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US tariff exemptions spare some commodity trade

  • Market: Chemicals, Metals, Oil products
  • 03/04/25

US president Donald Trump has exempted many energy and mineral products from his new import tariffs, potentially reducing the immediate impact on commodity trade. But the threat of global economic disruption nevertheless sent commodity futures sharply lower today.

The tariffs, announced by Trump on 2 April, include carve-outs for "copper… semiconductors… certain critical minerals, and energy and energy products," the White House said.

The full list of exempted products includes many non-ferrous metals, oil products, base oils, coal and some fertilizer and chemical products.

The 2 April tariffs will not apply to steel and aluminum, cars, trucks and auto parts, which already are subject to separate tariffs. A 25pc tariff on all imported cars and trucks came into force on 3 April, while a 25pc tax on auto parts will take effect on 3 May.

Oil futures fell by over 3pc early in Asian trading hours, despite the exemptions, on concerns about the impact of the new tariffs on the global economy. The June Brent contract on the Ice exchange fell by as much as 3.2pc to a low of $72.52/bl in Asian trading, while May Nymex WTI dropped by 3.4pc to $69.27/bl. Both contracts remained close to their daily lows at 3:15pm Singapore time (07:15 GMT).

Exchange-traded metals prices also fell. The declines came despite a drop in the value of the dollar, which would typically support prices of commodities by making them cheaper for buyers using other currencies.


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Adds Powell comments, CME, GDP data. Houston, 7 May (Argus) — US Federal Reserve policymakers kept their target interest rate flat today for a third time this year, noting that economic "uncertainty" has increased, while signaling they would continue to monitor the impacts of the new US administration's policies before adjusting monetary policy. The Fed's Federal Open Market Committee (FOMC) held the federal funds rate unchanged at 4.25-4.50pc. The Fed has held the target rate unchanged this year after three rate cuts late last year lowered the target rate by 100 basis points from a two-decade high of 5.25-5.5pc after the Fed sharply hiked rates from near zero to battle inflation that topped 9pc in 2022 during the overheated recovery from the Covid-19 slump. "If the large increases in tariffs that have been announced are sustained, they are likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment," Fed chair Jerome Powell told reporters after the decision. "All of these policies are still evolving however, and their effects on the economy remain highly uncertain." Powell also noted that "we are entering a new phase where the administration is entering into beginning talks with a number of our important trading partners and that has the potential to change the picture materially." US economic growth contracted by an annual 0.3pc in the first quarter of 2025 following 2.4pc growth in the fourth quarter. It was the first quarter of negative growth in three years and raised concerns that the US may be entering a recession amid a raft of poor consumer and business confidence surveys. But Powell pointed out that the driver of the first-quarter contraction was a "distortion" caused by a spike in imports, which subtracts from GDP growth, as businesses stocked up on inventory from abroad to get ahead of the tariff impacts. Overall, he said, "the economy is growing at a solid pace, the labor market appears to be solid. Inflation is running a bit above 2pc. So it's an economy that's been resilient and in good shape." The Fed earlier penciled in two likely quarter point rate cuts this year, but the administration of President Donald Trump's chaotic rolling out of tariff and federal spending policies has continued to push back the likelihood of cuts to the federal funds rate, as measured by the CME's FedWatch tool, to the back half of the year. FedWatch, after Wednesday's decision, sees a 23.3pc probability of a quarter point cut at the June Fed meeting, down from 30.5pc Tuesday. Odds of a quarter point cut in July were little changed at 57pc from the prior day. "Ultimately we think our policy rate is in a good place to stay as we await further clarity on tariffs and ultimately their implications for the economy," Powell said. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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IMO GHG pricing falls short on green methanol, ammonia


07/05/25
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07/05/25

IMO GHG pricing falls short on green methanol, ammonia

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US Fed holds rate steady, keeping eye on tariffs


07/05/25
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07/05/25

US Fed holds rate steady, keeping eye on tariffs

Houston, 7 May (Argus) — US Federal Reserve policymakers kept their target interest rate flat today for a third time this year, noting that economic "uncertainty" has increased while signaling they would continue to monitor the impacts of the new US administration's tariffs and other policies before adjusting monetary policy. The Fed's Federal Open Market Committee (FOMC) held the federal funds rate unchanged at 4.25-4.50pc. The Fed has held the target rate unchanged this year after three rate cuts late last year lowered the target rate by 100 basis points from a two-decade high of 5.25-5.5pc. "Uncertainty about the economic outlook has increased further," the FOMC said in its statement. Policymakers "will carefully assess incoming data, the evolving outlook, and the balance of risks" in considering additional adjustments to the target rate, the statement said, echoing language from prior statements. Fed funds futures markets early Wednesday gave a 73pc probability the Fed's first rate cut of 2025 would be at the July meeting. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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India, Saudi Arabia plan two Indian refineries


07/05/25
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07/05/25

India, Saudi Arabia plan two Indian refineries

Mumbai, 7 May (Argus) — India and Saudi Arabia are to collaborate on the development of two integrated refinery and petrochemical plants in India. The plan was announced after Indian prime minister Narendra Modi met Saudi counterpart Mohammed bin Salman in Jeddah on 22 April, as part of the India–Saudi Arabia Strategic Partnership Council. Saudi Arabia in 2019 pledged to invest $100bn in India in several sectors including energy and petrochemicals. No further details have been provided but the projects could be Indian state-run BPCL's planned facility in Andhra Pradesh and oil firm ONGC's refinery project in Gujarat, according to industry participants. Plans for a 1.2mn b/d refinery in Ratnagiri alongside the UAE's Adnoc have been abandoned because of logistical and land acquisition challenges, industry participants say. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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High sulphur prices pressure Indonesian buyers


07/05/25
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07/05/25

High sulphur prices pressure Indonesian buyers

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