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Trump announces a 25% tariff on EU automobiles
U.S. president Donald Trump announced on Friday that he will increase tariffs to 25% on?cars?and trucks imported from the European Union, claiming the bloc has not adhered to its trade agreement with Washington. In a post on social media, he said: "Based on the European Union not adhering to our Trade Deal fully agreed upon, I will increase Tariffs for Cars and Trucks entering the United States next week." It is understood and agreed by all that there will be no tariff if the Cars and Trucks are produced in U.S.A. Plants." Trump told reporters in the White House that a higher tariff on European cars would force them to move production more quickly to the U.S. "We have an agreement with the European Union on trade. The European Union was not following the agreement. "I raised the tariffs for cars and trucks by 25%. That's millions of dollars going into the United States and forces them to move the factory production much quicker." SLOW IMPLEMENTATION Last year, the Trump administration imposed a 25% tariff on automotive imports from around the world under a "national security trade law". However, in August, they reached an agreement with EU to reduce these duties to 15% net, including previous duties. In exchange, EU agreed to remove duties on U.S. Industrial Goods, including Autos, and accept U.S. Safety and Emission Standards on Vehicles. The EU has passed legislation to reduce tariffs in March, but the process will not be complete before June as EU governments and European Parliament negotiate final texts. Bernd Lange is the chairperson of the European Parliament’s international trade committee. He said that President Trump's behaviour was unacceptable. This latest move shows just how unreliable U.S. is. In the case of Greenland, we have seen the U.S. make arbitrary decisions. This is not the way to treat partners. Lange stated that we must now respond with clarity and firmness based on our position. A Trump administration official was asked to explain Trump’s move. He said: "The EU still hasn't complied with autos agreement after eight months." Ford Motor shares fell by 2%, while Stellantis shares dropped by 1.7%. General Motors shares dropped 1.1%. Ryan Majerus is a former senior U.S. Commerce Department Official who now works as a partner at King & Spalding. He said that the president's decision may also be'related' to Trump's frustration over the fact that some European countries 'balked' at supporting the U.S. and Israeli war against Iran. Majerus stated that "this is not going sit well with the EU and I am not sure the Administration cares because they are so antagonistic towards the EU." Reporting by Daphne Psaledakis; editing by Michelle Nichols & Paul Simao
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Trump annonce qu'il va porter les droits de douane sur les voitures UE a 25 %
Le president americain Donald Trump a ?declare vendredi qu'il allait porter ?a 25% les droits de douane sur ?les voitures et ?les camions ?en ?provenance de l'Union europeenne, expliquant sa decision par le fait, qu'a ses yeux, l'UE n'a pas respecte leur accord commercial. "Etant donne que l'Union europeenne ne respecte pas notre accord ?commercial, sur lequel nous nous etions pleinement mis d'accord, ?j'augmenterai la semaine prochaine les droits de douane imposes a ?l'Union europeenne sur les voitures et les camions entrant aux Etats-Unis", ecrit-il ?dans un message publie sur les reseaux ?sociaux. "Il est clairement entendu ?et convenu que, s'ils produisent des voitures et des camions dans des usines aux Etats-Unis, il n'y aura AUCUN DROIT DE DOUANE", a ajoute Donald Trump. Fin mars, le Parlement europeen ?avait approuve le texte relative a la procedure destinee a remplir la part europeenne ?de l'accord commercial conclu avec les Etats-Unis, apres ?des ?mois d'incertitude nourris par les menaces douanieres de Donald Trump et par l'instauration ?d'un nouveau prelevement a l'importation. Mais cette ?etape n'etait pas la derniere, puisque les representants du Parlement et ?des gouvernements de l'UE ?doivent encore negocier les ?textes finaux, avant un vote definitif dont la date reste a determiner. (Daphne Psaledakis et Susan Heavey, version francaise Benoit Van Overstraeten)
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Spirit Airlines is preparing to shut down operations following the failure of a bailout plan, reports WSJ
The Wall Street Journal reported that Spirit Airlines, the bankrupt discount carrier, is about to stop operations after it failed to reach an agreement with bondholders, as well as the U.S. Government, on a bailout program. Last month, President Donald Trump said that his administration wanted to purchase the embattled carrier for the "right price." Later, sources said that the administration proposed $500 million of financing in exchange for warrants equal to 90% Spirit's equity. The?report, citing sources familiar with the issue, said that there had been disagreements within the Trump administration about whether and how the bailout should be funded. The report also stated that not all Spirit bondholders supported the deal. The rescue hearing that was scheduled for April 30th did not happen after talks continued over terms of a possible $500 million U.S. government bailout. Spirit's spokesperson declined to comment about ongoing discussions and said that "business as usual" is the company's position. The White House didn't immediately respond to an inquiry for comment. It would be the first industry casualty directly linked to the conflict in Iran. Following the report, shares of rival Frontier Airlines rose 10% while JetBlue Airways gained 7.5%. Spirit Airlines reached an agreement with its lenders earlier that would have allowed it to emerge from its second bankruptcies?by the end of spring or early summer. These plans were derailed, however, after the war with Iran caused a sharp rise in?jet-fuel prices. This threw Spirit's cost estimates off and complicated?its bankruptcy. According to disclosures made in March, the carrier based its turnaround plan on an average jet fuel cost of $2.24 a gallon in 2026. This would rise to $2.14 a gallon by?2027. By the end of April, the price had risen to $4.51 per gallon. This was double what the projections assumed.
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US Treasury warns that even in the form of charity, shippers should not pay tolls for Hormuz.
The U.S. Treasury warned that any shipper who pays tolls for the Strait of Hormuz to Iran, or makes charitable donations to groups such as the Iranian Red Crescent Society is subject to punitive sanctions. About 20% of all crude oil and natural gas transported by sea passes through the Strait of Hormuz. Tehran has proposed to charge fees or tolls for vessels that pass through the Strait as part of its proposals to end war with Israel and the United States. According to the advisory from Treasury's Office of Foreign Assets Control (OFAC), the U.S. knows that Iran is requesting payment for safe passage across the Strait. OFAC warned companies that they were at risk if they paid tolls, but clarified that indirect payments or payments disguised as charity are not permitted. Treasury has not provided any details on countries or companies who have made indirect payments. At least one $2 million payment was reported for a vessel that crossed the Strait. The warning was issued as Iran sent its most recent proposal for negotiations with U.S. mediators to Pakistani mediators, a move which could improve the prospects of breaking the impasse in the efforts to end Iran war. OFAC stated that payment demands could include a variety of options including fiat currency, digital assets or offsets. It said: "OFAC has issued this alert in order to warn U.S. citizens and those from other countries about the risks associated with making payments to the Iranian regime or requesting guarantees for safe passage. These risks are present regardless of the payment method. OFAC has also imposed new sanctions on three alleged Iranian foreign exchange houses that facilitate billions in dollars of transactions annually, as well as their front companies. The office also imposed sanctions related to Iran on the Panama flagged NEW FUSION tanker carrying oil products. Treasury Secretary Scott Bessent stated that "we will relentlessly target regime's?ability to generate, move and repatriate money, and pursue anyone who enables Tehran's efforts to evade sanction." Analysts have said for years that China, Iran’s largest oil buyer, will continue buying the petroleum until U.S. sanctions are imposed on its banks. This move could, however, damage Washington's relationship with Beijing. (Reporting and editing by Chizu Nomiyama, Andrew Heavens, and Timothy Gardner)
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US grid operator PJM appoints Mills to the position of president and CEO
PJM 'Interconnection, America's largest power grid operator, announced on?Friday that?David?Mills had been appointed as its CEO and president. On?Friday, PJM?Interconnection, the largest?U.S. power grid operator announced that David?Mills had been appointed as its CEO and President. Mills has been a member of PJM's board of managers since '2021, including as chair since 'May 2025', according to the company. His new position became effective on Friday. PJM said that Mills has resigned as the board chair, as well as a member who can vote on board matters. She will still serve in a non-voting capacity. Grid operator currently processes new power plant applications after working through an?annual backlog? of projects. PJM, the company that manages electricity transmission across 13 Midwest - and Mid-Atlantic - states, may also face electricity shortages if the surge in power demand from data centers exceeds supply. (Reporting by Anushree Mukherjee in Bengaluru; Editing by Paul Simao)
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US Treasury warns that even if you pay in charity, the tolls for Hormuz are still a violation.
The U.S. Treasury warned that any shippers who pay tolls to?Iran to pass through the Strait?of Hormuz or make charitable donations to groups such as the Iranian?Red Crescent Society are?at?risk? of sanctions. About 20% of all crude oil and LNG flows in the world pass through the Strait of Hormuz. Tehran has proposed to charge a fee or toll on vessels that pass through the Strait as part of its proposals to end the conflict with Israel and the United States. The advisory from the Office of Foreign Assets Control of the Treasury stated that U.S. The U.S. is aware of the 'Iranian threats against shipping and their demands for payment to ensure safe passage through Strait. The warning was issued as Iran sent its latest negotiation proposal with the U.S. through Pakistani mediators. This move could improve prospects of breaking the impasse in the efforts to end Iran war. OFAC stated that demands could include a variety of payment options including fiat currency or digital assets, offsets or informal swaps. Other in-kind payments may also be accepted, such as nominally charitable contributions made to the Iranian Red Crescent Society, Bonyad Mostazafan or Iranian Embassy accounts. It said: "OFAC has issued this alert to warn U.S. citizens and non-U.S. citizens about the sanctions risks associated with requesting or paying for guarantees from the Iranian regime to ensure safe passage, or making these payments." These risks are the same regardless of how you pay. Reporting by Timothy Gardner, Editing by Chizu nomiyama
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Court documents show that Trader Mercuria has sued Baltic Exchange for losses incurred by the Hormuz cargo, according to a court filing.
A court filing revealed that commodity trader Mercuria has sued the Baltic Exchange - the top provider of shipping benchmark indices in the world - for losses caused by data on oil tanker prices which did not take into account the effective closure of the Strait of Hormuz. The U.S. and Israeli 'war' with Iran began on February 28. Since then, hundreds of ships have been stranded in the Gulf. 20,000 seafarers are unable to pass through the crucial chokepoints. Only a handful of ships will make the journeys every day. In a filing dated April 30, and submitted via England's High Court,?Mercuria – one of the top energy and commodities traders in the world - stated that the Baltic Exchange continues to publish its benchmark 'crude tanker' index, known by the code TD3C despite the closure of the strait. The TD3C is based upon?voyages between the Gulf and China. Mercuria stated that the result was "ongoing extreme volatility" in the TD3C pricing, which did not accurately?or reliable represent the underlying markets it was intended to measure. This had distorted the shipping and freight derivatives markets, which rely on this index. Freight forward contracts allow investors to make positions on future freight rates. Mercuria, a Baltic Exchange customer, claimed that the exchange "breached the contractual and/or legal duties mentioned above" by not suspending the benchmark. It caused Mercuria, and its affiliates to suffer losses on physical freight contracts as well as settled derivative freight contracts benchmarked against TD3C. The filing stated that while such losses were yet to be quantified they "were currently estimated to be in the hundreds of millions of U.S. dollar." Mercuria has declined to comment about?Friday. The London-based Baltic?Exchange is owned by Singapore’s SGX and produces daily benchmark rates, indices and a range of other indices used to settle and trade freight?contracts around the world. They declined to comment. One Baltic member, and active user of 'the TD3C Route,' who declined to name themselves due to the sensitive nature of the issue, stated that the exchange acted in accordance with its benchmark guidelines and regulation?and advised the market as to?how Middle East Gulf route would be assessed during conflict. Since the beginning of the war, The Baltic has conducted market consultations and offered an alternative benchmark. (Reporting and editing by Tomaszjanowski, Dmitry Zhdannikov and Jonathan Saul)
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After Israeli interceptions, Gaza flotilla activists are taken to Crete
Israeli forces captured their ships in international waters near Greece on Friday, bringing more than 100 pro Palestinian activists to the Greek island of Crete. The activists were part of a second Global?flotilla launched in recent months to deliver humanitarian aid and break Israel's Gaza blockade. The ships left the Spanish port Barcelona on 12 April. The ships set sail from the Spanish port of Barcelona on April 12. Israel's Foreign Ministry called the organizers of the flotilla "professional provocateurs". TWO ACTIVISTS HOLDEN Two activists, according to the organizers, remained in Israeli custody. Spain's Foreign Minister, Jose Manuel Albares said that 30 Spaniards arrived in Crete, but one Spanish citizen, Saif Ab Keshek was "illegally arrested" and would be?taken back to Israel. "We demand his release immediately," he said. Israel's Foreign Ministry said Abu Keshek, suspected of belonging to a terrorist group, and a second activist - suspected of illegal activities - would be brought to Israel for interrogation. The?foreign minister said that Israel will not allow the breach?of the lawful naval blocade on Gaza. The foreign ministers of Germany and Italy issued a statement in which they said that they followed the developments with "deep concerns". Source who requested anonymity said that while Israel had intercepted 22 boats, 47 other vessels were still sailing south of Crete. They planned to anchor at some point and continue on to Gaza. The source said that each ship was carrying approximately a ton worth of food, medical equipment and other items. Organisers of the flotilla said that Israel seized 22 ships in international waters near Greece's Peloponnese Peninsula, hundreds of miles away from Gaza. In a statement issued on Thursday, the U.S. State Department warned that it would "impose consequences" to those who supported the flotilla. It characterized the group as being pro-Hamas. Pro-Palestinian activist say that Israel and the U.S. mistakenly confuse their advocacy of Palestinian rights with support for Hamas terrorists. In October last year, Israel's military stopped a previous flotilla organized by the same organisation. Greta Thunberg was arrested along with more than 450 other participants. This was followed by other seaborne attempts to reach the blockaded Gaza. Palestinians and international aid agencies say that supplies are still not enough to reach Gaza, despite an October ceasefire agreement which included guarantees for increased aid. Gaza's 2 million plus people are mostly displaced. Many live in bombed out homes, makeshift tents, and open land, roadside, or on top of the ruins of buildings. Israel, which controls the Gaza Strip and all its access points, denies that it is denying supplies to its residents. Reporting by TV, Renee Maltezou, and Angeliki Koutantou; Writing by Ivana Skularac and Editing by William Maclean & Alex Richardson
EU's airline offer requires fuel doubts over further attempts
It took a year of wrangling with the European Commission for Germany's Lufthansa to gain approval to purchase 41% of Italy's ITA Airways, and only after it accepted big concessions.
While the deal broadens Lufthansa's footprint in the rewarding southern European market, the combined group will have to cede some routes and slots to competitors for it to continue. Market executives, financiers and specialists say greater examination of such tie-ups by European regulators and demands for treatments might hinder major airlines from additional deals. British Airways-owner IAG has been in the crosshairs because 2019 when it revealed strategies to purchase Spanish carrier Air Europa, with an EU due date of Aug. 20 for concessions, while regulators are also expected to probe Air France-KLM's plan to purchase 19.9% of Scandinavian carrier SAS.
Airline executives have actually long said consolidation is required to aid balance out soaring operating costs, helping providers recover from the COVID-19 pandemic which brought worldwide travel to a stop and the travel sector to the verge.
But regulators fret Europe's three largest groups, IAG, Air France-KLM and Lufthansa, are ending up being too dominant, possibly hurting consumer choice and making flying less economical.
We can see that Europe is ending up being increasingly more careful about this wave of debt consolidation, stated Piotr Grobelny at aviation data analysis company IBA.
The next prospect for privatisation is Portugal's TAP. However Lisbon's plans have actually been thrown off course by political turmoil, in spite of interest from Air France-KLM, Lufthansa and IAG.
TAP CEO Luis Rodrigues said last month that the new centre-right government ought to not sell 100% of the airline company and need to likewise generate non-aviation investors, like private equity.
That could reduce issues in Brussels about the potential for a market dominated by a handful of big airline groups.
One banker dealing with mergers stated that airlines watch out for losing time, cash in legal charges and needing to give up important take-off and landing slots in order to get clearance for offers.
More complex deals can use up to two years to complete, stated Martina Farkas, M&A partner at Linklaters, adding: Offers. are taking longer and are ending up being more complicated and expensive.
It can not be ruled out that tactically important deals. attracting regulatory attention might have the potential to be. delayed and face more obstacles, Farkas told .
NO CONCESSIONS
Dealmaking can also be complicated due to the fact that governments often. hold stakes in national providers which they consider as tactical. assets too important to fail.
Britain's Monarch collapsed in 2017 and FlyBe has entered into. administration, however lots of other airlines were kept afloat with. taxpayer funds, particularly throughout the pandemic.
Previous EU antitrust commissioner Didier Reynders informed the. Financial Times in 2015 that regulators would look for harder. concessions from those looking to merge to ensure fair. competitors and decrease market concentration of the big 3. This has actually been at the heart of IAG's fight to buy Air Europa. It. has actually offered more concessions, such as making 52% of Air Europa's. flights available to competitors, to ease concerns over its Iberian. market supremacy, and assuring regulators it will not decrease. competitors on long-haul routes to South America.
IAG said on Wednesday it was glad that the Commission. acknowledged the advantages of airline company consolidation. Its shares. increased more than 5% on anticipation that the ITA offer approval. made its takeover of Air Europa more likely to be offered the. thumbs-up.
IAG has 50% of slots at Madrid's primary airport and 47% at. Barcelona's primary airport, according to an analysis of IBA data.
Executives stress that the Commission will make demands that. are almost impossible to fulfill, stopping dealmaking.
The alternative to debt consolidation happening is that. airline companies will continue to be funded by governments, and that's. simply even worse,? easyJet CEO Johan Lundgren informed .
BUDGET PLAN PROVIDERS
Other experts indicate the rise of affordable providers as an. location overlooked by competition authorities.
In Lufthansa's ITA purchase, numerous have actually indicated Ryanair's. supremacy in Italy, where it has a more than 40% market share.
But competition authorities had not factored the Irish. budget airline company into their evaluations because they do not. consider Lufthansa and ITA to be direct rivals.
Ryanair uses more flights than any other airline in Europe. with 11.49% of the overall, an IBA analysis programs. Lufthansa and. IAG are simply behind, with 9.54% and 8.2% respectively.
(source: Reuters)