‘Frightening’: US restaurants, producers face tariff whiplash

From European wines to industrial tools, global tariffs launched by US President Donald Trump this week promise to sweep through the world’s biggest economy, impacting everyone from restaurant owners to industrial manufacturers.For Brett Gitter, who makes his quality control instruments in China-based factories, Trump’s planned tariff hike on goods from the country marks a further price surge to potentially startling levels for customers.”I add a surcharge at the bottom of every invoice to cover the expense of the tariff,” he told AFP.”The bottom of the invoice now is going to say 54 percent,” he added, referring to a new rate hitting Chinese imports starting next Wednesday.All of this stacks on an existing 25 percent rate Chinese imports already faced before Trump returned to the presidency, he said, although he tried to absorb some of the earlier duties.”That’s a lot,” he added. “That’s going to alarm people.”This week, Trump unveiled a sweeping 10 percent tariff on most US trading partners, set to take effect on Saturday.He declared that foreign trade practices have caused a “national emergency,” imposing levies to boost his country’s position.Additionally, “worst offenders” that have large trade imbalances with the United States will face even higher rates come April 9.The list covers about 60 partners including the European Union, China, India and Japan.Gitter said his customers, who are American manufacturers too, will have to decide if they want to foot the higher bill.”Other countries that have similar types of product have added tariffs too,” he said. “Where does my product made in China fit, and how bad does it take a hit compared to other competitors?”- ‘Frightening’ -Andrew Fortgang, who runs three restaurants and a wine shop in Oregon, worries about Trump’s additional 20 percent tariff on European Union imports — specifically, wine.The rate is also taking effect April 9.”Probably 25 percent of our revenue is from imported wine,” he told AFP, noting that the steep tariff will bite.For these sales to vanish would be “really frightening,” he said.Beyond that, “everything from oil, to mustards, cheeses, and meats, they are just not fungible, they are not made here,” Fortgang said. “It’s going to add up.”While he expects he would be forced to pass on some costs to consumers by hiking menu prices, high inflation after the Covid-19 pandemic have weighed on customers.”You’ll kind of reach a tipping point,” he said, “on how much you can raise prices.”US Wine Trade Alliance president Ben Aneff called the plan “a disaster for small businesses.””Restaurants really rely on large margins in order to effectively subsidize the rest of their business,” he said, adding that consumers will likely see higher prices.”We import about $4.5 billion worth of (wine) from the EU and US businesses make almost $25 billion from those imports. There is no plug for that hole,” he told AFP.Others in the food and beverages sector have already been hit by Trump’s multiple waves of tariffs.Bill Butcher, a craft brewer in Virginia, earlier saw a shortage of glass bottles for his beers when metals tariffs took effect in March — as industry giants pivoted away from aluminum cans to avoid added costs.Now, he awaits suppliers’ verdict on how much the incoming tariffs on European goods will add to costs for the grains and hops needed in his brews.”It’s just a lot of uncertainty and chaos in our supply chain,” he said.- Hard to relocate -Gitter, whose business is based in New Jersey, has tried “many times” to relocate production to the United States.”There’s a lack of infrastructure in the US to support what we do,” he said.The printed circuit boards used in his instruments, for example, require chips made in East Asia.Will Thomas, whose company transforms coils of steel into metal products, added: “We import from necessity, not desire.”While he is not hard hit by Trump’s partner-based tariffs this week, earlier 25 percent duties on steel and aluminum imports have eaten away at his profits.”I’m hoping this is not another nail in the coffin for foreign supply,” Thomas said.”I would just like the leaders of the countries to be able to sit down and work things out.”

Avec ses droits de douane, Trump foudroie l’économie mondiale

Les principaux partenaires commerciaux des Etats-Unis ont cherché la parade jeudi face au coup de massue infligé par Donald Trump avec les droits de douane, qui a provoqué un vent de panique sur les marchés.Le président américain a balayé les inquiétudes jeudi. “L’économie avait beaucoup de problèmes… C’était un patient malade, (elle) va finir en pleine forme”, a-t-il assuré devant la presse, à bord d’Air Force One.Le Fonds monétaire international (FMI) a néanmoins fait part de son inquiétude.Les annonces de Donald Trump “constituent manifestement un risque important pour les perspectives mondiales, dans une période de croissance molle”, a averti sa directrice, Kristalina Georgieva.Et dans l’immédiat, c’est la gueule de bois à Wall Street, où les ménages américains placent massivement leur épargne.Des milliards de dollars d’actions sont partis en fumée: -5,97% pour l’indice Nasdaq, -4,84% pour l’indice de référence S&P 500, leur pire séance depuis 2020, lors du premier mandat de Donald Trump.Les entreprises fuies par les investisseurs sont celles dont le modèle de production est en péril en raison de leur dépendance aux importations en provenance d’Asie. Comme l’habillement (Gap, -20,38%) ou la tech (Apple, -9,25%). Les nouveaux droits de douane sont particulièrement punitifs pour la Chine (qui, précédemment visée, verra au total les taxes sur ses produits augmenter de 54%), le Cambodge (+49%), le Vietnam (+46%) ou encore le Bangladesh (+37%).Symptôme des fortes inquiétudes sur un ralentissement économique à venir, le pétrole a reculé de plus de 6% et l’or, actif refuge, a connu de nouveaux sommets.La Bourse de Tokyo se repliait de 1,9% dans les premiers échanges vendredi.Cette nouvelle salve arrive après d’autres, plus ciblées: +25% sur l’acier et l’aluminium, mais aussi depuis ce jeudi +25% sur les voitures importées aux Etats-Unis.Le vice-président américain JD Vance a considéré jeudi dans une interview télévisée que la situation sur les marchés “pourrait d’une certaine manière être pire, car c’est une grosse transition”.- Macron esquisse une riposte -Stupéfaits par l’ampleur de l’offensive américaine, qui rebat les cartes du commerce mondial, les principaux partenaires des Etats-Unis se sont globalement abstenus de jeter de l’huile sur le feu.La présidence américaine a laissé la porte ouverte à des négociations et mis en garde contre toute velléité de représailles, menaçant de sanctions supplémentaires.Tandis que le président français, Emmanuel Macron, a esquissé une riposte graduée, la Première ministre italienne, Giorgia Meloni, a estimé qu’il fallait avoir pour objectif de “supprimer” les droits de douane, “pas (de) les multiplier” par une surenchère.Le Lesotho a annoncé jeudi qu’il allait envoyer une délégation gouvernementale aux Etats-Unis pour plaider sa cause.Le petit royaume enclavé d’Afrique australe est censé payer la plus lourde addition, +50% de droits de douane, avec l’archipel français de Saint-Pierre-et-Miquelon, auquel la présidence américaine a réservé un traitement à part. Le Canada, l’une des cibles favorites de Donald Trump, n’a pas subi de nouveaux droits de douane mercredi. Mais le voisin des Etats-Unis paie tout de même un tribut croissant dans la guerre commerciale enclenchée par Washington, avec des surtaxes qui touchent déjà une partie de ses exportations. Ottawa a décidé jeudi de taxer en retour certaines voitures américaines.- Suspension de production -L’offensive protectionniste de la Maison Blanche, sans équivalent depuis les années 1930, passe par un droit de douane généralisé d’au moins 10% sur toutes les importations à partir du 5 avril à 04H01 GMT. Des majorations sont prévues à partir du 9 avril pour les pays jugés particulièrement hostiles en matière commerciale.Les marchandises de l’UE prendront ainsi par exemple 20% de taxes additionnelles, s’ajoutant aux droits de douane déjà en vigueur.Les surtaxes américaines pourraient réduire d'”environ 1%” le commerce mondial de marchandises en volume cette année, a affirmé jeudi la directrice générale de l’Organisation mondiale du commerce (OMC), Ngozi Okonjo-Iweala.La surtaxe sur l’automobile, entrée en vigueur jeudi, a déjà fait ses premières victimes avec l’annonce par Stellantis d’une suspension de la production dans certaines usines au Canada et Mexique. 

Avec ses droits de douane, Trump foudroie l’économie mondiale

Les principaux partenaires commerciaux des Etats-Unis ont cherché la parade jeudi face au coup de massue infligé par Donald Trump avec les droits de douane, qui a provoqué un vent de panique sur les marchés.Le président américain a balayé les inquiétudes jeudi. “L’économie avait beaucoup de problèmes… C’était un patient malade, (elle) va finir en pleine forme”, a-t-il assuré devant la presse, à bord d’Air Force One.Le Fonds monétaire international (FMI) a néanmoins fait part de son inquiétude.Les annonces de Donald Trump “constituent manifestement un risque important pour les perspectives mondiales, dans une période de croissance molle”, a averti sa directrice, Kristalina Georgieva.Et dans l’immédiat, c’est la gueule de bois à Wall Street, où les ménages américains placent massivement leur épargne.Des milliards de dollars d’actions sont partis en fumée: -5,97% pour l’indice Nasdaq, -4,84% pour l’indice de référence S&P 500, leur pire séance depuis 2020, lors du premier mandat de Donald Trump.Les entreprises fuies par les investisseurs sont celles dont le modèle de production est en péril en raison de leur dépendance aux importations en provenance d’Asie. Comme l’habillement (Gap, -20,38%) ou la tech (Apple, -9,25%). Les nouveaux droits de douane sont particulièrement punitifs pour la Chine (qui, précédemment visée, verra au total les taxes sur ses produits augmenter de 54%), le Cambodge (+49%), le Vietnam (+46%) ou encore le Bangladesh (+37%).Symptôme des fortes inquiétudes sur un ralentissement économique à venir, le pétrole a reculé de plus de 6% et l’or, actif refuge, a connu de nouveaux sommets.La Bourse de Tokyo se repliait de 1,9% dans les premiers échanges vendredi.Cette nouvelle salve arrive après d’autres, plus ciblées: +25% sur l’acier et l’aluminium, mais aussi depuis ce jeudi +25% sur les voitures importées aux Etats-Unis.Le vice-président américain JD Vance a considéré jeudi dans une interview télévisée que la situation sur les marchés “pourrait d’une certaine manière être pire, car c’est une grosse transition”.- Macron esquisse une riposte -Stupéfaits par l’ampleur de l’offensive américaine, qui rebat les cartes du commerce mondial, les principaux partenaires des Etats-Unis se sont globalement abstenus de jeter de l’huile sur le feu.La présidence américaine a laissé la porte ouverte à des négociations et mis en garde contre toute velléité de représailles, menaçant de sanctions supplémentaires.Tandis que le président français, Emmanuel Macron, a esquissé une riposte graduée, la Première ministre italienne, Giorgia Meloni, a estimé qu’il fallait avoir pour objectif de “supprimer” les droits de douane, “pas (de) les multiplier” par une surenchère.Le Lesotho a annoncé jeudi qu’il allait envoyer une délégation gouvernementale aux Etats-Unis pour plaider sa cause.Le petit royaume enclavé d’Afrique australe est censé payer la plus lourde addition, +50% de droits de douane, avec l’archipel français de Saint-Pierre-et-Miquelon, auquel la présidence américaine a réservé un traitement à part. Le Canada, l’une des cibles favorites de Donald Trump, n’a pas subi de nouveaux droits de douane mercredi. Mais le voisin des Etats-Unis paie tout de même un tribut croissant dans la guerre commerciale enclenchée par Washington, avec des surtaxes qui touchent déjà une partie de ses exportations. Ottawa a décidé jeudi de taxer en retour certaines voitures américaines.- Suspension de production -L’offensive protectionniste de la Maison Blanche, sans équivalent depuis les années 1930, passe par un droit de douane généralisé d’au moins 10% sur toutes les importations à partir du 5 avril à 04H01 GMT. Des majorations sont prévues à partir du 9 avril pour les pays jugés particulièrement hostiles en matière commerciale.Les marchandises de l’UE prendront ainsi par exemple 20% de taxes additionnelles, s’ajoutant aux droits de douane déjà en vigueur.Les surtaxes américaines pourraient réduire d'”environ 1%” le commerce mondial de marchandises en volume cette année, a affirmé jeudi la directrice générale de l’Organisation mondiale du commerce (OMC), Ngozi Okonjo-Iweala.La surtaxe sur l’automobile, entrée en vigueur jeudi, a déjà fait ses premières victimes avec l’annonce par Stellantis d’une suspension de la production dans certaines usines au Canada et Mexique. 

Trump purges national security team after meeting conspiracist

Donald Trump fired several US national security officials after a far-right conspiracy theorist questioned their loyalty in a White House meeting with the president, US media reported Thursday.Influencer Laura Loomer, who is known for claiming that the 9/11 terrorist attacks were an inside job, laid out her concerns to Trump on Wednesday, the New York Times said in a report followed up by other outlets.The reported purge comes as the National Security Council (NSC) faces scrutiny over a scandal in which a journalist was accidentally added to a chat on the Signal app in which officials discussed air strikes on Yemen.Six people from the NSC were sacked after the Loomer meeting, including three senior officials on the body which advises the president on top foreign policy matters from Ukraine to Gaza, the New York Times said.Loomer confirmed the meeting, but said on X that “out of respect for President Trump and the privacy of the Oval Office, I’m going to decline on divulging any details.”The activist later said she had presented “opposition research” to the Republican president.Asked about the report of the firings, Trump later told reporters: “We’re always going to let go of people — people we don’t like or people that take advantage of or people that may have loyalties to someone else.”Trump described Loomer as a “great patriot” but said she was “not at all” involved with the reported NSC firings.”She makes recommendations… and sometimes I listen to those recommendations,” he told reporters on Air Force One.NSC spokesman Brian Hughes told AFP the council “doesn’t comment on personnel matters.”The 31-year-old Loomer often flew with Trump on his campaign plane during the 2024 election.She sparked accusations of racism when she said on social media that Trump’s Democratic rival Kamala Harris — whose mother was of Indian descent — would make the White House “smell like curry” if she won.In recent days Loomer has repeatedly targeted national security official Alex Wong — who was reportedly not among those sacked — over the so-called “Signalgate” scandal that has rocked the White HouseShe baselessly suggested that he was responsible for accidentally adding Atlantic magazine journalist Jeffrey Goldberg to the chat, even though National Security Advisor Mike Waltz has taken responsibility for the error.Trump has resisted calls to sack Waltz over the issue. Waltz was seen boarding Trump’s helicopter as the president left the White House for a trip to Florida on Thursday.But US media have reported that Waltz is considered by some in Trump’s orbit as too tied to neo-conservative policies, rather than Trump’s “America First” approach.

E.T. no home: Original model of movie alien doesn’t sell at auction

An original model of E.T., created for Steven Spielberg’s beloved film “E.T. the Extra-Terrestrial,” did not find a buyer after being put up for auction, Sotheby’s auction house in New York said Thursday.The piece, a little over a meter high and which had been estimated to fetch between $600,000 and $900,000, comes from the collection of Italian special effects artist Carlo Rambaldi.The three-time Oscar winner — including one for “E.T.” — died in 2012 at the age of 86.”Rambaldi’s beloved ET model is an extraordinary piece of film history,” Sotheby’s vice chair Cassandra Hatton told AFP.”While it did not find a buyer during today’s auction, its significance remains undiminished.”The model offered for sale is one of three used by Spielberg for his 1982 film.In a statement before the auction, Hatton described the model as embodying “the artistry of an era before CGI (computer-generated imagery) took hold, a nostalgic and iconic piece of Hollywood history as captivating as the stories themselves.”Sotheby’s said that a separate E.T. sketch made by Rambaldi had sold Thursday for over $53,000, well above its top-end estimate of $18,000.In 2022, a metallic automaton representing E.T. and also used during the shooting of the successful film was sold for $2.56 million at an auction organized by the American house Julien’s.

Lesotho hardest hit as new US tariffs rattle AfricaFri, 04 Apr 2025 00:25:37 GMT

The small African kingdom of Lesotho said Thursday it would “urgently” send a government delegation to the United States to plead its case after Washington imposed 50-percent tariffs on its imports, the highest for a single nation.Other African countries hit with President Donald Trump’s “reciprocal tariffs” above the new baseline rate of 10 percent include …

Lesotho hardest hit as new US tariffs rattle AfricaFri, 04 Apr 2025 00:25:37 GMT Read More »

Penguin memes take flight after Trump tariffs remote island

Donald Trump’s tariffs have become a black and white issue on social media, where penguin memes have gone viral after he targeted an island inhabited by the flightless birds, but no people.One widely shared image on Thursday showed a penguin in place of Ukrainian leader Volodymyr Zelensky in the Oval Office during his recent row with the US president and Vice President JD Vance.Another meme showed US First Lady Melania Trump gazing up at an emperor penguin — in place of former Canadian Prime Minister Justin Trudeau — while Trump looks askance.Trump’s announcement of worldwide tariffs on Wednesday certainly received an icy reception in many countries.But there has also been bafflement about why some of the most remote parts of the world have been targeted.A case in point: why would Trump slap 10 percent tariffs on all exports from the Heard and McDonald Islands, a barren sub-Antarctic Australian territory without a human population, but four different species of penguin? “The penguins have been ripping us off for years,” Anthony Scaramucci, who was Trump’s former communications chief for 11 days in his first term and is now a vocal critic, joked on X.”Donald Trump slapped tariffs on penguins and not on Putin,” posted US Senate Democratic leader Chuck Schumer, referring to the fact that Russia was not on the US tariff list.The White House said sanctions on Russia over President Vladimir Putin’s war on meant that there was no “meaningful” trade on which to impose tariffs.Trump also caused puzzlement with his 29 percent tariff on Norfolk Island, a tiny Australian territory in the Pacific with a population of a little over 2,000 humans.”I’m not quite sure that Norfolk Island, with respect to it, is a trade competitor with the giant economy of the United States,” Australian Prime Minister Anthony Albanese said.Britain’s remote Falkland Islands — home to one million penguins, and most famous for a 1982 war fought by Britain to repel Argentinian invaders — was hit by 41 percent exports even though the UK only faces 10 percent.Trump’s tariffs have however been no laughing matter for global markets, with US stocks suffering their worst day since the Covid pandemic in 2020.

Where Trump’s tariffs could hurt Americans’ wallets

As global financial markets plunge in the wake of US President Donald Trump’s “Liberation Day” tariffs, Americans must also grapple with the potentially long-lasting impact of the move on household budgets.The tariffs — which are paid in the first instance by US importers — will likely push up the price of many household items in the United States and reduce consumers’ spending power. – Grocery store costs -The US imports a growing share of the fresh fruits and vegetables consumed each year, according to the US Department of Agriculture (USDA).Many of the fresh goods come from Canada and Mexico, two countries not immediately affected by the tariffs announced Wednesday. But other goods will be hit by the stinging duties set to come into effect this month.For example, the United States imports large quantities of bananas from the Latin American countries of Guatemala, Ecuador and Costa Rica, which will all face a 10 percent tariff from April 5.Coffee — around 80 percent of which is imported, according to the USDA — is likely to see a price increase, given that top exporters Brazil and Colombia will also face the new baseline 10 percent rate.Olive oil and alcohol imports from Italy, Spain and Greece will be hit with a new 20 percent levy against the European Union from April 9. And Thai jasmine rice and Indian basmati rice will face tariffs of 36 percent and 26 percent respectively, while Indian shrimp — which the US imports large quantities of — will face the same 26 percent rate. – Electronics and cars -Consumer electronics are also set to be hit with steep tariffs this month, given how many of products are manufactured or assembled in India and China. Despite moves to expand its supply chain, Apple still makes the vast majority of its iPhones in China, through supplier Foxconn, where hardware exports will be hit with a tariff totaling 54 percent from April 9.Apple analyst Ming-Chi Kuo predicted that US buyers of high-end iPhones, who account for as much as 70 percent of sales, are “relatively more accepting of price increases.”On top of the measures announced Wednesday, the Trump administration has also rolled out a 25 percent tariff against vehicles not made in the United States — a step analysts have warned could add thousands to the cost of the average car. – Shoes, clothes -Shares of clothing and textile companies, which rely on cheap labor in countries including China and Vietnam, fell sharply Thursday, with Nike sinking more than 13 percent and Gap tanking more than 20 percent.The new tariffs announced Wednesday mean imports to the United States from China and Vietnam will be taxed at 54 percent and 46 percent respectively. Yale’s Budget Lab estimated the effect of recent tariffs, up to and including Wednesday’s announcement, would cause a 17 percent rise in the cost of clothing and textiles.The think tank calculated that the overall effect on prices of the tariffs announced so far was equivalent to an average per household consumer loss of $3,800.Speaking to reporters on Thursday, Trump insisted that tariffs would make the United States “very rich.””The operation is over,” he said, referring to the recent tariff announcement. “And now we let it settle in.”