EU May Delay First Counter-tariffs against US to Mid-April

FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium August 21, 2020. REUTERS/Yves Herman/File Photo
FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium August 21, 2020. REUTERS/Yves Herman/File Photo
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EU May Delay First Counter-tariffs against US to Mid-April

FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium August 21, 2020. REUTERS/Yves Herman/File Photo
FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium August 21, 2020. REUTERS/Yves Herman/File Photo

The European Union could delay imposition of a first set of counter-measures against the United States over President Donald Trump's steel and aluminium tariffs until mid-April, European Trade Commissioner Maros Sefcovic said on Thursday.

The European Commission had proposed re-imposing tariffs on 4.5 billion euros ($4.9 billion) of US products on April 1, followed by hitting a further 18 billion euros of US goods on April 13, Reuters said.

"We are now considering to align the timing of the two sets of EU counter-measures so we can consult with member states on both lists simultaneously, and this would also give us extra time for negotiations with our American partners," Sefcovic told a hearing at the European Parliament.

The first set of EU counter-measures includes applying a 50% tariff on US bourbon. Trump threatened to slap a 200% tariff on all wines and other alcoholic products coming from the EU if the bloc went ahead with this.

The Trump administration is also planning further tariffs on April 2.

French Prime Minister Francois Bayrou said on Sunday that the EU was probably mistaken in targeting American whiskey, while Italian Prime Minister Giorgia Meloni cautioned EU partners on Tuesday against escalating the trade dispute with the United States.

"I am not certain that responding to tariffs with more tariffs is necessarily a good deal," Meloni, who is close to Trump, said.



Israeli Assets Slide as Regional Tensions Escalate

New Israeli Shekel banknotes and coins are seen in this picture illustration taken November 9, 2021. REUTERS/Nir Elias/Illustration/File Photo
New Israeli Shekel banknotes and coins are seen in this picture illustration taken November 9, 2021. REUTERS/Nir Elias/Illustration/File Photo
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Israeli Assets Slide as Regional Tensions Escalate

New Israeli Shekel banknotes and coins are seen in this picture illustration taken November 9, 2021. REUTERS/Nir Elias/Illustration/File Photo
New Israeli Shekel banknotes and coins are seen in this picture illustration taken November 9, 2021. REUTERS/Nir Elias/Illustration/File Photo

The cost of insuring Israel's debt against default rose on Thursday, and its bond prices and stock indexes slid, as regional security concerns spiked and the country's own government wobbled.

Israel's five-year credit default swaps rose nine basis points (bps) from Wednesday's close, to reach 107 bps, according to S&P Global Market Intelligence, while its international dollar bonds slid more than 1 cent, Reuters reported.

The 100-year issuance, which matures in 2120, shed more than 1.3 cents before retracing some of the loss to be bid at 67 cents on the dollar, Tradeweb data showed.

"A possibility of a more pronounced geopolitical deterioration may take its toll on the local economy and the fiscal deficit, and also make it more challenging for Bank of Israel to lower its rates later this year," said Ronen Menachem, chief markets economist with Mizrahi Tefahot Bank.

The United States has restricted government employees' travel outside certain Israeli cities, and pulled some personnel out of the Middle East, due to escalating tensions with Iran.

Benjamin Netanyahu more time resolve its worst political crisis yet and avoid a ballot that polls suggest he would lose.Israel's parliament rejected early on Thursday a preliminary vote to dissolve itself, giving the ruling coalition led by Prime Minister

Israel's stocks also slid, with the blue-chip and the broader indexes down roughly 2%. The shekel currency fell just less than 1% versus the US dollar, to 3.56, but remained up 2% year to date.

Still, Menachem noted that local indexes are near all-time highs, and assets have rebounded from other recent security related declines.

Markets broadly moved into risk-off mode, with oil prices spiking and fixed income instruments in other emerging markets coming under downward pressure.