EU retaliates to US tariffs on steel and aluminium imports

Good morning and welcome again to FirstFT Americas. Right here’s what we’re masking at the moment:

• EU retaliates to US import tariffs

• Donald Trump Jr’s Maga investments

• Japan’s rocky trip to financial normalisation

• The brand new development for infrared saunas

Inside hours of the US authorities introducing 25 per cent tariffs on metal and aluminium imports the EU retaliated with measures that may have an effect on as much as €26bn of American items, together with bourbon whiskey, cosmetics and Harley-Davidson bikes.

Saying the tariffs, which can take impact from April 1, European Fee President Ursula von der Leyen mentioned they had been “unhealthy for enterprise” and would disrupt provide chains, put jobs at stake and push up costs.

The introduction of the EU’s tariffs caps an unsettling 24 hours for the US and its buying and selling companions. Earlier yesterday Donald Trump had threatened to double tariffs on Canadian metal and metallic imports to 50 per cent earlier than rescinding the transfer after Canada suspended a 25 per cent surcharge on exports of energy to the US.

The US administration mentioned the brand new metal tariffs had been a response to “international gamers” that they are saying are accountable for “surging exports” of metals to America which are undermining home producers. The complete record of metal and aluminium merchandise topic to the levies represented $151bn of imported items in 2024, in keeping with an evaluation by Simon Evenett and Johannes Fritz of the St Gallen Endowment for Prosperity By way of Commerce.

Ted Murphy, a accomplice at legislation agency Sidley Austin, mentioned Trump’s sweeping new metals tariffs represented a “huge change” from his method when he launched related levies in 2018. Read more on the new tariffs.

Right here’s what else we’re watching at the moment:

• Financial information: The carefully watched US shopper costs index is launched. Brazil additionally publishes month-to-month inflation information.

• Financial coverage: The Financial institution of Canada introduced its newest rate of interest choice. The BoC’s benchmark in a single day lending price is presently 3 per cent.

• Outcomes: Retailer American Eagle Outfitters publishes fourth-quarter outcomes whereas software program group Adobe updates on its first-quarter efficiency.

• Taoiseach meets Trump: Eire’s chief Micheál Martin meets the president on the White Home St Patrick’s Day celebrations.

5 extra high tales

1. The US is to renew deliveries of weapons and ammunition to Ukraine and finish its suspension of intelligence-sharing after Kyiv accepted a proposal for a right away 30-day ceasefire in its conflict with Russia. The proposed ceasefire, which nonetheless must be agreed by Russia, capped a number of hours of talks between US and Ukrainian officers within the Saudi Arabian metropolis of Jeddah. Here’s more on what was agreed.

• Reside occasion: Be a part of FT specialists on March 27 for a subscriber-only webinar, as they focus on Ukraine’s future with Russia’s full-scale invasion getting into its fourth 12 months. Register for free.

2. The US Home of Representatives has narrowly handed laws to maintain the federal authorities funded till the top of September. The invoice now heads to the Senate, the place it’ll require the backing of no less than eight Democrats to safe passage. If it fails to cross by Friday, when present funding expires, the government will shut down.

3. Executives on the greatest US airways yesterday warned of a slowdown in home demand, prompting a few of them to slash their income and earnings expectations for the primary quarter within the newest signal of waning shopper confidence. The feedback by American Airways, Delta Air Strains, Southwest Airways and United Airways triggered a sell-off of airline stocks.

4. Palantir’s Alex Karp has been catapulted to close the highest of the wealthiest US tech firm bosses after the unorthodox chief govt bought $1.9bn price of inventory within the information intelligence group. Karp has made a fortune due to a 350 per cent surge in Palantir’s share worth final 12 months, which made it the best-performing stock in the S&P 500.

5. Greater than half of the world’s most populated cities are getting wetter, in keeping with new analysis on how water patterns are present process dramatic shifts in city areas as local weather change intensifies the atmospheric results. Learn extra on the tutorial examine, conducted on behalf of aid group WaterAid.

Immediately’s huge learn

Since his father’s 2024 election victory, Donald Trump Jr has joined forces with a small group of financiers who’re dedicated to the president’s imaginative and prescient of America. This implies firms that promote environmental, social and governance or range, fairness and inclusion are out — and investments based mostly on “entrepreneurship, innovation and progress” are in. “Since 2021 I’ve been a vocal proponent of the parallel economic system,” the president’s oldest son told the FT.

We’re additionally studying . . . 

• Elon Musk: The fee for Donald Trump of maintaining the world’s richest man by his facet is growing, argues Edward Luce.

• ‘We have now to rebuild our nation’: The group behind Donald Trump’s economic shock therapy aiming to radically reshape the world’s largest economic system.

• Taking on America’s mantle: If Europe doesn’t mobilise rapidly in its personal defence, liberal democracy might founder altogether, writes Martin Wolf.

• Daylight saving: Altering the clocks doesn’t prolong the sunshine accessible to us, writes Anjana Ahuja, and it’s time we abolished the twice-yearly switch.

Chart of the day

Japan is present process its greatest financial inflection in over three many years that has seen costs and rates of interest rise. Whereas many different nations have fought to maintain inflation down, in Japan its return has been inspired. Policymakers goal to foster a virtuous cycle of rising costs and wages that might spur demand and generate average and regular progress. However, regardless of some optimistic indicators, it has been a bumpy ride.

Take a break from the information . . . 

The likes of Jack Dorsey, Cristiano Ronaldo, Gwyneth Paltrow and Dave Asprey search self-optimisation with infrared longevity therapies — compact, next-generation saunas the place the recent field efficiency comes from a spectrum of crimson and infrared gentle. HTSI explores some of the hottest options.