2025-11-14 23:47

Tariff rollback includes beef, tomatoes, bananas amid inflation concerns Trade deals with Argentina, Ecuador, Guatemala, El Salvador to eliminate tariffs Democrats criticize Trump for inflation linked to tariffs WASHINGTON, Nov 14 (Reuters) - U.S. President Donald Trump on Friday rolled back tariffs on more than 200 food products, including such staples as coffee, beef, bananas and orange juice, in the face of growing angst among American consumers about the high cost of groceries. The new exemptions - which took effect retroactively at midnight on Thursday - mark a sharp reversal for Trump, who has long insisted that the sweeping import duties he imposed earlier this year are not fueling inflation. Sign up here. "They may in some cases" raise prices, Trump said of his tariffs when asked about the move aboard Air Force One on Friday evening. But he insisted that overall, the U.S. has "virtually no inflation." Democrats have won a string of victories in state and local elections in Virginia, New Jersey and New York City, where growing voter concerns about affordability, including high food prices, were a key topic. Trump also told reporters aboard Air Force One that he would move forward with a $2,000 payment to lower- and middle-income Americans that would be funded by tariff revenues next year sometime. "The tariffs allow us to give a dividend if we want to do that. Now we're going to do a dividend and we're also reducing debt," he said. The Trump administration announced framework trade deals on Thursday that, once finalized, will eliminate tariffs on certain foods and other imports from Argentina, Ecuador, Guatemala and El Salvador, with U.S. officials eyeing additional agreements before year's end. Friday's list includes products U.S. consumers routinely purchase to feed their families at home, many of which have seen double-digit year-over-year price increases. It includes over 200 items ranging from oranges, acai berries and paprika to cocoa, chemicals used in food production, fertilizers and even communion wafers. The White House, in a fact sheet on the order, said it came on the heels of "significant progress the President has made in securing more reciprocal terms for our bilateral trade relationships." It said Trump decided certain food items could be exempted since they were not grown or processed in the United States, and given the conclusion of nine framework deals, two final agreements on reciprocal trade, and two investment deals. Ground beef, as of the latest available data for September, was nearly 13% more expensive, according to Consumer Price Index data, and steaks cost almost 17% more than a year ago. Increases for both were the largest in more than three years, dating back to when inflation was nearing its peak under Trump's predecessor, Democrat Joe Biden. Although the U.S. is a major beef producer, a persistent shortage of cattle in recent years has kept beef prices high. Banana prices were about 7% higher, while tomatoes were 1% higher. Overall costs for food consumed at home were up 2.7% in September. The tariff exemptions won praise from many industry groups, while some expressed disappointment that their products were excluded from the exemptions. "Today’s action should help consumers, whose morning cup of coffee will hopefully become more affordable, as well as U.S. manufacturers, which utilize many of these products in their supply chains and production lines," FMI-Food Industry Association president Leslie Sarasin said in a statement. Distilled Spirits Council president Chris Swonger said that excluding spirits from the European Union and Britain "is yet another blow to the U.S. hospitality industry just as the critical holiday season kicks into high gear." "Scotch, Cognac and Irish Whiskey are value-added agricultural products that cannot be produced in the United States," Swonger added. Asked if further changes were planned, Trump told reporters aboard Air Force One, "I don't think it'll be necessary." "We just did a little bit of a rollback," he said. "The prices of coffee were a little bit high, now they'll be on the low side in a very short period." NEW FOCUS ON AFFORDABILITY Trump has upended the global trading system by imposing a 10% base tariff on imports from every country, plus additional specific duties that vary from state to state. Trump has focused squarely on the issue of affordability in recent weeks, while insisting that any higher costs were triggered by policies enacted by Biden, and not his own tariff policies. Consumers have remained frustrated over high grocery prices, which economists say have been fueled in part by import tariffs and could rise further next year as companies start passing on the full brunt of the import duties. The top Democrat on the House of Representatives Ways and Means Committee, Richard Neal, said the Trump administration was "putting out a fire that they started and claiming it as progress." "The Trump Administration is finally admitting publicly what we've all known from the start: Trump's Trade War is hiking costs on people," Neal said in a statement. "Since implementing these tariffs, inflation has increased and manufacturing has contracted month after month." https://www.reuters.com/business/trump-cuts-tariffs-beef-coffee-other-foods-inflation-concerns-mount-2025-11-14/

2025-11-14 23:24

TOKYO, Nov 15 (Reuters) - Japan is considering spending around 17 trillion yen ($110 billion) in new Prime Minister Sanae Takaichi's first stimulus package, the Nikkei newspaper reported on Saturday, underscoring the administration's focus on expansionary fiscal policy. A supplementary budget to fund the package will likely be sized around 14 trillion yen, exceeding that of the previous year, the paper said, a move that may add to Japan's already huge public debt. Sign up here. Since taking office in October, Takaichi has pledged to compile a sizeable package of spending measures to cushion the economic blow from rising living costs, and boost investment in growth areas such as artificial intelligence and semiconductors. The size of the package, which is being worked out by the Ministry of Finance, could change depending on upcoming negotiations among ruling parties, the Nikkei said. The package will include bigger exemptions on income tax, tax cuts on gasoline, subsidies to slash utility bills and funds appropriated to prefectures for spending on food aid, it said. The government was not immediately available to comment. The administration is expected to finalize the package with approval by the cabinet on November 21. ($1 = 154.53 yen) https://www.reuters.com/world/asia-pacific/japan-considering-stimulus-package-sized-around-17-trln-yen-nikkei-says-2025-11-14/

2025-11-14 23:17

MILAN, Nov 14 (Reuters) - Italian gas grid operator Snam (SRG.MI) , opens new tab said on Friday it has scrapped plans to acquire a minority stake in Germany's largest independent gas transmission firm, amid resistance from the German economy ministry. Berlin's concerns over the 920-million-euro ($1.1 billion) transaction stem from the presence of China's State Grid as an indirect investor in Snam, Reuters reported earlier in the day, citing two sources familiar with the matter. Sign up here. The Italian group signed a deal in April to buy a 24.99% stake in Open Grid Europe's (OGE) owner Vier Gas Holding from Abu Dhabi's Infinity Investments, aiming to enter the German gas market, the biggest in Europe. The agreement was terminated after a prolonged foreign direct investment review by Germany, Snam said in a statement, saying its proposed remedies to secure regulatory clearance were found inadequate by the authorities. The company added that the development will not impact its full-year 2025 financial outlook. Germany's economy ministry had been reviewing the deal since it was agreed. Its resistance reflects European governments taking a tougher stance against Chinese investment in Europe due to security concerns. Snam would not pursue the acquisition "come hell or high water" amid the lengthy approval process, CEO Agostino Scornajenchi previously signalled. Germany blocked an attempt by China's State Grid to buy a stake in power grid operator 50Hertz in 2018. ($1 = 0.8575 euros) https://www.reuters.com/business/energy/italys-snam-set-scrap-german-gas-deal-amid-berlins-concern-over-china-sources-2025-11-14/

2025-11-14 22:53

Nov 14 (Reuters) - Global ratings agency Fitch affirmed Ukraine's long-term foreign currency sovereign credit rating at "restricted default" on Friday, saying it would remain unchanged until the country normalizes relations with most external commercial creditors. As Ukraine's war with Russia nears its fourth year, the prolonged conflict continues to strain the economy, pushing defense spending to about 2.96 trillion hryvnias ($70.86 billion) this year. Sign up here. Talks between Ukraine and holders of its GDP warrants collapsed for a second time in six months earlier in November, further delaying efforts to restructure the $3.2 billion in bond-like instruments. The country's central bank also cut its 2025 GDP growth forecast. "Spending pressures will remain heavy even after the end of the war, with Ukraine likely to retain a large military force," Fitch said. Ukraine is in talks with the International Monetary Fund for a new four-year lending program to replace its existing $15.5 billion arrangement, of which it has already received $10.6 billion. The country is seeking a new IMF program because the one agreed in 2023 assumed the war would end by late 2025, a prospect that remains distant. "Ukraine will remain reliant on external funding sources to cover its sizeable funding needs over the medium term," Fitch said. The agency typically does not assign outlooks to sovereigns with a rating of "CCC+" or below. ($1 = 41.7754 hryvnias) https://www.reuters.com/markets/asia/fitch-retains-ukraines-sovereign-rating-restricted-default-2025-11-14/

2025-11-14 22:30

US sanctioned Lukoil last month over Russia's war on Ukraine US approves talks with Lukoil through Dec 13 on buying assets Sale of assets must ensure complete break from Lukoil WASHINGTON/NEW YORK/LONDON, Nov 14 (Reuters) - The Trump administration on Friday gave clearance to potential buyers to talk to Russia's Lukoil about buying its foreign assets and allowed business dealings with Lukoil's Burgas refinery after Bulgaria moved to seize the plant. The U.S. last month imposed sanctions on Russia's two biggest oil companies, Lukoil (LKOH.MM) , opens new tab and Rosneft (ROSN.MM) , opens new tab, for their help in financing Russia's nearly four-year war in Ukraine. Lukoil has faced growing disruptions to its foreign assets, which account for about 0.5% of global oil production, since the sanctions were imposed. Sign up here. The Treasury Department on Friday issued a set of licenses, one of which authorized companies to talk to Lukoil through December 13 about buying its foreign assets. U.S. WILL ONLY AUTHORIZE DEALS IF ASSETS SEVER LUKOIL TIES The U.S. will only authorize a transaction involving the sale of those assets if it completely severs ties with Lukoil and if the funds from that sale are placed into an escrow account that Lukoil cannot access as long as it is sanctioned. The Treasury Department also allowed transactions until April 29, 2026, involving Lukoil entities in Bulgaria. The Bulgaria Energy Ministry said in a statement that the U.S. move "is a direct result of the intensive actions, negotiations, and diplomatic talks we have been conducting since day one to ensure stability, predictability, and peace of mind for Bulgarian citizens and businesses." Britain's Office of Financial Sanctions Implementation has also granted licenses for Lukoil Bulgaria EOOD and Lukoil Neftochim Burgas AD. The latter manages the country's only oil refinery at Burgas. "These authorizations support the energy security of our partners and allies without benefiting the Russian government," a Treasury spokesperson said. Treasury also issued a license to allow transactions with the Caspian Pipeline Consortium and Tengizchevroil projects even if they involve the sanctioned oil companies. CPC is a pipeline bringing more than 1.6 million barrels per day of crude, or 1.5% of global oil, from Kazakhstan's oil fields developed by U.S. and EU majors Chevron, Exxon Mobil, Eni, Shell, TotalEnergies and Lukoil. It crosses Russian territory and can be fully shut by Moscow if it decides it wants to retaliate against Western sanctions. BUYER INTEREST IN LUKOIL ASSETS Reuters reported on Thursday that U.S. private equity firm Carlyle is exploring options to buy Lukoil's foreign assets, according to sources familiar with the situation. Carlyle was looking to apply for a U.S. license allowing it to buy the assets before beginning due diligence, one of the sources had said. Analysts had said Carlyle was better suited to get U.S. approval to buy the assets, compared with Swiss commodities trader Gunvor, which had earlier walked away from an agreement with Lukoil after Treasury called the trading house the Kremlin's "puppet" in a post on social media. Gunvor strongly disagreed with that characterization. Carlyle declined to comment on Friday. Other firms around the globe have also been considering bids for parts of the Lukoil empire, Reuters reported on Wednesday. These include Kazakhstan's state firm KazMunayGas (KMGZ.KZ) , opens new tab and European oil major Shell (SHEL.L) , opens new tab, sources said. Lukoil has three refineries in Europe, as well as stakes in oilfields in Kazakhstan, Uzbekistan, Iraq, Mexico, Ghana, Egypt and Nigeria. It also has hundreds of retail fuel stations around the world, including in the United States. Lukoil's international assets are estimated to be worth about $22 billion, based on 2024 filings. Jeremy Paner, a partner at Hughes and Hubbard law firm and a former Treasury official, said the license that authorizes negotiations with Lukoil allows companies to enter into binding memorandums of understanding and other agreements, but the actual acquisition of the assets must be separately authorized by Treasury through a specific license. https://www.reuters.com/business/energy/us-paves-way-talks-sale-lukoils-foreign-assets-2025-11-14/

2025-11-14 22:11

FAA had earlier frozen flight cuts at 6% as shutdown disruptions declined Airlines cancel far fewer flights than ordered FAA still short of 3,500 air traffic controllers WASHINGTON, Nov 14 (Reuters) - The Federal Aviation Administration said Friday it halved a requirement that U.S. airlines reduce domestic flights at 40 major airports from 6% to 3% starting Saturday to address air traffic control safety concerns after the end of the government shutdown. Airlines have been pushing for the FAA to end the required cuts entirely and were largely not in compliance with the FAA order that required the 6% cut on Friday. It remains to be seen if they will be in compliance with the 3% order. Sign up here. "The 3% reduction will remain in place while the FAA monitors system performance throughout the weekend and evaluates whether normal operations can resume," the FAA said. Cirium, an aviation analytics firm, said airlines canceled just 2% of overall flights Friday, down from 3.5% on Wednesday and Thursday. On Friday, air traffic controllers and other FAA employees began receiving back pay equal to about 70% of what they are owed excluding overtime. Airlines have been privately making the case to the FAA that it is time to end the cuts and some said earlier they plan to cut few or no flights on Saturday, officials told Reuters. The FAA opted on Wednesday to ease those required cancellations after disruptions due to air traffic control absences declined dramatically as Congress voted to reopen the government after a 43-day shutdown. The FAA had initially planned to hike the cuts to 8% on Thursday and 10% on Friday. Separately, a group of House Democrats led by Representative Rick Larsen, the ranking member of the Transportation and Infrastructure Committee, asked the administration on Friday to turn over the specific safety data and how it compares to the last six months. "It appears that the administration made this decision without adequate coordination with key aviation stakeholders," the Democrats wrote. United Airlines (UAL.O) , opens new tab said it had canceled 134 flights for Friday, or almost 3% of its flights, after cancelling 222 flights on Thursday. The FAA is about 3,500 air traffic controllers short of targeted staffing levels. Many had been working mandatory overtime and six-day weeks even before the shutdown led to them working without pay. Air traffic absences led to tens of thousands of flight cancellations and delays since October 1, when the 43-day shutdown began. https://www.reuters.com/sustainability/sustainable-finance-reporting/airlines-urging-faa-drop-flight-cuts-controllers-get-paid-2025-11-14/