WASHINGTON: Unswayed by Republican warnings of a trade war, President Donald Trump ordered steep new tariffs on steel and aluminum imports to the US on Thursday, vowing to fight back against an “assault on our country” by foreign competitors. The president said he would exempt Canada and Mexico as “a special case” while negotiating for changes to the North American Free Trade Agreement.
The new tariffs will take effect in 15 days, with America’s neighbors indefinitely spared “to see if we can make the deal,” Trump said. He suggested in an earlier meeting with his Cabinet that Australia and “other countries” might be spared, a shift that could soften the international blow amid threats of retaliation by trading partners.
Those “other countries” can try to negotiate their way out of the tariffs, he indicated, by ensuring their trade actions do not harm America’s security.
Surrounded by steel and aluminum workers holding hard hats, Trump cast his action as necessary to protect industries “ravaged by aggressive foreign trade practices. It’s really an assault on our country. It’s been an assault.”
His move, an assertive step for his “America First” agenda, has rattled allies across the globe and raised questions at home about whether protectionism will impede US economic growth. The president made his announcement the same day that officials from 11 other Pacific Rim countries signed a sweeping trade agreement that came together after he pulled the US out of the Trans-Pacific Partnership last year.
Though he focused on workers and their companies in his announcement, Trump’s legal proclamation made a major point that weakened steel and aluminum industries represent a major threat to America’s military strength and national security.
The former real estate developer said US politicians had for years lamented the decline in the steel and aluminum industries but no one before him was willing to take action.
Despite a week of furious lobbying against his plan by Republican lawmakers and some of his own advisers, Trump said he would go ahead with penalty tariffs of 25 percent on imported steel and 10 percent on aluminum. But he also said the penalties could “go up or down depending on the country, and I’ll have a right to drop out countries or add countries. I just want fairness.”
Century Aluminum Chief Executive Michael Bless said the tariffs would allow his company, which produces high-purity aluminum used in military aircraft, to recall about 300 workers and restart idled production lines at its smelter in eastern Kentucky by early 2019. And Trump took note of US Steel’s announcement that it planned to ramp up activity at its plant in Granite City, Illinois, and recall about 500 employees because of the new tariffs.
But there was political criticism aplenty, especially from Trump’s own Republican Party.
House Speaker Paul Ryan, appearing with Home Depot employees in Atlanta, warned of “unintended consequences.” And Sen. Ron Johnson of Wisconsin called the tariffs “a very risky action” that could put agricultural and manufacturing jobs at risk.
“I’m not sure there are any winners in trade wars,” said Johnson, who once ran a plastics manufacturing business in his home state.
Democratic Sen. Dick Durbin of Illinois said Trump’s action was “like dropping a bomb on a flea” and could carry “huge unintended consequences for American manufacturers who depend on imported materials.”
Business leaders, too, sounded their alarm about the potential economic fallout, warning that American consumers would be hurt by higher prices. They noted that steel-consuming companies said tariffs imposed in 2002 by President George W. Bush ended up wiping out 200,000 US jobs.
“Tariffs are taxes, and the American taxpayer will pay the cost of a trade war,” said Cody Lusk, president and CEO of the American International Automobile Dealers Association. “Even with limited exemptions, tariffs will raise the sale prices of new vehicles.”
Stocks ended the day higher after the announcement, with investors relieved by the carved out exceptions for key allies.
At the White House, an upbeat Trump chatted with the steelworkers, invited them to the Oval Office and autographed a hard hat. He invited some of the workers to speak from the presidential podium, and several said that excessive “dumping” of foreign steel and aluminum had negatively affected their jobs and families.
The European Union warned before the announcement that it was ready to retaliate with counter-measures against iconic US products such as Harley Davidson motorcycles, Levi’s jeans and bourbon.
EU Trade Commissioner Cecilia Malmstrom tweeted after Trump’s announcement that “the EU should be excluded from these measures.” Malmstrom said she would be meeting with US Trade Representative Robert Lighthizer in Brussels on Saturday.
The British government said tariffs “are not the right way to address the global problem of overcapacity” and said it would work with EU partners “to consider the scope for exemptions outlined today.”
Canadian Foreign Minister Chrystia Freeland, meanwhile, called the announcement a “step forward” and said Canadian officials had exerted tremendous efforts to get the exemption. “That Canada could be seen as a threat to US security is inconceivable,” she said.
The exemptions for Canada and Mexico could be ended if talks to renegotiate NAFTA stall, the White House said. The talks are expected to resume early next month.
The run-up to Thursday’s announcement included intense debate within the White House, pitting hard-liners against free trade advocates such as outgoing economic adviser Gary Cohn. Recent weeks have seen other departures and negative news stories that have left Trump increasingly isolated, according to senior officials speaking on the condition of anonymity to discuss internal discussions.
Trump orders stiff trade tariffs, unswayed by grim warnings
Trump orders stiff trade tariffs, unswayed by grim warnings
US Senate Republicans pass measure to move forward on Trump’s tax cuts
- House Republicans now must weigh Senate’s work
- Plunging stock market hovers over fiscal outlook
WASHINGTON: The US Senate approved a Republican budget blueprint early on Saturday that aims to extend trillions of dollars worth of President Donald Trump’s 2017 tax cuts and sharply reduce government spending.
The 51-48 vote, following a late-night legislative session, unlocks a maneuver called budget reconciliation that will allow Republicans to bypass the Senate’s filibuster — a rule that imposes a 60-vote threshold on most legislation — and pass Trump’s tax, border security and military priorities later this year without Democratic votes.
“Tonight, the Senate took one small step toward reconciliation and one giant leap toward making the tax cuts permanent, securing the border, providing much-needed help for the military and finally cutting wasteful Washington spending,” Senate Budget Committee Chairman Lindsey Graham said.
Two Republicans — Senators Susan Collins and Rand Paul — joined Democrats in opposing the measure.
The Senate’s action sent the measure on to the Republican-led House of Representatives, which is expected to take it up next week.
Non-partisan analysts say the Trump agenda, if enacted, would add about $5.7 trillion to the federal government’s debt over the next decade. Senate Republicans contend the cost is $1.5 trillion, saying that the effects of extending existing tax policy that was scheduled to expire at the end of this year should not be counted in the measure’s cost.
The measure also aims to raise the federal government’s debt ceiling by $5 trillion, a move Congress has to make by summer or risk defaulting on $36.6 trillion in debt. It aims to partly offset the deficit-raising costs of tax cuts by cutting spending. Democrats have warned that Republican targets would imperil the Medicaid health insurance program for low-income Americans.
Republicans warned that allowing the 2017 tax cuts to expire would hit Americans hard, imposing a 22 percent tax hike on the average taxpayer. The cuts, Trump’s signature legislative achievement of his first term, reduced the top corporate tax rate to 21 percent from 35 percent, a move that is not set to expire.
The remainder of the cuts, for individual Americans, were set to expire, a decision made to limit the 2017 bill’s deficit-raising effects.
“Donald Trump has betrayed the American people. Tonight, Senate Republicans joined him in that betrayal. In voting for this bill, Senate Republicans sided with billionaires against the middle class, in total obeisance to Donald Trump,” Senate Democratic leader Chuck Schumer of New York said after the vote.
BRUTAL SELL-OFF
Hanging over the debate, which began late on Thursday, was a brutal stock market sell-off following Trump’s sweeping new trade tariffs, which economists warned will drive up prices and could trigger a recession.
Some Republicans said economic uncertainty could slow the path forward for Trump’s agenda if market weakness continues.
“My concern is, if we are having the kind of conversation today three weeks from now, then the distraction will be so great that it will slow down what we try to do,” Republican Senator Thom Tillis told reporters.
During a six-hour “vote-a-rama” session to consider amendments, Senate Republicans altered the blueprint to add a deficit-neutral reserve fund to help protect Medicaid and the Medicare health care program for the elderly.
Republicans also turned away dozens of Democratic amendments aimed at rescinding Trump trade tariffs and protecting Medicaid, Medicare, nutrition support for low-income women and children, the Social Security retirement system, veterans benefits and other government assistance.
Republican Senators Lisa Murkowski, Josh Hawley and Collins backed Democratic measures to safeguard social safety-net programs, but their support was not enough.
If House Republicans get their way, Congress could enact $2 trillion in spending cuts by overhauling Medicaid and food assistance programs and by eliminating popular environmental policies.
The budget blueprint would also make room for tighter security measures along the US border with Mexico, fund administration efforts to significantly ramp up immigrant deportations and bolster US military readiness.
Saudi banks extend $2.4bn in home loans in Feb.; demand broadens across nationals and expats
RIYADH: Saudi Arabia’s banks issued SR8.91 billion ($2.37 billion) in new residential mortgages to individuals in February — a 28.33 percent annual increase, according to official data.
Figures from the Saudi Central Bank, also known as SAMA, show that apartment lending recorded the highest growth during this period, rising by 46.45 percent to SR2.9 billion.
While houses continue to dominate residential real estate financing with a 62.6 percent share, this is down from 65.24 percent in February 2024 as demand gradually shifts toward apartments.
House loans posted strong growth of 23.05 percent, reaching SR5.57 billion, yet land financing stayed modest at SR436 million, with a minimal increase of 0.61 percent.
This momentum comes as Saudi Arabia pushes toward its Vision 2030 target of achieving 70 percent home ownership.
Demand is being fueled by citizens and a growing expatriate population. A March report by Knight Frank revealed that 72 percent of Saudis and expats aspire to own homes, with the figure soaring to 93 percent among high-income citizens earning more than SR50,000 per month. Among expats, 77 percent now express a desire to buy property in the Kingdom.
Despite the strong demand, affordability remains a challenge, according to Knight Frank — particularly in cities such as Riyadh, where apartment prices have climbed 75 percent since 2019 and villa prices are up 40 percent.
To address this, Saudi authorities are rolling out a wave of regulatory and urban planning reforms. In March, the Royal Commission for Riyadh City and the Council of Economic and Development Affairs unveiled initiatives aimed at stabilizing prices and expanding access to homeownership.
These include lifting restrictions on land transactions and development in key zones of northern Riyadh, unlocking 81.5 sq. km of land for new housing and commercial projects.
At the time, Finance Minister Mohammed Al-Jadaan said the move was expected to reduce price volatility, with new plots priced at no more than SR1,500 per sq. meter and made available to Saudi citizens over the age of 25.
As part of its broader Vision 2030 strategy, Saudi Arabia has also been liberalizing real estate laws to attract more foreign investment, especially in fast-growing sectors such as tourism, housing, and special economic zones.
In 2024, officials confirmed that new regulations are underway to expand foreign ownership rights in strategic projects such as NEOM and the Red Sea.
While foreigners can already own residential property in specific zones and access 99-year leases according to the Real Estate Saudi platform, most residential mortgages are concentrated among Saudi nationals, supported by programs like Sakani and Dhamanat.
Foreign investment in Saudi Arabia’s commercial real estate sector is subject to specific regulations and approval processes. Foreign investors are llowed to own real estate necessary for conducting their licensed business activities, including property for offices and employee accommodation, provided they obtain the requisite approval from the Ministry of Investment.
Additionally, for real estate intended for investment purposes — such as buying, selling, or leasing — the investment must meet a minimum threshold of SR30 million, with a commitment to develop the property within five years, according to the Saudi Embassy website in the US.
These measures ensure that foreign investments align with Saudi Arabia’s broader economic objectives and development plans.
Lebanon central bank must counter money laundering and terrorist financing, new governor says
BEIRUT: Lebanon’s central bank must focus on fighting money laundering and terrorist financing, its newly appointed governor said on Friday, as he began the job of salvaging the fragile banking sector and getting it off a global watchdog’s “grey list.”
The Financial Action Task Force placed Lebanon on its list of countries requiring special scrutiny last year in a move many have worried could discourage the foreign investment it needs to recover from a 2019 financial crisis that is still felt today.
Terrorist financing and money laundering are top concerns for the US, which wants to prevent Hezbollah from using the Lebanese financial system and cash flows through the country to re-establish itself.
Karim Souaid, who was appointed last week, listed his main priorities during his official handover with the outgoing acting central bank governor who preceded him.
“The most important of these are combating money laundering and terrorist financing, and identifying and disclosing politically and financially influential individuals, their relatives, and those associated with them,” he said.
Souaid replaces interim chief Wassim Mansouri, who has been overseeing the bank since long-serving governor Riad Salameh’s tenure ended in disgrace in 2023 due to the financial implosion and accusations of embezzlement, which Salameh denies.
Triggered by widespread corruption and profligate spending by the ruling class, the financial crisis in Lebanon brought the banking system to a standstill, creating an estimated $72 billion in losses.
Souaid said the central bank would work to reschedule public debt and pay back depositors, while calling upon private banks to gradually raise their capital by injecting fresh funds.
Those banks unable or unwilling to do so, should look to merge with other institutions. Otherwise, they would be liquidated in an orderly manner, with their licenses revoked and depositors’ rights protected, he said.
Souaid also pledged to safeguard the central bank’s independence from political pressure and prevent conflicts of interest.
“I will ensure that this national institution remains independent in its decision-making, shielded from interference, and grounded in the core principles of transparency and integrity,” he said.
Office returns: Up to 59% of firms to increase investment in workplace fit-outs by 2030, says JLL
RIYADH: The global office sector is rebounding as companies scale back hybrid employment options, increasing demand for workspaces, a new survey shows.
The study by JLL, featured in the Global Office Fit-Out Costs Guide 2025, reveals that 59 percent of organizations are increasing investments in design and fit-outs.
The report, which analyzes data from 68 cities across 40 countries, also highlights that office fit-out costs have risen in the past 12 months across all regions surveyed, with varying degrees of increase.
According to JLL, as in previous years, the highest fit-out costs are found in the US, Canada, and the UK, as well as Switzerland, Saudi Arabia, and the UAE.
Singapore and Japan also feature high in the list.
This correlates with the global office spaces market, which was valued at $3.1 trillion in 2022 and is projected to grow to $4.9 trillion by 2032. According to Allied Market Research, this represents a compound annual growth rate of 4.6 percent.
It also aligns with the growth of the office space market fueled by a rise in infrastructure projects for the commercial sector, including the development of new office buildings, business parks, and the renovation of workplaces in urban areas.
In a statement reflecting on the study, JLL’s CEO of Project and Development Services at Work Dynamics Cynthia Kantor said: “Five years following the start of the global pandemic, we continue to see the evolution and growing momentum toward the office sector.”
The JLL analysis further highlighted that multinational corporations must understand regional disparities in office fit-out costs to inform strategic planning.
Regionally, North America commands the highest office fit-out premium, with an average cost of 3,070 per sq. meter, well above the global average of 1,830 per sq. meter.
In Latin America, the average cost is 1,790, while in Europe, the Middle East, and Africa, the average price is 1,970. The Asia Pacific region offers the lowest average fit-out cost at $1,460.
Significant variations in office fit-out costs also exist between major urban areas. US cities lead the top 20 municipalities with the highest office fit-out costs, alongside prominent locations like Vancouver, Tokyo, London, and Dubai.
Fast-growing cities in India, South Africa, Vietnam, and China offer some of the lowest fit-out costs despite the fact they are seeing rapid construction growth and an evolving cost landscape.
Macro-economic impacts
The JLL report further sheds light on how, in the markets evaluated, increases in fit-out costs over the past 12 months were primarily driven by inflation, rising material costs, and currency fluctuations.
Additionally, 75 percent of the markets saw a rise in raw material prices, while 50 percent experienced labor shortages that contributed to higher construction costs.
“Organizations need to factor in these potential cost factors throughout global construction when developing their fit-out budgets,” the JLL statement said.
It added that builder works or construction account for the largest component of fit-out costs — 37 percent — in all regions except Latin America.
These costs can be most susceptible to raw material prices and supply chain risks. Mechanical and electrical expenses account for the second-largest cost, varying from 20 percent to 45 percent.
Sustainability continues to fuel growing demand
The study by JLL explains that as interest in healthier, energy-efficient workspaces surges and supply struggles to meet demand, the need for sustainable fit-outs is growing.
According to the survey, 60 percent of markets have seen a rise in client inquiries for more sustainable fit-outs over the past year.
This aligns with recent JLL Future of Work research, which revealed that 66.66 percent of organizations worldwide plan to increase their investment in sustainability over the next five years.
“A large part of sustainable fit-out costs are dedicated to mechanical and electrical services, which, across all countries, were found to account for an average of 29 percent of total fit-out expenses, with some regions reporting 40-50 percent of costs,” the JLL report said.
“However, these upfront costs are often where the greatest long-term cost efficiencies can be found, as research has also shown that investing in upgrades to M&E services can save between 10 percent - 40 percent on operational energy costs, depending on the level of investment and upgrade,” it added.
Investing in energy-efficient components during fit-outs and consulting with sustainability experts early in the planning phase can help incorporate sustainability requirements and costs into decision-making, thereby minimizing the risk of late adjustments, the JLL statement justified.
Optimism for offices amid caution over potential challenges
Despite a positive outlook, office fit-out development faces several challenges.
That said, the report underlines a need for global firms to address local and regional issues such as labor shortages, talent acquisition, and material availability, as well as liquidity to ensure project success.
The report also suggests that economic and political uncertainty, particularly trade and tariff implications, continue to create instability.
Consequently, early planning for lease expirations and strategic investment in existing buildings is set to benefit both landlords and occupiers, helping to manage costs and navigate the tighter timeframes caused by hesitancy around investment.
“The global office sector faces a complex landscape of challenges and opportunities in 2025,” the Director of Research and Strategy at Work Dynamics Europe, the Middle East, and Africa, Ruth Hynes, said.
“As corporate clients grow and expand their footprints, we anticipate the office construction will remain active even amid market uncertainty, and encourage early, strategic planning to ensure the success of fit-out initiatives,” Hynes added.
Oil Updates — crude tumbles 8% as China retaliates with tariffs on US
- Brent and WTI set for lowest close since April 2021
- China to impose retaliatory tariffs on US
LONDON: Oil prices plunged by 8 percent on Friday, heading for their lowest close since the midst of the coronavirus pandemic in 2021, as China hit back in an escalating global trade war with the US after President Donald Trump’s barrage of levies this week.
China announced it will impose additional tariffs of 34 percent on all US goods from April 10. Nations around the world have readied retaliation after Trump raised tariff barriers to their highest in more than a century, leading to a plunge in world financial markets.
Brent futures dived by $5.30, or 7.6 percent, to $64.84 a barrel by 3:54 p.m. Saudi time. US West Texas Intermediate crude futures lost $5.47, or 8.2 percent, to $61.48.
Both benchmarks were on course for their biggest weekly losses in percentage terms in more than two years.
“China’s aggressive countermove to US tariffs all but confirms we are heading toward a global trade war; a war that has no winners and which will hurt economic growth and demand for key commodities such as crude oil and refined products,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Fuelling the oil sell-off was a decision by the Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, to advance plans for output increases, with the group now aiming to return 411,000 barrels per day to the market in May, up from the previously planned 135,000 bpd.
Imports of oil, gas and refined products were given exemptions from Trump’s sweeping new tariffs, but the policies could stoke inflation, slow economic growth and intensify trade disputes, weighing on oil prices.
Goldman Sachs analysts responded with sharp cuts to their December 2025 targets for Brent and WTI by $5 each to $66 and $62 respectively.
“The risks to our reduced oil price forecast are to the downside, especially for 2026, given growing risks of recession and to a lesser extent of higher OPEC+ supply,” the bank’s head of oil research, Daan Struyven, said in a note.
