Business

Trump to hit Canada, Mexico and China with tariffs

Published

2 hours ago

2025/02/1

Priyan

US President Donald Trump will impose tariffs of 25% on Mexico, 25% on Canada and 10% on China today [01], says the White House.

But Trump said on Friday that Canadian oil would be hit with lower tariffs of 10%, which could take effect later, on 18 February.

The president also said he planned to impose tariffs on the European Union in the future, saying the bloc had not treated the US well.

White House press secretary Karoline Leavitt said the Canada and Mexico duties were in response to “the illegal fentanyl that they have sourced and allowed to distribute into our country, which has killed tens of millions of Americans”.

Trump has also repeatedly said the move was to address the large amounts of undocumented migrants that have come across US borders as well as trade deficits with its neighbours.

Ms Leavitt told a news briefing at the White House on Friday: “These are promises made and promises kept by the President.”

During the election campaign, Trump threatened to hit Chinese-made products with tariffs of up to 60%, but held off on any immediate action on his first day back in the White House, instead ordering his administration to study the issue.

US goods imports from China have flattened since 2018, a statistic that economists have attributed in part to a series of escalating tariffs that Trump imposed during his first term.

Earlier this month, a top Chinese official warned against protectionism as Trump’s return to the presidency renews the threat of a trade war between the world’s two biggest economies – but did not mention the US by name.

Addressing the World Economic Forum in Davos, Switzerland, Ding Xuexiang, Vice Premier of China, said his country was looking for a “win-win” solution to trade tensions and wanted to expand its imports.

China, Canada and Mexico are the top US trading partners, accounting for 40% of the goods imported into the US last year, and fears are rising that the new steep levies could kick off a major trade war as well as push up prices in the US.

Canadian Prime Minister Justin Trudeau said on Friday: “It’s not what we want, but if he moves forward, we will also act.”

Canada and Mexico have already said that they would respond to US tariffs with measures of their own, while also seeking to assure Washington that they were taking action to address concerns about their US borders.

The BBC has reached out to the Chinese embassy in the US for comment.

If US imports of oil from Canada and Mexico are hit with levies it risks undermining Trump’s promise to bring down the cost of living.

Tariffs are an import tax on goods that are produced abroad.

In theory, taxing items coming into a country means people are less likely to buy them as they become more expensive.

The intention is that they buy cheaper local products instead – boosting a country’s economy.

But the cost of tariffs on imported energy could be passed on to businesses and consumers, which may increase the prices of everything from petrol to groceries.

Around 40% of the crude that runs through US oil refineries is imported, and the vast majority of it comes from Canada.

On Friday, Trump agreed tariff costs are sometimes passed along to consumers and that his plans may cause disruption in the short-term.

Mark Carney, the former head of Canada’s and England’s central banks, told BBC Newsnight on Friday that the tariffs will hit economic growth and drive up inflation.

“They’re going to damage the US’s reputation around the world,” said Carney, who is also in the running to replace Prime Minister Trudeau as leader of Canada’s Liberal Party.

[BBC]

All News Advertisement

Business

Deviations from inflation target come under COPF scrutiny

Published

11 hours ago

2025/02/1

Thilina Walpola

COPF deliberations under the chairmanship of Dr. Harsha de Silva

By Ifham Nizam

The Committee on Public Finance (COPF) recently discussed the Central Bank of Sri Lanka’s (CBSL) report on deviations from the inflation target, as outlined in the Monetary Policy Framework Agreement (MPFA), for the second and third quarters of 2024.

This report was presented in accordance with Section 26(5) of the Central Bank Act No. 16 of 2023, which requires CBSL to submit a report to parliament via the Minister of Finance, if inflation deviates from the specified target for two consecutive quarters.

According to CBSL, the year-on-year headline inflation rate, as measured by the Colombo Consumer Price Index, remained below the MPFA’s specified inflation target of 5% ± 2% for both quarters, recording 1.4% and 0.8%, respectively. As a result, the Central Bank was obligated to report this deviation to parliament.

During the discussion, special attention was also given to measures for supporting and strengthening the Small and Medium Enterprises (SME) sector. Under CBSL’s relief program, borrowers with outstanding loans of less than Rs. 25 million have been granted a 12-month repayment extension, those with loans between Rs. 25 million and Rs. 50 million received a 9-month extension, while all other borrowers were granted a 6-month extension.

Deputy Minister Chaturanga Abeysinghe, who participated in the COPF session, commented on the importance of balancing inflation control with economic stability. He stated:

“Our priority is to maintain a proper equilibrium between inflation control and economic stabilization. The SME sector is a fundamental pillar of our economy, and our focus is not only on providing short-term relief but also on ensuring their long-term resilience.”

CBSL officials further elaborated on the key factors influencing inflation deviations, including electricity tariffs, domestic fuel prices, food prices, appreciation of the Sri Lankan rupee against the US dollar, private sector credit expansion, interest rates and the overall effectiveness of monetary policy transmission.

The session was chaired by Dr. Harsha de Silva, with the participation of Deputy Minister Chaturanga Abeysinghe, several Members of Parliament and CBSL officials. The discussion also highlighted the importance of holding such reviews regularly to assess monetary policy performance and economic progress.

Business

Construction related counters active for second consecutive day

Published

11 hours ago

2025/02/1

Thilina Walpola

By Hiran H.Senewiratne

Construction related counters were notably active for the second consecutive day yesterday after President Anura Kumara Dissanayake’s assurance that a considerable amount of funds will be allocated in the forthcoming budget to the sector. This gave some impetus to the sector despite witnessing profit- takings at month end, stock market analysts said.

Amid those developments both indices moved upwards slightly. The All Share Price Index went up by 7.5 points while S and P SL20 rose by 1.59 points. Turnover stood at Rs 5.1 billion with 12 crossings.

Those crossings were reported in HNB, which crossed 400,000 shares to the tune of Rs 140 million and its shares traded at Rs 350, Hemas Holdings one million shares crossed to the tune of Rs 114 million and its shares sold at Rs 114, Commercial Bank 700,000 shares crossed for Rs 103 million; its shares sold at Rs 148, Dialog six million shares crossed to the tune of Rs 68.4 million; its shares traded at Rs 22.8, Central Finance 200,000 shares crossed for Rs 44 million; its shares traded at Rs 220, Ambeon Holdings 850,000 shares crossed to the tune of Rs 28.4 million; its shares traded at Rs 33.50.

Hayleys Fabrics 500,000 shares crossed to the tune of Rs 26.75 million; its shares sold at Rs 53.50, Sampath Bank 200,000 shares crossed for Rs 24.1 million; its shares traded at Rs 120.50, Hayleys 3.5 million shares crossed for Rs 21.3 million; its shares traded at Rs 6.10, Access Engineering 516,000 shares crossed for Rs 20.6 million and its shares fetched Rs 40 and Alumax 1.2 million shares crossed to the tune of Rs 20.1 million; its shares traded at Rs 16.80.

In the retail market, companies that mainly contributed to the turnover were; Access Engineering Rs 999 million (26.3 million shares traded), Hayleys Fabrics Rs 197 million (3.6 million shares traded), Browns Investments Rs 166 million (18.4 million shares traded), Commercial Bank Rs 122 million (825,000 shares traded), Softlogic Rs 114 million (18.2 million shares traded) and JKH Rs 111 million (4.9 million shares traded).During the day 197 million share volumes changed hands in 31000 transactions.

It is said that banking, manufacturing and construction sector counters were active. Access Engineering was one of the highest contributors to the market. JKH was also active as manufacturing sector counters were also active during the day.

Union Assurance and Sampath Bank have entered into a bancassurance partnership for Life Insurance products, the company said.

“Union Assurance PLC entered into a long-term referral bancassurance partnership for Life Insurance products with Sampath Bank PLC (“Bank”), on 30 January 2025, consequent to Board approval,” the insurance provider said, according to CSE sources.

Yesterday, the rupee was quoted at Rs 297.30/40 to the US dollar in the spot market, stronger from Rs 297.70/85 to the US dollar the previous day, dealers said, while bond yields were broadly flat.

Stocks were up 0.29 percent. A bond maturing on 15.12.2026 was quoted at 9.00/10 percent, up from 8.95/9.10 percent. A bond maturing on 01.05.2027 was quoted at 9.50/55 percent. A bond maturing on 15.03.2028 was quoted at 10.09/12 percent. A bond maturing on 01.05.2028 was quoted at 10.15/20 percent. A bond maturing on 15.10.2028 was quoted flat at 10.25/35 percent. A bond maturing on 15.09.2029 was quoted at 10.71/76 percent, up from 10.68/75 percent. A bond maturing on 15.10.2030 was quoted at 11.20/25 percent, up from 11.20/24 percent.

Business

Shangri-La Colombo rings in the Chinese New Year with a spectacular lion dance and festive delights

Published

11 hours ago

2025/02/1

Thilina Walpola

Shangri-La Colombo rang in the Year of the Snake with a vibrant and auspicious Chinese New Year celebration on 29th January 2025, bringing tradition, joy and prosperity to all in attendance.

Held at the grand lobby, the event showcased a mesmerizing lion dance, symbolic blessings and cherished Chinese customs, creating a festive atmosphere for guests and colleagues alike. The celebrations began with the lion eye-dotting ceremony, performed at the entrance by Mr. Zal Tarapore, Director of Operations – Shangri-La Colombo, a revered ritual believed to awaken the lions’ spirits and invite good fortune.

The celebration came to life with the dramatic lighting of firecrackers, followed by the powerful rhythm of the lion dance at the hotel’s entrance. The lions then made their way into the lobby, surrounding the stunning Chinese New Year tree, creating an atmosphere of joy and festivity. Shang Palace staff added to the merriment by offering chocolate coins and assorted candies, which the lions later playfully tossed to delighted guests.

A highlight of the morning was the traditional Yee Sang tossing, a cherished custom symbolizing prosperity, unity and success. Guests enthusiastically tossed the ingredients high into the air, making heartfelt wishes for the year ahead. The festivities continued with a delightful selection of food and beverages, ensuring a well-rounded culinary experience.

The celebration extended beyond the lobby as the lions embarked on a blessing route, visiting various departments and outlets within the hotel. From restaurants to the offices, the lions danced their way through, bestowing luck and prosperity at every stop. Employees had prepared ang paos tied with lettuce, a symbolic offering believed to attract wealth, which the lions eagerly “devoured” as part of the traditional ritual.

With a perfect blend of heritage, culture and festivity, Shangri-La Colombo’s Chinese New Year celebration was a memorable start to the Year of the Snake, embracing the spirit of renewal, joy and prosperity.

Exquisite Dining Offers for the Lunar New Year

To complement the festivities, Shangri-La Colombo presents an array of exclusive dining experiences at Shang Palace, available until 6th February 2025. Guests can indulge in special set menus crafted to symbolize prosperity and togetherness. The Grand Fortune Vegetarian Set Menu (LKR 13,888++ per person) and the Abundant Blessing Celebration Set Menu (LKR 18,888++ per person) feature an exquisite selection of flavors, perfect for sharing with loved ones. These limited-time menus are available from 29th January to 4th February 2025.

Adding to the festive spirit, guests can take part in the Ang Pao Wishing Tree, a cherished tradition of giving and appreciation, available until 4th February. Additionally, diners at Shang Palace can enjoy exclusive special offers when their bill reaches LKR 50,000 nett or more, making the celebrations even more rewarding.

The hotel offers a Nian Gao Fish Hamper for LKR 3,888++, combining the traditional sweet glutinous rice cake with fresh fish, symbolizing growth and prosperity. Ideal for gifting or personal indulgence, this hamper is available from 25th January to 6th February 2025 at Shang Palace and Little Gems.