Five things to know to start your Wednesday

Trump triggered a trade war and got swift retaliation from Mexico, Canada and China

President Donald Trump escalated international trade tensions on Tuesday by imposing significant tariffs on America’s three largest trading partners, triggering immediate retaliation and causing substantial market volatility. Just after midnight EST, Trump implemented 25% tariffs on Mexican and Canadian imports, with a 10% levy specifically on Canadian energy. He also doubled the previous month’s tariffs on Chinese products to 20%.

The aggressive economic move prompted swift responses from affected countries. Beijing retaliated by imposing tariffs of up to 15% on U.S. farm exports and expanding export controls on approximately two dozen American companies.

Canadian Prime Minister Justin Trudeau strongly condemned the action, declaring, “Today the United States launched a trade war against Canada, their closest partner and ally, their closest friend. At the same time, they are talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense.”

Mexican President Claudia Sheinbaum announced plans for retaliatory tariffs, though she will reveal the specific targeted products on Sunday. The delay suggests a potential openness to diplomatic resolution and de-escalation of the trade conflict.

Trump wants to end US’ $52bn Chip Act subsidy

President Donald Trump called on U.S. lawmakers to eliminate the landmark CHIPS and Science Act, arguing that the semiconductor manufacturing subsidies are ineffective. “The CHIPS act is a horrible, horrible thing. We give hundreds of billions of dollars and it doesn’t mean a thing. They take our money and they don’t spend it,” Trump told Congress, suggesting that any remaining funds should be used to reduce national debt.

Signed by President Joe Biden in August 2022, the law originally allocated $39 billion in subsidies for U.S. semiconductor manufacturing and $75 billion in government lending authority. During Biden’s administration, the Commerce Department successfully convinced five leading-edge global semiconductor firms to establish factories in the United States, addressing national security concerns related to imported chips.

In the final weeks of the Biden presidency, the Commerce Department finalized over $33 billion in awards, including $7.86 billion for Intel, $6.6 billion for Taiwan Semiconductor Manufacturing Co, $4.745 billion for Samsung Electronics, and $6.1 billion for Micron.

Read Also: US Stocks’ Post-Election gains wiped out after Trump tariffs take effect

New Zealand’s central bank governor resigned

Reserve Bank of New Zealand Governor Adrian Orr has resigned in a surprise move, with his role finishing on March 31, three years before his current term ends.

In a statement released on Wednesday, Orr reflected on his tenure: “I leave the role with consumer price inflation at target, and an economy in a cyclical recovery following the long period of COVID-related disruption. The financial system remains sound.”

Orr was recently reappointed for a five-year term effective March 27, 2023. Deputy Governor Christian Hawkesby will serve as acting governor until March 31, with the central bank stating that “from April 1, New Zealand’s finance minister, on recommendation from the RBNZ Board, will appoint a temporary governor for up to six months.” Hawkesby will also chair the monetary policy committee during this period.

Natural gas supply to NLNG dropped by 80%

A new Bloomberg report has revealed a deepening operational crisis at Nigeria Liquefied Natural Gas (NLNG) Limited, with natural gas supplies dramatically dropping by 80 per cent. The facility is now operating at a mere 20 per cent of its total capacity, posing a significant threat to the nation’s revenue projections.

Chief Executive Officer Philip Mshelbila recently disclosed the extent of the operational challenges at the Nigeria International Energy Summit in Abuja. Only two of the facility’s six processing units are currently functional, and three gas pipelines have been rendered inoperable due to persistent vandalism and sabotage.

Dangote sugar lost N193bn in 2024

Dangote Sugar Refinery Plc has reported a substantial financial loss of N192.6 billion for the 2024 financial year, marking a 161 per cent increase from the N73.76 billion loss recorded in 2023.

Despite achieving a 51 per cent revenue increase to N665.69 billion from N441.45 billion in the previous year, ta dramatic surge in production costs hampered its profitability. The cost of sales escalated by 78 per cent to N634.58 billion, compared to N355.15 billion in 2023, resulting in a 64 per cent decline in gross profit to N31.11 billion from N86.3 billion.

Finance costs further compounded the financial strain, increasing by 54 per cent to N301.28 billion in 2024, up from N201.66 billion in the previous year. These escalating expenses significantly contributed to the company’s widening loss before tax, which reached N270.89 billion in 2024, compared to N108.92 billion in 2023.