12/09/2025

BIZ & FINANCE FRIDAY | SEPT 12, 2025

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Mexico to raise tariffs on cars from China to 50%

Italy to remain top wine producer in world: 2025 estimates MILAN: Italy is expected to enjoy a good 2025 harvest and clinch the world’s leading producer label once again, according to estimates presented on Wednesday by Italy’s Agriculture Ministry and its wine union. Italian winegrowers are expected to produce 47 million hectolitres of wine and grape must, an increase of 8% compared to 2024, and a return to the average of previous years. Italy has been the top producer over the past five years, including last year, except for 2023, when France took its place. 2023 was a difficult year for Italy in which production – the lowest ever since the post-war period – was hit by extreme weather and fungal diseases. Production is expected to be particularly high in southern Italy, up 19%, Sicily and Puglia, where heavy spring rains replenished groundwater reserves and helped crops withstand an early and hot summer. The northeast had a more difficult year with changeable weather and disease, and Veneto, the peninsula’s leading wine-producing region, remains at average production levels. Overall, Italy is regaining a lead over France, the world’s second largest producer, and expected to produce 37.4 million hectolitres. France’s production was particularly affected by the hot weather in August. Spain is expected to be in third place, at 36.8 million hectolitres. “It is a balanced vintage, without any extraordinary peaks in production, but with interesting prospects in terms of quality, ranging almost everywhere from good to excellent,” the Italian Wine Union and the Association of Italian Oenologists said in a report. Export demand slowed by 4% in the first five months of 2025, while demand also slowed in Italy, with the exception of sparkling wines. – AFP German pilots admit to sleeping on the job BERLIN: A German pilots’ union said on Wednesday that napping during flights had become a “worrying reality” for its members as it sounded the alarm over “increasing fatigue” in the sector. The Vereinigung Cockpit union said it had carried out a survey of more than 900 pilots in recent weeks which had found that 93% of them admitted to napping during a flight in the past few months. While cautioning that the survey was “not representative”, the union said 44% of pilots asked had napped “regularly” during flights, 12% on every flight, while 7% could not remember how often it happened. “Napping has long become the norm in German cockpits,” said Katharina Dieseldorff, vice president of Vereinigung Cockpit. “What was originally intended as a short-term recovery measure has turned into a permanent answer to structural pressure. “A short nap is not critical in and of itself. But a permanently exhausted cockpit crew is a significant risk,” added Dieseldorff. She said that staff shortages and “rising operational pressure” had worsened the situation for pilots, particularly during the summer months. The union said it defined napping as “controlled rest phases during the flight phase”. The union says it represents 10,000 pilots and cockpit personnel in Germany, including those still in training. – AFP

Mexico will instead work with it towards global economic recovery and trade development. “We will resolutely safeguard our own rights and interests in accordance with the actual situation,” ministry spokesperson Lin Jian told reporters at a regular news briefing. The plan still needs to be approved by Congress, where the government holds a significant majority. The tariffs will impact countries that do not have trade deals with Mexico, especially China, South Korea, India, Indonesia, Russia, Thailand and Turkiye, the Economy Ministry said in a document. The plan will impact 8.6% of all imports, the document said, and will protect 325,000 industrial and manufacturing jobs that were at risk. The measures also include a 35% tariff on steel, toys and motorcycles. Textiles will see levies between 10% and 50%. The move comes as the United States pushes countries in Latin America to limit their economic ties with China, with which it competes for influence in the region. “The US is not going to allow China to use Mexico as a backdoor,” said Mariana Campero of the CSIS Americas Programme, adding that Mexico has doubled its trade deficit with China in the last decade, hitting U S $ 1 2 0 b i l l i on last year.

Ebrard had earlier this year spoken against tariff measures, saying they were at odds with economic growth and keeping inflation down. Banco BASE analyst Gabriela Siller said the tariffs would likely boost demand for Chinese vehicles in the very short-term. “Tariffs on countries with which Mexico does not have trade agreements have two objectives,” she said on social media. “First, more revenue and second, to look good to Trump.” John Price, managing director at Americas Market Intelligence, said that Mexico, which exports many of its own vehicles to the United States, is responding to US pressure while trying to protect its economy. “The Mexicans are trying to placate the Americans, but protect their industrial policy that’s worked so well for them over the last 30 years,” he said after the government announced it was looking to raise an additional US$3.76 billion in tariff measures next year. The United States and Mexico, which share a free trade agreement along with Canada, are each other’s top trade partners. The agreement, which has spared Mexico the brunt of much of the tariffs from US President Donald Trump’s administration, is set for review next year. – Reuters

o Minister says measure will protect local jobs but analysts see move as response to US pressure MEXICO CITY: Mexico said on Wednesday it will raise tariffs on automobiles from China and other Asian countries to 50%, in a broad overhaul of import levies the government said would protect jobs and analysts said was aimed at placating the United States. The Economy Ministry said the moves, which will increase tariffs to varying degrees on goods across multiple sectors including textiles, steel and automotive, would impact US$52 billion (RM220 billion) of imports. “They already have tariffs,” Economy Minister Marcelo Ebrard told reporters when asked about the import levies on Chinese cars, which are currently 20%. “What we will do is raise them to the maximum level allowed. “Without a certain level of protection, you almost can’t compete.” Ebrard said the measures, which come just within limits imposed by the World Trade Organisation, were intended to protect jobs in Mexico as Chinese cars were entering the local market “below what we call reference prices”. China firmly opposes to being coerced by others, and restrictions imposed under “various pretexts”, its Foreign Ministry said yesterday, adding that the Asian nation hopes that

A woman walking in front of a BYD electric car dealership in Mexico City. – REUTERSPIC

Merck ditches plan for US$1.4b research centre in UK LONDON: Merck, the US pharmaceutical group, said on Wednesday it has dropped plans to build a US$1.4 billion (RM5.9 billion) research centre in Britain, blaming the country’s “lack of investment” in the sector and its drugs prices. The company said in a statement it would not go through with the construction, which had been slated for the King’s Cross district in central north London. It said the decision stemmed from a company evaluation of its research capabilities “and reflects the challenges of the UK not making meaningful progress towards addressing the lack of investment in the life science industry and the overall undervaluation of innovative medicines and vaccines by successive UK governments”. that “the UK has become the most attractive place to invest in the world, but we know there is more work to do”. He said the government recognised that the decision would dismay Merck employees in the country, and it “stands ready to support those affected”.

Merck’s decision follows that of UK sectoral rival AstraZeneca to abandon plans to build a US$540 million vaccine factory in Britain, in the Liverpool region, because of what it said were insufficient state incentives. The world’s biggest pharmaceutical groups have this year come under pressure from US President Donald Trump to invest in America or see their production in other countries be hit with tariffs. – AFP

It said it would also close down its activities in two London labs by the end of the year, leading to 125 job losses. The Merck statement confirmed news first reported by The Financial Times . The daily quoted the company as saying: “Simply put, the UK is not internationally competitive.” The British government spokesman told AFP

The British government acknowledged the “concerning news” and was standing by to help Merck employees in the UK and others affected by the development, a spokesman told AFP. Merck said it would no longer take possession of Belgrove House in King’s Cross, ditching a project that was to have engaged 800 workers over the next two years.