reaching tariffs as part of an April "Liberation Day" announcement . But global feedstock traders more recently have said that the tariffs — and the unpredictability of future policy — have made global inputs riskier. While some tariffs are eligible for duty drawbacks, creating options for biofuel producers targeting foreign markets, US imports of Chinese used cooking oil were down 27pc in the first quarter compared to the same period last year. Other barriers remain Even if the court ruling holds, other policies could deter US biorefineries from relying too heavily on foreign feedstocks. For one, current government guidance around a new US clean fuel tax credit prevents refiners from claiming any subsidy for road fuels derived from foreign used cooking oil . Those rules also pin the carbon intensity of canola-based fuels as too high to claim any subsidy, choking off interest in Canadian canola oil imports that had been rising significantly before this year. And farm groups, worried that foreign feedstocks are hurting demand for US crops, are lobbying regulators and lawmakers for more severe limits. A party-line budget bill that passed the House this month would restrict clean fuel tax credit eligibility to fuels derived from North American feedstocks, a win for US oilseed crushers but a major blow to refiners reliant on foreign tallow. While that bill still needs Senate approval and changes would only kick in next year, the proposal is a clear signal from Republicans that refiners should start looking closer to home for renewable diesel inputs. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Mexican GDP outlook dims on tariffs: IMEF
Mexican GDP outlook dims on tariffs: IMEF
Mexico City, 21 May (Argus) — Mexico's association of finance executives IMEF lowered its 2025 growth forecast for a fourth consecutive month, citing the growing impact of US tariffs on the economy. GDP is now expected to grow just 0.1pc in 2025, according to IMEF's May survey, down from 0.2pc estimates in April, 0.6pc in March and 1pc in February. The number of respondents forecasting a contraction in GDP rose to 16, or 37pc of the sample, from nine in April. While the US has granted some exemptions and discounts for Mexican goods meeting regional content rules, IMEF said the effective tariff rate on Mexican exports remains higher than that for Canada, Brazil, India, Vietnam and others. "We're already seeing the [tariffs'] impacts," said IMEF economic studies director Victor Herrera, adding that May trade data will likely show a sharp drop in Mexican exports to the US. Trade is also being hit by a screwworm outbreak in cattle that led to port closures last week and curtailed beef exports, which account for $1.3bn in annual exports. More automakers could relocate or scale back production in Mexico, Herrera said, after Stellantis confirmed plans to shift some operations to the US and recent reports Nissan may close one or both of its Mexican plants. In response, Mexico this week sent deputy economy minister Luis Rosendo Gutierrez to Tokyo to meet with Mazda, Nissan, Toyota and Honda executives. IMEF cut its 2025 job creation forecast to 200,000 in May from 220,000 in April. Mexico's social security administration IMSS reported only 43,500 new jobs over the past 12 months as of 5 May. Beyond trade, IMEF flagged uncertainty from recent constitutional reforms and the potential for a US tax on remittances as additional risks to growth. The group held its 2025 inflation forecast steady at 3.8pc, despite Mexico's consumer price index rising to 3.93pc in April from 3.80pc in March . IMEF noted concerns about a potential rebound in inflation later this year after the central bank cut its benchmark interest rate by 50 basis points to 9pc on 8 May — the third such cut in 2025. The group now sees the end-2025 rate at 7.75pc, down from 8pc previously. IMEF expects the peso to end the year at Ps20.80/$1, slightly lower than the Ps20.90/$1 forecast in April. The peso recently strengthened to Ps19.34/$1, though Herrera said this reflected dollar weakness more than peso strength. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EU consults on tariffs for €95bn US imports
EU consults on tariffs for €95bn US imports
Brussels, 9 May (Argus) — The European Commission is consulting on an extensive list, worth €95bn ($107bn), of US industrial, agricultural and other imports that could be subject to tariff countermeasures. The long list includes extends from livestock, biofuels, wood pellets to metals, aircraft, tankers and polymers . The consultation runs until midday on 10 June. It is aimed at stakeholders affected by US measures and possible EU rebalancing measures. Also considered for possible countermeasures are restrictions, worth €4.4bn, on EU exports to the US of steel, iron and aluminium scrap, as well as toluidines, alcoholic solutions and enzymes (CN codes 7204, 7602, 292143, 330210 and 350790). The commission linked the possible new measures to US universal tariffs and to Washington's specific tariffs on cars and car parts. The commission said the public consultation is a necessary procedural step. It does not automatically result in countermeasures. The EU also launched a WTO dispute procedure against the US for Washington's universal tariffs, set at 20pc for EU goods and currently paused at 10pc, and at 25pc on all imports of vehicles and car parts. The commission will need approval by EU governments under a simplified legislative procedure. Officials say this will complete a legal act for the countermeasures, making them "ready to use" if talks with the US do not produce a "satisfactory" result. The list of products potentially targeted includes livestock, along with items ranging from spectacles to antiques. The 218-page list includes a range of agricultural and food products including oats, maize, and cereal pellets. Also included are biodiesel and wood pellets (CN codes 38260010, 44013100), as well as paper and cotton products. Aluminium, iron, steel are listed together with a wide range of other goods from gas turbines, ships propellers and blades, aircraft, sea-going tankers and other vessels. Polymers, copolymers, polyesters and other products are not spared (CN codes 39039090 and more). On 10 April, the EU paused its reciprocal tariffs against the US for 90 days, responding to a US pause. The EU notes that €379bn, or 70pc, of the bloc's exports to the US are currently subject to new or paused tariffs. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Canada grants tariff relief to automakers
Canada grants tariff relief to automakers
Pittsburgh, 17 April (Argus) — The Canadian government will allow automakers to circumvent retaliatory tariffs to continue importing US-assembled vehicles if the companies keep making cars in Canada. Canada began taxing imports of US-made vehicles and parts on 9 April at a 25pc rate in response to a similar tariff the US had implemented. Canada's tariff on vehicle imports from the US will not apply to car companies that keep their Canadian plants running, the country's finance minister said this week. The measure attempts to prevent closures of auto plants and layoffs in the Canadian automotive sector that the US tariffs threaten to cause. Automaker Stellantis paused production at its Windsor, Ontario, assembly plant in early April to evaluate the US tariff on vehicle imports. The plant will re-open on 22 April, Stellantis said. General Motors also plans to reduce production of its electric delivery fan at its Ingersoll, Ontario plant. The slowdown will result in layoffs of 500 workers, the Unifor union said. The automotive industry in the US, Canada and Mexico has struggled to adapt its supply chains to the new tariffs because the US, Canada Mexico free trade agreement (USMCA) and its predecessor helped establish an interconnected North American auto sector. In another measure, companies in Canada will get a six-month reprieve from tariffs on imports from the US used in manufacturing, food and beverage packaging. The six-month relief also applies to items Canada imports from the US used in the health care, public safety and national security sectors. "We're giving Canadian companies and entities more time to adjust their supply chains and become less dependent on US suppliers," finance minister Francois-Philippe Champagne said in a statement. By James Marshall Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Mexico’s trade balance swings to surplus in May
Mexico’s trade balance swings to surplus in May
Mexico City, 26 June (Argus) — Mexico's trade balance returned to surplus territory in May, as higher crude export volumes helped to offset drags on manufacturing from US tariffs. Mexico recorded a $1.03bn trade surplus in May, statistics agency Inegi reported Thursday, swinging from a $88mn deficit the previous month. Total exports in May were valued at $55.5bn, while imports reached $54.4bn. The surplus was wider than Mexican bank Banorte's forecast of $279mn. The balance reflects the trade deficit in oil-related products narrowing to $2.11bn in May from $2.87bn in April, as well as a rebounding surplus in non-oil trade to $3.14bn from $2.78bn in April. Mexico ran a $2.04bn trade surplus for the January-May period, including a $10.96bn surplus in non-oil trade and a $8.92bn deficit in oil-related trade. This reflects the longer-term trend of growing non-oil exports set against widening deficits of oil-related goods. Manufacturing exports — especially autos — have been the most affected by US tariffs enacted in March and April. Despite US exemptions tied to trade treaties, Mexico still faces an average effective US tariff rate of 11.9pc — the eighth highest globally and the highest in the western hemisphere, according to Fitch Ratings. The auto industry is also participating in negotiations to soften steel and aluminum tariffs to prevent further supply chain disruptions. Manufacturing exports fell by 0.6pc in May after a 0.7pc drop in April. Auto exports declined by 1.3pc in May, following a 4.8pc fall in April. Inegi reported a 10.3pc annual drop in the value of auto exports to the US in May, after an 8pc decline in April. Exports had surged 6.5pc in March as companies rushed shipments ahead of tariff implementation. Agricultural exports contracted by 2.6pc in May from the previous month after rising 2pc in April, while non-oil mining exports contracted 2.9pc after surging 26pc in April. Oil-related exports totaled $2.06bn in May — $1.33bn in crude and $722mn in refined products — compared with $1.83bn in crude alone in April. This comes despite a stronger peso and lower oil prices. Mexico's crude export mix averaged $57.88/bl in May, down $2.94/bl from April and $16.51/bl below the year-earlier level. Crude export volumes rose to 743,000 b/d from 693,000 b/d in April but remained below the 930,000 b/d exported in May 2024. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US Fed sees 2 rate cuts in '25, eyes tariffs: Update
US Fed sees 2 rate cuts in '25, eyes tariffs: Update
Adds Powell comments, economic backdrop. Houston, 18 June (Argus) — US Federal Reserve policymakers kept the target interest rate unchanged today and signaled two quarter-point cuts are still likely this year while downgrading forecasts for the US economy in the face of largely tariff-driven uncertainty. The Fed's Federal Open Market Committee (FOMC) held the federal funds rate unchanged at 4.25-4.50pc, in the fourth meeting of 2025. This followed rate cuts of 100 basis points over the last three meetings of 2024, which lowered the target rate from more than two-decade highs. In the Fed's first release of updated economic projections since President Donald Trump's 2 April "Liberation Day" announcement of far-ranging tariffs, policymakers continued to pencil in two quarter-point rate cuts for the remainder of the year. "Changes to trade, immigration, fiscal and regulatory policies continue to evolve and their effects on the economy remain uncertain," Fed chair Jerome Powell told reporters after the meeting. "Today, the amount of the tariff effects — the size of the tariff effects, their duration and the time it will take, are all highly uncertain. So that is why we think the appropriate thing to do is to hold where we are as we learn more." Policymakers and Fed officials Wednesday lowered their median estimate for GDP growth this year to 1.4pc from a prior estimate of 1.7pc in the March economic outlook. They see inflation rising to a median 3pc for 2025 from the prior estimate of 2.7pc, with unemployment rising to 4.5pc from 4.4pc in the prior forecast. Economists have warned that Trump's erratic use of tariffs and plans to raise the national debt, along with mounting geopolitical risk highlighted by the latest Israel-Iran clashes, threaten to throw the economy into a recession or marked slowdown. Consumer confidence has tumbled and financial markets have been volatile while the dollar has slumped to three-year lows. Still, the labor market and inflation — the two pillars of the Fed's policy mandate — have remained relatively stable into the fifth month of Trump's administration. "As long as the economy is solid, as long as we're seeing the kind of labor market that we have and reasonably decent growth, and inflation moving down, we feel like the right thing to do is to be where we are, where our policy stance is and learn more," Powell said. US job growth slowed to 139,000 in May, near the average gain of 149,000 over the prior 12 months and unemployment has remained in a range of 4-4.2pc since May 2024. Consumer inflation was at an annual 2.4pc in May, down from 3pc in January. US GDP growth contracted by an annual 0.2pc in the first quarter, largely due to an increase in imports on pre-tariff stockpiling, down from 2.4pc in the fourth quarter and the lowest in three years. "What we're waiting for to reduce rates is to understand what will happen with the tariff inflation," Powell said. "And there's a lot of uncertainty about that. Every forecaster you can name who is a professional is forecasting a meaningful increase in inflation in coming months from tariffs because someone has to pay for the tariffs." Before Wednesday's FOMC announcement, Trump made a rambling attack on the Fed's policy under Powell, in remarks to reporters at the White House. "I call him 'too late Powell', because he's always too late" in lowering rates. "Am I allowed to appoint myself at the Fed? I do a much better job than these people." Powell's term in office as Fed chair expires in May 2026. Powell declined to directly address Trump's comments. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US Fed keeps rate flat, still eyes 2 cuts in 2025
US Fed keeps rate flat, still eyes 2 cuts in 2025
Houston, 18 June (Argus) — US Federal Reserve policymakers kept the target interest rate unchanged today and signaled two quarter-point cuts are still likely this year. The Fed's Federal Open Market Committee (FOMC) held the federal funds rate unchanged at 4.25-4.50pc, in the fourth meeting of 2025. This followed rate cuts of 100 basis points over the last three meetings of 2024, which lowered the target rate from more than two-decade highs. In the Fed's first release of updated economic projections since President Donald Trump's 2 April "Liberation Day" announcement of far-ranging tariffs, policymakers continued to pencil in two quarter-point rate cuts for the remainder of the year. Policymakers and Fed officials Wednesday lowered their estimate for GDP growth this year to 1.4pc from a prior estimate of 1.7pc in the March economic outlook. They see inflation rising to 3pc for 2025 from the prior estimate of 2.7pc, with unemployment rising to 4.5pc from 4.4pc in the prior forecast. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US Supreme Court asked to rule on tariffs
US Supreme Court asked to rule on tariffs
Washington, 17 June (Argus) — Plaintiffs in one of the legal cases challenging President Donald Trump's authority to impose tariffs are asking the Supreme Court to hear their arguments even before US federal appeals courts rule on their petition. The legal case brought by the plaintiffs — toy companies Learning Resources and hand2hand — resulted in a ruling by the US District Court for the District of Columbia in late May that Trump did not have the authority to impose tariffs by citing a 1978 law called the International Emergency Economic Powers Act (IEEPA). That case is currently on appeal at the US Court of Appeals for the DC Circuit. The plaintiffs today urged the Supreme Court to take the case and schedule oral arguments at the start of its fall term in October, or possibly in a special September sitting. The plaintiffs argued the Supreme Court will eventually have to rule on the case given the unprecedented use of IEEPA by the Trump White House to impose tariffs, so special consideration should be given to the case even before appeals courts rule on it. The Supreme Court is under no obligation to fast-track the case. The schedule for legal challenges to Trump's authority is clashing with his claims to be negotiating multiple deals with foreign trade partners. Trump cited the IEEPA to impose, then rescind, tariffs of 10-25pc on energy and other imports from Canada and Mexico in February-March. He used the same law to impose 20pc tariffs on China in February-March, and to impose 10pc tariffs on nearly every US trading partner in April. The US Court of Appeals for the DC Circuit has stayed the toy companies' case until the resolution of a separate, broader legal challenge to Trump's tariff authority. In that case, the US Court of International Trade ruled in late May that Trump's use of IEEPA was illegal and ordered the administration to remove all tariffs it imposed under that rubric and to refund all import duties it collected. The trade court's ruling is under review at the US Court of Appeals for the Federal Circuit, which scheduled an oral argument on 31 July to hear from plaintiffs — a group of US companies and several US states — and from the Trump administration. The trade court's ruling in late May was unexpected, as it "actually ruled on the merits of the case, as opposed to just granting or denying an injunction," according to Alec Phillips, chief political economist with investment bank Goldman Sachs' research arm. "The question now is, will the Federal Circuit uphold the ruling, and will ultimately the Supreme Court uphold the ruling?" The Trump administration argued that the legal challenges to its tariff authority could undermine its ability to negotiate with foreign trade partners. The administration has so far produced two limited trade agreements, with the UK and China, despite promising in early April to unveil "90 deals in 90 days". Trump on Monday described ongoing trade negotiations as an easy process. "We're dealing with really, if you think about it, probably 175 countries, and most of them can just be sent a letter saying, 'It'll be an honor to trade with you, and here's what you're going to have to pay to do'", Trump said. But on the same day he pushed back on calls from Canada and the EU to negotiate trade deals, arguing that their approach is too complex. "You get too complex on the deals and they never get done," Trump said. The legal challenges to Trump's authority under IEEPA will not affect the tariffs he imposed on foreign steel, aluminum, cars and auto parts. US trade statistics point to a significant tariff burden in place in April, the latest month for which data are available.The effective US tariff rate on all imports — the amount of duties collected divided by the total value of imports — rose to 7.1pc in April from 2.4pc in January. Trump has dismissed concerns about the impact of tariffs on consumer prices, noting on Monday that "we're making a lot of money. You know, we took in $88bn in tariffs." Treasury Department revenue data show that the US has collected $98bn in customs revenue for the year through 13 June, up from $63bn in the same period last year. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
