Economy

EU companies brace for potential US trade war impacts

Questions arise about whether US President Donald Trump will retract his higher import tariffs on steel and aluminum from the European Union or intensify a trade war by imposing tariffs on European cars, chips, and medical equipment. These concerns occupy the boardrooms of major Dutch companies, particularly those active in both Europe and the United States.

Source: NOS

Amsterdam Retains Ownership of Waste Company AEB

The Waste-to-Energy Company (AEB) will remain under the ownership of the Amsterdam municipality. The city decided against selling the company due to the lack of an “acceptable offer” for the waste processor.

The company was put up for sale in the spring of 2024 following several previous attempts to sell. AEB processes waste from residents and businesses, providing energy and heat mainly to homes in Amsterdam-Noord and Nieuw-West.

Approximately twenty percent of the waste processed by AEB originates from Amsterdam, with the remainder coming from other Dutch municipalities and abroad. AEB handles about 16 percent of all waste in the Netherlands.

The company has been a longstanding issue for the municipality. In 2019, four of its six incinerators were shut down for safety reasons due to maintenance backlog and internal conflicts.

Since then, the city has invested tens of millions of euros to keep the company afloat. A previous sale attempt in 2021 to a Rotterdam company was blocked by the Netherlands Authority for Consumers and Markets, citing concerns over the creation of a dominant company that could raise waste processing costs for residents.

The city initially aimed to offload AEB in 2024, citing financial risks and non-essential ownership. Both … Read more

Netherlands assesses reliance on foreign raw materials

The Dutch Ministry of Economic Affairs is examining whether the Netherlands is overly dependent on foreign sources for critical raw materials like lithium, cobalt, copper, nickel, and magnesium, which are vital for the economy.

The Netherlands Materials Observatory (NMO), established at the ministry’s request, will begin evaluating the country’s reliance on foreign suppliers for these resources. Minister Beljaarts emphasizes the need for insight into the supply chain, as these materials are crucial for producing defense, healthcare, and renewable energy technologies.

He notes current dependency on non-European countries such as Congo for cobalt, Australia and Chile for lithium, and notably China for magnesium. Disruptions in supply from these nations could pose significant challenges for the Netherlands.

Beljaarts suggests reducing dependency by stockpiling raw materials or recycling products and engaging in the European initiative to lessen reliance on countries outside the EU. Despite lacking domestic raw materials, the Netherlands could play a role in refining and processing due to its strategic position as a major transit hub.

Source: NOS

EU Criticizes US Tariffs on Steel and Aluminum

The President of the European Commission, Ursula von der Leyen, has expressed regret over the US tariffs on steel and aluminum, describing them as “unjustified tariffs on the EU” that will not go unanswered. She announced “firm and proportionate countermeasures.” US President Donald Trump announced yesterday an increase in tariffs to 25 percent and the removal of “all exceptions and exemptions” for steel tariffs.

Previously, trade partners like Canada, Mexico, the EU, and the UK received duty-free quotas. The new tariffs will take effect on March 4.

Von der Leyen stated that the increased tariffs are “bad for business, and even worse for consumers.” The EU plans to protect its economic interests. Dutch steel manufacturer Tata Steel has expressed concerns over the American measures, as the US is a significant market for Tata, accounting for 12 percent of its steel sales.

The US imports more steel from Canada, China, and the United Arab Emirates. Trump is considering an exception for Australia, citing a trade surplus with the country.

“It is one of the few countries with which we have that,” said Trump. Source: NOS

US Imposes 25% Tariffs on Steel and Aluminum

The United States will impose 25 percent tariffs on steel and aluminum imports.

President Trump signed an executive order authorizing these tariffs and mentioned the possibility of additional tariffs on products such as cars and chips. Trump had announced the tariffs yesterday, but the implementation date remains unclear.

He stated, “It’s time for our great industries to return to America,” during the signing. Tata Steel in Velsen expressed concerns about the anticipated tariffs and is preparing for “all possible scenarios.” The United States is a significant market for Tata, with 12 percent of its Dutch steel production exported there.

According to customs expert Martijn Schippers, the US primarily imports steel from Canada, China, and the United Arab Emirates, but Tata will also be affected. Source: NOS

Man plans to buy landfill to retrieve lost bitcoin fortune

A man from Wales, James Howells, lost a hard drive containing his bitcoin wallet valued at over 720,000 euros in 2013.

He is now considering purchasing the landfill in his municipality to search for the drive, believing it is buried there. The 39-year-old from Newport previously sued the city to allow him to search the landfill but recently lost the case.

As the municipality plans to close the site soon, Howells is exploring the option of purchasing it. “I’ve discussed the option with investment partners, and it’s certainly on the table,” he told The Guardian.

The IT specialist’s former partner mistakenly discarded the wrong hard drive during a house cleanup. Despite multiple requests over the years to search the landfill and an offer to donate a quarter of his bitcoin wallet to the municipality for assistance, Howells has been denied access.

He intends to take the case to the high court. Source: NOS

Trump’s Tariff Plan Could Impact Tata Steel’s US Exports

Tata Steel has expressed concern over the potential impact of President Trump’s proposed tariffs on steel and aluminum imports.

The company is preparing for “all possible scenarios.” Trump threatens to impose a 25 percent tariff on all steel and aluminum entering the United States. Tata Steel, which exports 12 percent of its Dutch-made steel to the US, is in close contact with the US Chamber of Commerce, the Dutch embassy, and EU representatives in the US.

Customs expert Martijn Schippers suggests that if implemented, the cost of imported steel in the US will rise, affecting industries like automotive production. Schippers also notes that Trump’s tariff threats might serve as leverage for other concessions.

Previously, exceptions were made for specialized steel products during Trump’s first term. Tata provides steel for electric vehicle batteries and high-quality packaging in the US.

Former Tata Steel Nederland director Theo Henrar recalls the previous tariff situation, noting that exceptions were eventually made. Henrar believes it might end similarly this time, with a focus on maintaining dialogue while investing in technology at a European level.

Source: NOS

Queen Máxima voices concern over buy now, pay later services

Queen Máxima has once again expressed serious concerns about buy now, pay later services, calling them “a ticking time bomb for society, particularly for young people,” as reported by FD. She fears that these services may lead to debt accumulation among youths.

Debt assistance organizations have described a “debt explosion,” and bailiffs are witnessing more young people with debts. The Dutch Authority for the Financial Markets (AFM) is advocating for stricter regulations.

Payment services like Klarna, Riverty, and Billink are not subject to the stringent requirements that apply to credit providers, such as verifying income. Despite concerns from the Dutch Parliament and Cabinet, Klarna announced plans this week to expand buy now, pay later options to physical stores, claiming it’s a better alternative to overdraft fees.

The AFM notes that the immediate enjoyment of purchases without payment can alter norms, leading to a habit of making purchases without sufficient funds, which is undesirable. Last year, Máxima expressed worry about the lack of financial oversight leading to overdraft situations.

She advocates for a “save first, pay later” approach. Queen Máxima has been involved in financial matters for over two decades, promoting global financial inclusion and microcredit.

Recently, she has focused on … Read more

Stradivarius Violin Sells for Less Than Expected

A Stradivarius violin from 1714 was auctioned in New York for a disappointing sum. Experts anticipated the instrument might sell for a record $18 million, but bidding ceased at $10 million.

The violin, considered one of the finest works by the renowned Italian maker Antonio Stradivari, was crafted during his “golden period” at the peak of his career, according to Sotheby’s. The German composer Brahms was reportedly inspired by this instrument when composing his Violin Concerto in D major, and it was played at the concerto’s premiere in 1879.

Named the ‘Joachim-Ma Stradivarius,’ the violin honors its former owners, Hungarian violinist Joseph Joachim and Chinese violinist Si-Hon Ma. It was owned by the New England Conservatory of Music in Boston, which plans to use the auction proceeds to fund student scholarships. Bidding started at $8 million but didn’t exceed $10 million, which is relatively low for a Stradivarius.

For comparison, another Stradivari violin sold for $15.3 million in 2022, and the most expensive one fetched $15.9 million in 2011. The buyer of the violin remains undisclosed, and they must pay an additional $1.3 million in auction fees.

Stradivari created about 1,100 instruments during his lifetime, with approximately 600 remaining, mostly … Read more

Institutional Investors Seek €800 Million from Philips

A group of over one hundred institutional investors, including pension funds from the US and Germany, is seeking more than €800 million in damages from Philips. They allege that the company concealed health risks associated with its sleep apnea devices for years.

Investors claim they were unaware of the true value of the shares they purchased, leading to significant losses when the issues were disclosed in 2021, causing a sharp decline in share value. Philips denies liability, asserting it adequately informed investors about the problems at Respironics, the subsidiary responsible for the devices.

A major recall was initiated because the foam in the devices could degrade into potentially carcinogenic particles. Attorney Frank Peters, representing the investors, argues that Philips was aware of the issues since 2015 and continued production, focusing on profit.

The claimed amount is based on economists’ calculations of the share price’s potential value had Philips been transparent. Peters criticizes Philips for its silence, noting that timely disclosure of bad news would prevent such claims.

This action is separate from a 2022 case led by the Dutch Investors Association (VEB) seeking €16 billion for individual shareholders. Peters indicates his clients have their strategy for compensation but doesn’t rule … Read more