In North Syria, Business Hub Hopes to Drive Recovery from War

 Workers labor at a metal factory in the industrial zone of Syria's rebel-held city of Al-Bab, Syria March 10, 2022. Picture taken March 10, 2022. (Reuters)
Workers labor at a metal factory in the industrial zone of Syria's rebel-held city of Al-Bab, Syria March 10, 2022. Picture taken March 10, 2022. (Reuters)
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In North Syria, Business Hub Hopes to Drive Recovery from War

 Workers labor at a metal factory in the industrial zone of Syria's rebel-held city of Al-Bab, Syria March 10, 2022. Picture taken March 10, 2022. (Reuters)
Workers labor at a metal factory in the industrial zone of Syria's rebel-held city of Al-Bab, Syria March 10, 2022. Picture taken March 10, 2022. (Reuters)

In an industrial zone in northern Syria's opposition-held city of Al-Bab, Abu Omar al-Shihabi's smelter churns out iron bars he says can compete with any produced in Syria and beyond.

The industrial zone is an unlikely business hub. It is located on the edge of a city which was once occupied by ISIS and now sits between a Turkish border wall to the north and a frontline with Syrian government forces to the south.

But the zone, one of five in the region which is controlled by Turkey-backed opposition factions, is key to efforts to develop an economy hit by hardship and destruction during Syria's 11-year conflict.

Success could bring sorely needed jobs and opportunities, six years after Turkish troops and Syrian fighters drove ISIS from the region and prevented a Kurdish force from filling the void.

Turkey hopes that stability can encourage some of the 3.6 million Syrian refugees it currently hosts to head back across the border into Syria.

Shihabi said the low wages in northern Syria and abundance of scrap metal after years of war offer big advantages to his iron smelter.

"In Syria, I can compete with the Turks with my own products," said Shihabi, who mainly sells into opposition-held territories and also into Turkey.

The industrial zone, home to about 30 factories and workshops, was established four years ago on the road north from Al-Bab, with support from Turkey.

A sign across the road which bisects the zone is written in both Arabic and Turkish, highlighting Ankara's lasting influence since its 2016 military incursion. The Turkish lira is widely used in the region and Turkish administrators help run schools and hospitals.

BUILDING SELF-RELIANCE
At the industrial zone, factories produce a range of goods including iron bars used in construction, shoes, clothes, mats, mineral water, and tehina, said businessman Omar Waki who set up the project.

"The biggest inducement (to set up operations)... is the low cost. Labor for us is cheap compared to other areas," he said.

"The average worker's wage in Turkey is $400 (a month). Here it's a quarter of that."

Northern Syria, particularly the city of Aleppo just 30 km (18 miles) to the southwest of Al-Bab, was Syria's commercial hub before 2011, when protests against President Bashar al-Assad spiraled into a war, driving many businesses across into Turkey.

Most products in the Al-Bab zone are sold within the northern opposition-held territories, although some do reach more distant markets across frontlines or borders.

Despite cheap labor costs, businesses in the industrial zone face steep challenges. The region is still vulnerable to a possible offensive by Syrian government forces, while poor transport links and rising electricity costs hamper expansion.

Shihabi's smelter is just a fraction of the size of his pre-war operation, which employed 150 people before it was hit in a 2012 air raid. Now it has just 25 workers, and production is down nearly 90%, producing just .

Abdel Khaleq Tahbash set up a factory producing floormats after fleeing bombardment in Idlib. Despite complaints about electricity costs and obstacles to selling abroad, he said he was happy to be in Al-Bab.

"I prefer to work in Syria," he said. "Without capital you can't work in Turkey, and this is my country."

Waki said security in the northwest was improving, drawing more people to invest including three Turkish companies. While the Al-Bab zone remains modest, it shows Syrian businesses are resilient, he said.

"Instead of importing from China or Turkey, we can make it ourselves. We are self-reliant."



Trump's Week of Tariff Turmoil Rings Recession Alarm

An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura  REFILE - QUALITY REPEAT
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura REFILE - QUALITY REPEAT
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Trump's Week of Tariff Turmoil Rings Recession Alarm

An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura  REFILE - QUALITY REPEAT
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura REFILE - QUALITY REPEAT

A week of turbulence unleashed by US President Donald Trump's tariffs showed little sign of easing on Friday, with financial markets again whipsawing and foreign leaders grappling with how to respond to a dismantling of the world trade order.

A brief reprieve for battered stocks seen after Trump decided to pause duties for dozens of countries for 90 days quickly dissipated, as attention returned to his escalating trade war with China that has fueled global recession fears.

US Treasury Secretary Scott Bessent tried to assuage sceptics by telling a cabinet meeting on Thursday that more than 75 countries wanted to start trade negotiations. Trump himself expressed hope of a deal with China, the world's No.2 economy.

But the uncertainty in the meantime extended some of the most volatile trading since the early days of the COVID-19 pandemic.

The S&P 500 index ended 3.5% lower on Thursday and is now down about 15% from its all-time peak in February.

Asian indices mostly followed Wall Street lower on Friday with Japan's Nikkei down 4%, though markets in Taiwan and Hong Kong turned positive and European stocks were set to open slightly firmer.

A sell-off in government bonds - which caught Trump's attention before Wednesday's pause - picked up pace on Friday with US long-term borrowing costs set for their biggest weekly increase since 1982. Gold, a safe haven for investors in times of crisis, scaled a record high.

"Recession risk is much, much higher now than it was a couple weeks ago," said Adam Hetts, global head of multi-asset at investment fund Janus Henderson.

Bessent on Thursday shrugged off the renewed market turmoil and said striking deals with other countries would bring certainty.

The US and Vietnam have agreed to begin formal trade talks, the White House said. The Southeast Asian manufacturing hub is prepared to crack down on Chinese goods being shipped to the United States via its territory in the hope of avoiding tariffs, Reuters exclusively reported on Friday.

Japanese Prime Minister Shigeru Ishiba, meanwhile, has set up a trade task force that hopes to visit Washington next week. Taiwan said it also expects to be included in the first batch of trading partners to hold talks with Washington.

CHINA DEAL?

As Trump suddenly paused his 'reciprocal' tariffs on other countries hours after they came into effect earlier this week, he ratcheted up duties on Chinese imports as punishment for Beijing's initial move to retaliate.

Trump has now imposed new tariffs on Chinese goods of 145% since taking office, a White House official said.

Chinese officials have been canvassing other trading partners about how to deal with the US tariffs, most recently talking to counterparts in Spain, Saudi Arabia and South Africa.

Trump told reporters at the White House he thought the United States could make a deal with China, but he reiterated his argument that Beijing had "really taken advantage" of the US for a long time.

"I'm sure that we'll be able to get along very well," Trump said, adding that he respected Chinese President Xi Jinping. "In a true sense he's been a friend of mine for a long period of time, and I think that we'll end up working out something that's very good for both countries."

China, which has rejected what it called threats and blackmail from Washington, restricted imports of Hollywood films, targeting one of the most high-profile American exports.

The US tariff pause also does not apply to duties paid by Canada and Mexico, whose goods are still subject to 25% fentanyl-related tariffs unless they comply with the US-Mexico-Canada trade agreement's rules of origin.

With trade hostilities persisting among the top three US trade partners, Goldman Sachs estimates the probability of a recession at 45%.

Even with the rollback, the overall average import duty rate imposed by the US is the highest in more than a century, according to Yale University researchers.

The pause also did little to soothe business leaders' worries about the fallout from Trump's trade war and its chaotic implementation: soaring costs, falling orders and snarled supply chains.

One reprieve came, however, when the European Union said on Thursday it would pause its first counter-tariffs.

The EU had been due to launch counter-tariffs on about 21 billion euros ($23 billion) of US imports next Tuesday in response to Trump's 25% tariffs on steel and aluminium. It is still assessing how to respond to US car tariffs and the broader 10% levies that remain in place.

Finance ministers from the 27-country bloc will brainstorm on Friday how to use the pause to get a trade deal with Washington and how to coordinate their efforts to handle tariffs if they do not.

European authorities estimate the impact of the US tariffs its economy would total 0.5% to 1.0% of GDP. Given the EU economy as a whole is forecast to grow 0.9% this year, according to the European Central Bank, the US tariffs could tip the EU into recession.