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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 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
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The US has a glut of natural gas that is not being used by Asia or Europe.
By limiting Gulf exports, the war with Iran has increased prices for natural gas traded globally. Gas is so plentiful in West Texas that some producers have to pay for it to be taken away. Iran's attacks against Gulf energy producers and the?war have stopped 20% of the global supply of?liquefied?natural?gas. The Qatari LNG plants have been damaged, and tankers are unable to pass through the Strait of Hormuz at the Gulf's entrance because of Iranian threats of firing on them. The global gas market has been split by the crisis: import-dependent countries in Europe and Asia are scrambling to find scarce supplies while the United States, the world's biggest gas producer, consumer, and exporter, remains overflowing with fuel and prices remain near 17-month-lows. The U.S. is unable to export gas because its pipelines are full. LNG plants are also at capacity. This has created a more dramatic split than the oil market. Gas futures in Louisiana, the U.S. Henry Hub benchmark, have fallen by up to 12% since the start of the war against Iran on February 28. Prices have also risen by 84% and 108% globally to $2.52 for a million British thermal unit (mmBtu). The international benchmark Brent crude oil is currently trading at around $111 per barrel while the U.S. standard is $104 per barrel. Both have risen by?more than 50 percent as a result. PAYING FOR GAS TO BE TAKEN AWAY? The United States have enough gas both to satisfy domestic demand as well as to fill LNG export plants, which cool the gas into liquid form. These plants were already nearing their maximum capacity prior to the war. Therefore, no matter how high gas prices are, the U.S. will not be able to export much more LNG. The Permian Basin is the largest shale gas field in the United States. Prices are lower than benchmark futures. Spot gas is available at the Waha hub West Texas has Trade below Zero Gas pipelines from the Permian have been full this year. This means that there is no capacity left to transport fuel. Some producers are paying others to remove it, just like a waste product. According to the latest U.S. Energy Department outlook, U.S. Gas production will continue to rise to meet demand for data centers that are power hungry and supply new LNG export facilities. As oil reserves diminish, the output also increases as oil producers increase their output and their wells produce more gas. At best, additional pipeline capacity will be available in a few months. Bank of America analysts said that "meaningful transport relief?doesn’t appear until late this or early 2027 when it is anticipated that larger pipeline projects will begin," in a recent report. New England is one of those areas that are most exposed to international gas prices. It must import LNG at high costs and burn oil in winter to generate electricity because it lacks the connections to the national grid for gas to meet the heating demand. WINNERS AND LOSSES The firms with the most excess LNG were the best placed to benefit from the price fluctuations caused by the 'Iran War, at least for the short term. Energy firms from around the globe have bought additional cargoes of U.S.-produced LNG to replace the gas that Qatar has canceled. Venture Global is the second largest LNG producer in the United States behind Cheniere Energy. Bob Yawger is the director of energy futures for Mizuho. He said that Venture Global was (relatively new) to the LNG game. They had spot cargoes to sell to the highest bidder. "Suddenly, everyone needs LNG since QatarEnergy is no longer in the picture." Based on the plants that are currently being built, the U.S. capacity for LNG will nearly double in the next five year from 18 bcfd to 35 bcfd. U.S. Gas producers that sell to LNG companies haven't fared as well, because they are selling a large portion of their production?at domestic prices, which, in addition to the near-record output, was held down by a weak?spring market and an abundance of supply in storage. The low U.S. price has even prompted energy companies, like EQT (the second largest U.S. producer of gas behind Expand Energy), to reduce output as they wait for prices and demand to increase later in the year. Jeremy Knop, CFO of EQT, told analysts that "our strategic curtailments serve as a storage method for gas during seasonal low demand periods."
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)
(source: Reuters)