‘stolen’ funds damages
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A BAHAMIAN bank and trust company is demanding “no less than $33m” in damages from a global payments provider after the latter “unlawfully withheld” more than $18m funds belonging to it.
Deltec Bank & Trust, in a statement issued yesterday in response to Tribune Business inquiries, confirmed that on Monday it initiated legal action against Ibanera and its affiliates, plus their principal, Michael Carbonara, in a bid to redress
Uncertainty if GB assets in Hutchison’s global port exit
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
UNCERTAINTY pre-
vailed last night over whether the Freeport Container Port and 50 percent ownership in the Freeport Harbour Company are included in CK Hutchison Holdings’ multi-billion dollar global ports deal. The Hong Kong-based conglomerate, unveiling its net $17.165bn exit from international ports operations via their proposed sale to a consortium featuring its long-time partner, Mediterranean Shipping Company (MSC), and Blackrock, the world’s largest asset manager, said the agreement involves some 43 ports spread across 23 different countries.
With operations in China and Hong Kong not included in the deal, subtracting these from all the ports listed on Hutchison Port Holdings’ website leaves the same number of facilities and countries as detailed in the statement announcing the deal. To reach the 43 ports and 23 countries number, the Freeport Container Port would have to be included in the sale but this could not be confirmed before press time last night.
The Hutchison Port Holdings’ website also denoted Freeport Harbour Company as being part of its Bahamian port operations, implying that this is also included in the sale. Freeport Harbour Company, though, is a 50/50
a “past urgent” situation that had resulted in “overdrawn accounts” due to the loss of these monies.
“The complaint outlines our position regarding Ibanera’s wrongful withholding of Deltec Bank funds. We look forward to resolving this issue through the appropriate legal channels,” a Deltec spokesman wrote in a messaged reply to this newspaper. The battle with Ibanera is Deltec’s latest legal headache, having become embroiled in litigation following FTX’s collapse and a dispute with the US authorities over seized funds.
The Lyford Cay-based institution, though, yesterday received better news over the latter battle. The US Justice Department, in a settlement motion filed with the eastern Virginia federal court, agreed to return to it more than 84 percent - or $37.828m out of $44.828m - that the authorities seized from one of its US accounts on the grounds that it represented the proceeds of a ‘pig butchering’ crypto currency fraud.
With only court approval of that settlement now awaited, Deltec and its US attorneys can now concentrate on their fight to recover the $18m from Ibanera, which was described as a payments or money transmission services provider offering “global connectivity for banking institutions”. The Bahamian bank said it needed Ibanera “to process transactions” on its behalf in “certain jurisdictions” where it needed a payment provider.
“Carbonara promises that Ibanera can be trusted to transmit various currencies and crypto currencies across borders in strict compliance
Super Value chief: ‘$500k gamble paid off’ eggs-actly
By NEIL HARTNELL
SUPER Value’s owner yesterday asserted its “$500,000 gamble paid off” with the restriction on how many low-priced eggs customers can buy now doubled from just two to four cartons.
Rupert Roberts told Tribune Business that the supermarket chain’s investment in its own brand has “taken the public off noodles and sausages and put them on high-protein eggs at almost one-third of the price they used to be” following the in-store arrival of its first imported shipment priced at $3.79 per carton.
The initiative sparked frenzied scenes in many Super Value stores on Monday, which Mr Roberts described as “almost riots”, with Bahamians snatching egg cartons
from each other, dropping them and causing general “chaos”. At the chain’s Nassau Street store, consumers went in the back store room and started distributing the eggs among themselves, while at Prince Charles they were dropped and shattered “all over the floor”.
With just one-and-a-half containers, out of an original six-strong container shipment, yet to be sold as of yesterday morning, the Super Value chief and his executives reassured Bahamians that a further four containers - all containing lower-priced eggs - will arrive in The Bahamas on Tuesday morning with regular weekly deliveries scheduled thereafter.
with payment instructions from banks and their clients. Deltec Bank trusted Ibanera to transmit its funds. Instead, Ibanera has stolen them,” Deltec Bank & Trust alleged in its lawsuit, filed in the south Florida federal court on March 3, 2025.
“Ibanera has taken at least $11.037m, plus at least $7m worth of other fiat that indisputably belong to Deltec. Deltec instructed Ibanera to transmit those funds to Deltec on January 6, 2025, and Ibanera was obligated to send Deltec its funds within three days.
“However, three days passed, then a week, then a month, as Deltec made continuing requests of escalating urgency, culminating in a demand from counsel. All the while, Ibanera’s intermediary promised that Ibanera was working on the payment request.”
Deltec is alleging that, more than a month after it issued its instructions, Ibanera replied that “it was somehow
And, disclosing that Super Value may have to drop self-service and distribute eggs to consumers via its diary department workers to prevent a repeat of Monday’s over-enthusiasm, Mr Roberts said the 13-store chain had “sacrificed” its profit margin to boost Bahamians’ welfare. Instead of a 10 percent government price-controlled mark-up on a dozen eggs priced at between $9-$10, it is now earning the same margin on just $3.79.
And Clifton Fernander, Super Value’s perishables buyer, yesterday reiterated that the lower-priced eggs - sourced from outside the traditional US supply chain - had met all the Government’s health and safety regulatory requirements
URCA urged: ‘Cure abuse’ to stop political interference
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
CABLE Bahamas is urging regulators to “cure this abuse” and “unnecessary financial burden” caused by governments dismissing its directors before they have completed their full term in office. The BISX-listed communications provider renewed its call for legislative reforms to prevent the Utilities Regulation and Competition Authority (URCA) from being “compromised by political transitions” when the
administration changes following a general election. It argued that the regulator’s contention that the issue is above its pay grade
is little mote than “a flimsy excuse”.
Hitting out in its response to URCA’s draft 2025 annual plan, Cable
Bahamas said: “Yet again the Cable Bahamas group calls for an amendment to the URCA Act - Sections 18 and 20 in Part IV on the appointment of Board members - which results in significant financial payments to dismissed Commissioners who have not been allowed to serve out their complete term of appointment due to a change in administration.
“The URCA Board is every five years being treated as any other government Board rather than observing the requirements of the URCA Act
No blanket approach for moving roadside garages
By FAY SIMMONS Tribune Business Reporter
jsimmons@tribunemedia.net
A SCRAP metal yard proprietor, who says his business has operated without incident for 40 years, yesterday argued the Government should not adopt a blanket, onesize-fits-all approach to relocating such operations.
Gevon Fisher, owner of G & G Scrap Metal, said a relocation plan for roadside garages and businesses such as his should consider the safety risk each one poses to the communities in which they are based. He added that his garage poses a low risk to surrounding residents and businesses as he only stores metals and car parts, which are less combustible than garages that house derelict vehicles. “I don’t classify scrap garages and roadside garages as the same thing. I deal with stuff that is not as hazardous or flammable. Stuff that people take from cars, like the harness wires, the batteries, starters, motors, alternators, transmission, engines, aluminum, brass, that sort of stuff,” said Mr Fisher.
“I inherited this business, from my father. He was doing it over 40 years and it’s been five years since I took over. We never had that sort of problems.” Mr Fisher said his garage has adequate safety measures in place in case of an accident, as do other scrap metal businesses and roadside garages, so an
EGG cartons line the shelves at a Super Value grocery store.
Photo: Dante Carrer/Tribune Staff
BAKERIES STILL CAUTIOUS ON LOWER-PRICED EGGS
By ANNELIA NIXON
BAHAMIAN bakeries yesterday remained cautious over purchasing Super Value’s new low-priced eggs due to uncertainty over their origin.
Rahnique Williams, manager of Twisted Delights, noting that her business purchases three to four cases of eggs per week, said that having used Super Value as a supplier in the past she has already used the cheaper eggs in her products.
“So far so good. I’m happy that the price is down,” Ms Williams said. “But like I said, we just started using the eggs so we don’t know how it really affects the products. Baking stuff is very fragile, and if the eggs aren’t good we are going to know.
“We really just started using them today because we were trying to use up the first set [of eggs] that we got previously. But so far so good. The yolk looks a little too yellow so I don’t know. So that’s my concern.”
Gia Williams, owner of OMG Bakery, who shops for eggs at the retail price of $12, added that the quality of egg matters when baking.
Bahamas
She said she does not have enough information on the new eggs and where they come from to consider purchasing them for her pastries.
“We get them from Super Value,” Ms Williams said. “The ones that are sold wholesale are more expensive, actually. And they’re different. Different people need a different quality type of eggs. You find that some eggs have more fat in them than others. So, it all depends on what it is you’re making.
“So if you try to go with organic eggs, they won’t be as fatty as, I guess I would say, the processed eggs. Organic eggs aren’t really to bake with. If I’m selling omelets I could say we only use organic eggs for that. The set that just came out yesterday, we can’t give a ‘yay’ or ‘nay’ as yet but usually the Hillandale eggs that they bring in is what we would use.
“So now the set here that they just brought in that are $3.79 or so before VAT, we haven’t compared them to state how they work against the Hillandale. We got them yesterday. I just never made anything with them,” she added.
“I think it’s just because we’re already accustomed to certain things, people don’t like change. So even
if you promise to bring it to them for ‘x’ dollars, people will still flare their nose up like ‘A dollar? Something isn’t right with that.’ So that’s human nature. I really don’t think anything is wrong with them but, again, only time will tell.”
Shawnette Williams, owner of Something Sweet Bakery, said: “As a baker using eggs, we have to be very careful. We have to do our research on those eggs first, because these are eggs that our customers are consuming, and we definitely don’t want any problems with using these eggs to affect our customers.
“Right now we have to do our research first before we consider even purchasing those eggs. We saw the news yesterday about the eggs, and then we continued watching the Facebook messages and stuff with customers that purchased the eggs… especially how, at the moment, we’re not even sure where these eggs come from.
“We know the eggs that we use, they came from the US. These ones, I’m not sure where they come from, so I have to be very careful of which eggs we purchase to put in our cake for our customers,” she added.
“It’s good that they’re able to find eggs that are cheaper but, at the same
First underwriter joins global elite’s top 4%
BAHAMAS First has announced that Carla Rolle-Stubbs, its senior underwriter, has been named as a Fellow of the Chartered Insurance Institute (FCII) in the UK.
The property and casualty insurer, in a statement, said this designation places Ms Rolle-Stubbs among the elite 4 percent of CII Members worldwide, thus marking a significant milestone in her career.
After entering the general insurance industry in 2005, Bahamas First said that - over the past two decades - Ms RolleStubbs has developed her expertise in underwriting and risk management, filling roles such as account executive, underwriter and commercial manager at leading insurance agencies.
In 2022, Ms RolleStubbs was honoured as a CII goodwill ambassador, becoming the first in The
Bahamas and the Caribbean region to attain that recognition. In this role, she is charged with promoting professional development and elevating recognition of the insurance sector in the Caribbean.
Ms Rolle-Stubbs also holds a master of business administration (MBA) from Coventry University in England, and an advanced diploma in insurance (ACII). She is a member of the CII’s Society of Underwriting Professionals.
“I am truly honoured to receive the FCII designation. It is a satisfying reward for the hard work and dedication I have put into my career this far. I am grateful for the support of my team at Bahamas First, who continuously inspire me to strive for excellence,” Ms Rolle-Stubbs said.
“This designation is not just a personal milestone
but a stepping stone to further impact the insurance industry in The Bahamas. I hope to inspire others in the field to pursue their professional goals with unwavering determination.”
Richard Darville, Bahamas First General Insurance Company’s chief executive, added: “Carla’s designation as FCII is a reflection of her dedication and expertise. At Bahamas First, we are committed to fostering professional growth and development among our team members. Carla’s success highlights the importance of continuous learning and excellence in our industry.”
Kevin O. Hudson, Bahamas First’s vice-president of underwriting at Bahamas First, said: “Carla’s achievement is a source of immense pride for all of us. Her commitment to professional
note, we need to know where the eggs come from so that we can know that, okay, these eggs are safe for our customers, for anybody in particular. It’s like buying eggs for home. I’m not even sure if I want to try them yet.”
Both Gia Williams and Shawnette Williams said their prices have remained the same. However, Shawnette Williams said if egg prices continue to go up she will have to increase hers as well. She added that she has tried sourcing locally but to no avail.
“We haven’t adjusted our prices as yet, but if it continues, we definitely will have to try and adjust the prices because right now, egg is about almost $300 a case,” Shawnette Williams said. “Then it used to be about $120 to $150 a case. And we are trying our best right now to see if we could source eggs locally.
“But that is very hard for us. Every time we try to source them, everybody is out of it. That’s our issue right now. We’ve called everywhere that we can that has eggs locally and, because of the amount of eggs that we use on a monthly basis, they’re not able to assist.
“Instead of buying it by the case, because it’s basically the same thing in
wholesale, right now we just try to see what we can get from the food store. And the last time I went to the food store, eggs was about $12 for a tray of 12. So that’s our issue there. So we, at the moment, we’re trying to buy eggs piece by piece,” Shawnette Williams added.
“If the eggs continue to increase, our prices may have to increase because we’re losing a lot of profit. Right now, most of our profit is going into buying eggs and other products, because it’s not just the eggs going up but other products that we use try to go up as well.
“To me, I don’t think there’s anything that the Government can do because these egg prices are based on the bird flu.
Pricing wise, it’s still a bit too high for consumers to be purchasing - especially paying $1 an egg.
“Like I said, we are doing our research to try and find ways that we can source the eggs longer-term. So if something like this happens again, we’re back to square one. Right now, we’re just trying to find the best solution for the longer term.”
Gia Williams, however, said she is trying to maintain her prices and allow her business to “absorb” the costs. “Of course it’s
going to cause the cost of the items to be more but you can’t change the price because the price of one ingredient changes,” she said.”If that’s the case then your prices will always have to fluctuate. So the business has to absorb the cost of it.
“We can’t say the cakes are going to be $200 this week because the eggs cost $1 each. So your prices have to remain the same. That would be the proper business etiquette, because now that eggs have gone back down to $4 you should go and change the price of the cakes again. We have to absorb whatever the price increase is.
“It would affect your bottom line, of course, but the thing about it is, it’s temporary. Like you just came off of Christmas. It’s a good thing during Christmas, it was still high but it wasn’t $12. You have to adjust. It’s just one of those things that comes with business. You can’t fire the staff because eggs are $12. You still have to make it work. So you have to increase your productivity on how many things you’re going to sell. You have to offset it.”
development and her leadership within the team are truly inspiring. We are fortunate to have her expertise and passion driving our underwriting success.”
KEVIN O. HUDSON, VP of Underwriting at Bahamas First General Insurance Company (left), and Richard A. Darville, CEO (right), present Senior Underwriter Carla Rolle-Stubbs with a gift from the company acknowledging her new status as a Fellow of the Chartered Insurance Institute (FCII), UK.
SENIOR Underwriter at Bahamas First General Insurance Company, Carla Rolle-Stubbs, has been named a Fellow of the Chartered
UK.
Sebas launches commerce park already 55% reserved
SEBAS Bastian’s Brickell Management Group (BMG) yesterday unveiled its western New Providence commerce park project where 55 percent of the available 90 lots have already been reserved.
The developer, in a statement, said it has teamed with New Providence Development Company to develop the 76-acre Westfield Commerce Park on Windsor Field Road
directly across from the Airport Industrial Park. Asserting that the project is generating impressive demand from the private sector, given that 55 percent of lots have been reserved, Brickell Management Group added that the project has just received subdivision approval and will now begin the sales process to finalise reservations.
“Westfield Commerce Park is a significant step
forward in meeting the growing demand for businesses seeking commercial property in western New Providence, while fostering economic development across the country,” said Sebastian Bastian, Brickell Management Group’s chairman. “The work onsite begins this month and we are looking to complete it within the next nine to 12 months.”
Westfield Commerce Park marks the eighth active project out of 14, totalling almost a combined $510m investment, that was announced when Prime Minister Philip Davis KC toured Brickell Management Group’s developments in February 2024.
With 90 subdivided lots, ranging in size from 18,000 square feet to two acres, Westfield Commerce Park was said to be capable of accommodating business ventures ranging from office spaces and retail storefronts to warehouses and manufacturing facilities. It is targeted at a mix of commercial, light industrial or mixed-use purposes, and is located close to Sir Lynden Pindling International Airport (LPIA).
URCA URGED: ‘CURE ABUSE’ TO STOP POLITICAL INTERFERENCE
for staggered appointments, which cross over into administration changes to ensure continuity. The result is an additional and unnecessary financial burden on licensees every five years, which is unconscionable and requires salary payments for working and non-working commissioners.
“URCA’s response in its statement of results and final determination in the 2024 draft annual planthat the matter is out of URCA’s hands and is a government responsibility - is a flimsy excuse which allows the ongoing abuse to persist. The group is satisfied that as it has done with past amendments, URCA does have sufficient influence with the administration to cure this abuse and it must do so forthwith.”
Ramming the point home later in its response, Cable Bahamas added: “The group respectfully urges the administration to honour
the statutory tenure of commissioners and refrain from prematurely terminating their appointments due to changes in government. “URCA was established as an independent and autonomous regulator, intended to function without political interference. It is imperative that URCA itself upholds and safeguards this statutory measure, ensuring its role is not compromised by political transitions.” URCA did not specifically address these concerns in its response to the feedback. However, Cable Bahamas in calling for “a balanced approach” to URCA’s consumer protection drive hinted that it feels the regulator sometimes moves to fair against its communications licensees. And it also urged URCA to tackle the impact unreliable electricity supply has on its and other operators’ performances given that it also has regulatory authority over Bahamas Power & Light (BPL).
NO BLANKET APPROACH FOR MOVING ROADSIDE GARAGES
assessment should be done to determine which need to be relocated to ensure the safety of the community and those that can continue in their current location.
“You never know what could happen, but we have our safety measures in place and we’ve never had an incident. We have fire extinguishers; we have water hoses and we make sure there’s enough safety in place for the work that we do,” said Mr Fisher.
“I know of a couple companies that deal with scrapped cars daily, but I feel like they have it under control because of the area they are in and what they have in place. There are also some places that are a risk to neighbours because of the location and the flammable items they are working with. So there has to be a risk assessment of each business to see how they are impacting the community and if they should relocate.”
Mr Fisher explained that scrap metal businesses also provide a public service by recycling items that would otherwise have been discarded at the landfill. Their relocation could deter residents from recycling unwanted items and isolate garage operators from their client base.
“This field of business, we call it scrap metal, but it’s more like recycling. People bring us stuff from their homes or vehicles that they don’t need and I get those things to people who can use them. We serve the people in our community and not all of them are willing to drive out to a designated area,” said Mr Fisher.
“We deal with businesses, too, when they want to change windows or get rid of stuff. Even the hotels, when they are demolishing or renovating and they come to us, all these things don’t end up in a landfill.”
Clay Sweeting, minister of works and Family Island affairs, said the Government has identified Crown land to relocate roadside garages around New Providence.
He said an inter-ministerial committee, formed by the Prime Minister, is in talks with businesses to develop a relocation plan that works for all parties and officials will prioritise discussions with the largest operations first, acknowledging that the issue involves “a lot of moving parts”.
Mr Sweeting said the Department of Environmental Planning and Protection (DEPP) is assessing the feasibility of the proposed site,
“While URCA’s emphasis on consumer protection as a major objective is acknowledged, there is a concern that this focus may sometimes overshadow the need for a balanced approach that also considers the interests of licensees,” the BISX-listed communications provider argued.
“Similarly, with the Quality of Service standards, it appears that URCA may not fully appreciate the critical inter-dependencies between telecoms licensees and the electricity supply, as well as other telecoms licensees with which the group interconnects.
“URCA’s apparent reluctance to intervene in these areas, which can significantly impact both licensees and customers, is concerning. Additionally, it is disappointing to note the absence of references to the reliability and resiliency of the electricity supply or the imposition of fines or penalties on electricity providers for their poor quality of service, which directly
emphasising that the Government must ensure the move does not create new problems down the line.
He said the Ministry of the Environment, the Ministry of Housing, the Ministry of Works and Family Island Affairs, and the Prime Minister’s Office are all involved in the relocation effort.
For years, residents have complained about the unchecked spread of roadside garages, citing environmental hazards, derelict vehicles and fumes affecting nearby homes. However, despite their frustration, enforcement has been absent, and the problem has only worsened.
The issue came to the forefront again this month when a fire destroyed Honda Plus, a vehicle storage and car parts business located along the main road in the Victoria Gardens subdivision, next door to Mr Fisher’s business.
Last year, a fire erupted at CRT Enterprises, a scrap metal yard on Joe Farrington Road, setting derelict vehicles ablaze and damaging a nearby crane rental company and the roof of Rubis gas station. The fire continued smouldering for days after it was contained.
affects the quality of service provided by the group.”
The Bahamas Telecommunications Company (BTC), meanwhile, argued that some of the universal service obligations (USO) imposed on it are now irrelevant given the advance of mobile technology and over-the-top (OTT) applications.
“BTC acknowledges the foregoing universal service obligations are no longer applicable in this rapidly evolving electronic communications sector,” it argued.
“BTC reiterates its 2023 response to this project which states BTC’s appreciation for necessity for basic access to electronic communication services for all.
“BTC is of the view that the selection of a universal service should be a relevant and useful service for the consumer and cost effective for the service provider.
The Communications Act list services for which BTC is the designated universal service provider, namely basic dial-up Internet services to populated areas, basic dial-up Internet services free of charge to specified institutions, basic telephony services to all populated areas and public access to pay apparatus.
“As it stands, services such as dial-up Internet and pay phones are non-existent
with the ubiquity of mobile phones and OTT services. Furthermore, BTC is of the view that a gap analysis of the USO should be done in concert with the results of the 2022 mobile market review, the 2024 fixed service review and the review of satellite operators to make a conclusive decision.
“BTC looks forward to fair and collaborative discussion with URCA on the USO and universal service fund for the continued advancement of the electronic communications sector in The Bahamas.”
Deltec demands $33m ‘stolen’ funds damages
FROM PAGE B1
contractually entitled to keep funds that it was entrusted to transmit. After an incredulous response from Deltec’s counsel demanding answers, Ibanera abandoned that argument and now contends that Ibanera cannot transmit Deltec’s funds because Ibanera is ‘under audit’ in Singapore”.
The Bahamian financial institution is demanding that Ibanera be ordered to effect “the immediate release” of this $18m and pay “additional damages... of no less than $15m” due to the “interruption of services, interference with business relationships, and third party claims” that have resulted from the funds being withheld.
The lawsuit alleges that Deltec signed an agreement on July 18, 2024, where “Ibanera promised to hold Deltec’s funds in trust for Deltec, and Deltec would pay Ibanera a fee to process transactions on Deltec’s behalf in certain jurisdictions where Deltec required a money services business.
“In other words, while Ibanera has possession of Deltec’s funds, Deltec at all times has and retains beneficial ownership of the funds. Because Ibanera ‘holds in trust’ funds on behalf of Deltec, it owes fiduciary duties to Deltec, the owner of the funds, and must act with honesty, transparency and in the best interests of the owner of the funds,” the Bahamian financial institution asserted. It alleged that Ibanera used an intermediary agent, IO, to process its fund transfer requests. “On January 6, 2025, Deltec instructed Ibanera, through IO, to transfer millions in mixed fiat from Deltec’s segregated client account at Ibanera to Deltec’s account with BTG. That same day, IO confirmed the transaction request, and Deltec instructed IO and Ibanera to proceed. However, Ibanera did not release the funds,” Deltec alleged. Despite informing the two money payment providers that the transfer was “urgent”, the transaction had yet to occur nine
days later on January 15, 2025. Deltec wrote to both: “Please note that some of these currency transfers are being executed to cover overdraft balances, which we are accruing overdraft interest daily.” IO replied one day later, saying it had “escalated” Deltec’s request with Ibanera. However, the funds were still not released and Deltec on January 31, 2025, was forced to request the transfer for a sixth time. “Deltec emphasised how it was being harmed by Ibanera’s failure to release the funds,” the lawsuit alleged.
The Bahamian bank and trust company wrote:“[W] e have overdrawn accounts and pending outgoing wires to execute, and the required funds are being held by Ibanera’. Deltec requested that the funds be released by February 4, 2025, and once again emphasised the urgent nature of the transfer, stating ‘we have been more than considera[t]e in getting the below transfers out of Ibanera, however it is now past that urgent level and could end up in
Uncertainty if GB assets in Hutchison’s global port exit
joint venture between Port Group Ltd, the Grand Bahama Port Authority (GBPA) affiliate, and Hutchison in which the latter has Board and management control.
A well-placed GBPA source, speaking on condition of anonymity, indicated there had been no advance warning of the deal - and whether Freeport Harbour Company is included or not - from Hutchison as they were learning of the announcement at the same time as Tribune Business However, other contacts suggested that the relationship between the GBPA and Hutchison is not a strong one at presence.
Multiple attempts were made to reach Godfrey Smith, the Freeport Container Port’s chief executive, for clarification and comment, but Tribune Business was informed its entire management team was in meetings and no reply was received before press time. This newspaper was told a
representative would reach out at a later time. Ginger Moxey, minister for Grand Bahama, also did not respond to written messages seeking comment. Staff at the Ministry of Grand Bahama indicated she was attending Cabinet meetings yesterday. The Bahamas Investment Authority (BIA), meanwhile, said no application seeking government approval for a change in ownership at Freeport Container Port or Freeport Harbour Company had been submitted before press time. Blackrock, which oversees $11.5 trillion in assets and is regarded as the world’s largest investment firm, has partnered on the deal with Terminal Investment Ltd, the port operations and infrastructure arm for MSC. The latter has long been Hutchison’s partner in the Freeport Container Port, and also the facility’s main customer, while also acting as a key cargo freight and
NOTICE IS HEREBY GIVEN that in accordance with section 138(6) of the International Business Companies Act, 2000, as amended, the winding up and dissolution of Aequitas International Strategies Fund Ltd. is complete.
L. Michael Dean Sole Liquidator Address: Equity Trust House Caves Village West Bay Street P O Box N-10697 Nassau, Bahamas
litigation if these wires are not executed’.”
Faced with silence, “Deltec’s in-house legal counsel, Lanecia Darville, sent a demand letter to Carbonara” on February 3, 2025. “In the letter, Deltec again demanded the immediate release and transfer of funds held by Ibanera in Deltec’s segregated client account. Deltec reiterated that Ibanera’s delay in executing Deltec’s instructions ‘impedes our ability to meet our financial obligations to our clients and stakeholders’,” the claim alleged.
Ibanera purportedly replied on February 11, 2025, asserting that Deltec “somehow” failed to fully comply with its obligations under both sides’ agreement and that the money payment provider had suffered “unspecified” significant losses as a result. No details were provided to support the allegation, but Ibanera argued this justified withholding the $18m it held in trust for Deltec.
The Bahamian financial institution, asserting that this was a “baseless” reason for retaining its funds for almost two months, said Ms Darville wrote to Ibanera again on February 21, 2015, accusing it of seeking “a pretext to unlawfully” withhold” Deltec’s funds. She demanded their immediate release and transfer,
to which Ibanera said the funds were protected and not being misused.
Deltec, though, said Ibanera then claimed that it needed to retain and preserve the funds due to an audit by the Singapore regulators, who oversee its business, as well as its own internal probe and investigation. “Despite this new excuse for non-performance, Ibanera has no right to withhold Deltec’s funds from Deltec - and Ibanera has pointed to no such basis in law or fact,” Deltec alleged.
“Ibanera’s failure to release Deltec’s funds has led to damages, including at least $11.037m plus more than $7m worth of other fiat, interest on the unlawfully withheld funds, and additional damages that Deltec has suffered and will continue to suffer as a result of Ibanera’s breach, in an amount of no less than $15m due to interruption of services, interference with business relationships, third party claims, and other damages.”
Deltec, though, has fared better in recovering funds seized by the US Secret Service during its probe into a multi-million dollar international crypto currency scam. Of the $44.828m taken, the US will retain only $7m, with the majority $37.828m to be paid by the
US Treasury Department to Deltec.
“The United States will initiate the return of $31.353m of the seized funds upon the filing of its civil forfeiture complaint. The return of the remaining $6.475m from the defendant funds to the claimant is contingent upon the court entering a judgment forfeiting the sum of $7m to the United States,” the two sides’ settlement deal stipulates.
The US Secret Service had previously alleged that the funds represented laundered fraud proceeds generated by a scam known as “pig butchering”. This involves scammers and con artists setting up “spoofed” Internet domains and websites, with addresses and features similar to those of legitimate crypto currency trading and investment platforms. They then target victims with “unsolicited” phone calls, using techniques common to those employed in so-called ‘romance’ frauds to groom them, develop a relationship and gain their confidence. Finally, the victims are fooled into investing in crypto currency via the fake platforms that have been created, with the fraudsters stealing all their money.
logistics provider to Nassau and New Providence.
MSC has also teamed with Royal Caribbean, ITM Group and Freeport Harbour Company on Freeport Harbour’s longplanned redevelopment. And, together with Royal Caribbean and Freeport Harbour Company, it is also aiming to transform Billy Cay into a new cruise port and amusement park.
Several sources, speaking to Tribune Business on condition of anonymity, suggested that any Freeport Container Port takeover by the combination of MSC and Blackrock could revive the former’s long-standing interest in the city and wider Grand Bahama.
And they argued that this could also boost the Government in its ongoing $357m arbitration claim against the Grand Bahama Port Authority (GBPA) given previous suggestions that it was seeking to line up MSC as a potential private sector buyer of the quasi-governmental
authority’s key economic assets such as the Freeport Harbour Company and Grand Bahama Development Company (DevCo). Hutchison’s exit from all non-China port operations, which has only been agreed ‘in principle’ and has yet to be translated into a binding deal or closed, is likely to have at least been accelerated and influenced by newly-elected US president, Donald Trump’s, hostility to its port operations in the Panama canal zone. Both are included in the proposed sale.
Also included are another “43 ports comprising 199 berths in 23 countries, together with all Hutchison Port Holdings’ management resources, operations, terminal operating systems, IT and other systems, and other assets appertaining to control and operations of those ports”. Subtracting $5bn in existing debt from the $22.8bn gross purchase price delivers the net value of $17.165bn. The deal is supposed to close by April 2.
Diego Aponte, MSC’s president and chairman of Terminal Investments Ltd, said: “Our relationship with Hutchison Ports goes back a long way and
is a relationship of mutual respect and friendship.
Furthermore, we are very pleased to partner with BlackRock and Global Infrastructure Partners (GIP), with whom we share a long-standing and terrific relationship.
“We have a very high regard toward the Hutchison Ports management team, and if this transaction closes, we look forward to welcoming them into our larger family. We are very focused on this industry, and we know that the investment in Hutchison Ports will be a very viable investment commercially.”
Frank Sixt, co-managing director of C Hutchison, added: “This transaction is the result of a rapid, discrete but competitive process in which numerous bids and expressions of interest were received. As a result, the transaction valuation agreed in principle is compelling, and the transaction is clearly in the best interest of our shareholders.
“After adjusting for minority interests and repayment of certain shareholder loans due from Hutchison Port Holdings to CK Hutchison, the transaction would be expected
to deliver cash proceeds in excess of $19bn to our group. I would like to stress that the transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama ports.
“It must be noted that, however, the transaction does remain subject to confirmatory due diligence, settlement of definitive documentations, and normal and usual completion procedures, adjustments and conditions as well as compliance by Hutchison Port Holdings with the rights of minority shareholders under existing shareholders agreements relating to the sold Hutchison Port Holdings interests.”
Notice is hereby given that, in accordance with Section 138 (8) of the International Business Companies Act, No.45 of 2000, the Dissolution of LSL Investment Ltd. has been completed, a Certifcate of Dissolution has been issued and the Company has therefore been struck of the Register.
Te date of completion of the Dissolution was the 24th day of January, 2025
Dow drops nearly 650 points on worries that Trump’s latest tariffs will slow the economy more
By STAN CHOE AP Business Writer
U.S. stocks tumbled Monday and wiped out even more of their gains since President Donald Trump 's election in November, after he said that tariffs announced earlier on Canada and Mexico would take effect within hours.
The S&P 500 dropped 1.8% after Trump said there was "no room left" for negotiations that could lower the tariffs set to begin Tuesday for imports from Canada and Mexico. Trump had already delayed the tariffs once before to allow more time for talks.
Trump's announcement dashed hopes on Wall Street that he would choose a less painful path for global trade, and it followed the latest warning signal on the U.S. economy's strength. Monday's loss shaved the S&P 500's gain since Election Day down to just over 1% from a peak of more than 6%. That rally had been built largely on hopes for policies from Trump that would strengthen the U.S. economy and businesses.
The Dow Jones Industrial Average dropped 649 points, or 1.5%, and the Nasdaq composite slumped 2.6%.
Monday's slide punctuated a rocky couple of weeks for Wall Street. After the S&P 500 set a record last month following a parade of fatter-than-expected profit reports from big U.S. companies, the market began diving following weakerthan-expected reports on the U.S. economy, including a couple showing U.S. households are getting much more pessimistic about inflation because of the threat of tariffs.
The latest such report arrived Monday on U.S. manufacturing. Overall activity is still growing, but not by quite as much as economists had forecast. Perhaps more discouragingly, manufacturers are seeing a contraction in new orders. Prices, meanwhile, rose amid discussions about who will pay for Trump's tariffs.
"Demand eased, production stabilized, and destaffing continued as panelists' companies experience the first operational shock of the new administration's tariff policy," said Timothy Fiore, chair of the Institute for Supply Management's manufacturing business survey committee.
The hope on Wall Street had been that Trump was using the threat of tariffs as a tool for negotiations and
that he would ultimately go through with potentially less damaging policies for the global economy and trade. But Trump's going forward with the Mexican and Canadian tariffs hit a market that wasn't certain about what would happen next.
The market's recent slump has hit Nvidia and some other formerly highflying areas of the market particularly hard. They fell even more Monday, with
SUPER VALUE CHIEF: ‘$500K GAMBLE PAID OFF’
amid questions over their origin, date, quality and nutritional value. Super Value itself had also tested the eggs’ condition itself by boiling and frying them.
The supermarket chain had signs posted on its store doors early yesterday morning informing consumers they were restricted to purchasing a maximum of two lower-priced egg cartons following Monday’s shopping rush. However, these signs were subsequently removed, and the limit was doubled to four.
“We had, let’s say, you could almost describe them as riots,” Mr Roberts said, after news of Super Value’s lower-priced eggs spread rapidly on Monday. “The customers were snatching eggs from one another, dropping them. It was chaos. I didn’t know eggs, and I have to feel for the word, were in such demand.
“We had six containers in. We had to stop selling them by the case and we had to ration them. Now we’ve gone back to four per customer until the new shipment comes in. There’s another shipment coming in this Tuesday coming.”
That will be four containers
and, thereafter, the weekly egg imports will rise to six containers.
“That’s all they could put together that fast,” Mr Roberts said of this Tuesday’s four-container shipment.
“We can increase [the order] at any time. We’ll adjust the order according to sales. For an experiment to bring the price down, we put just under $500,000 into this [first] container.
“I would kind of say we have been gambling, but it paid off. We did bring the price down and the demand for eggs is certainly there. We’ve taken the public off noodles and sausage and put them on high-protein eggs at one-third of the price it used to be. I think our gamble paid off.
“They [the supplier] can supply 67 containers a month. I cannot see us getting up to that. I can see us getting up into the 30’s. We’re in the 30’s now, but I can’t see us doubling to get to 60-plus containers a month.” Mr Roberts did not name the source of Super Value’s low-priced egg imports, although it is thought to be another Caribbean country.
The Super Value chief said the first shipment, totalling some 1.296m eggs,
NOTICE
NOTICE is hereby given that VICTORIA MILFORT of Market Street, New Providence, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 26th day of February, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that JEANNETTE LUCIEN of Island Drive, Fire Trail Road, New Providence, Bahamas, is applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 26th day of February, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
would “have sold out in 24 hours” had all six containers been distributed to its stores. Instead, it filled its outlets with “one and a half containers”, and had to do so again on Monday after the initial inventory was bought up.
“For house wives to get in we stopped selling wholesale - to vendors, restaurants and hotels - so that everybody got some,” Mr Roberts explained. “We had to limit it to two and, when we checked the inventory this morning, we decided to let the house wives have four. If we run out, we run out, but only if it’s for several days.
“I hope everybody gets some. That’s what we’re trying to do, spread the joy, so that everybody gets some of the low price. I think that’s what has happened. That’s what our goal was. I think the gamble paid off. We were doing other business with that country, found they had rice, sugar and eggs, so we ordered.”
Mr Roberts and Mr Fernander both said Super Value would not have been able to import its own egg brand unless they passed all health and safety inspections by Bahamian regulators. Some
Nvidia down 8.8% and Elon Musk's Tesla down 2.8%.
Elsewhere on Wall Street, Kroger fell 3% after the grocery chain's Chairman and CEO Rodney McMullen resigned following an internal investigation into his personal conduct.
Wall Street's blue Monday even pulled down stocks of companies enmeshed in the cryptocurrency economy, which had risen strongly in
consumers had voiced concerns over the shipment’s origin after it was reported that the Turks & Caicos had destroyed almost 25,000 eggs it imported from the Dominican Republic.
Those, though, were imported illegally without going through that island territory’s regulatory and approval processes. In contrast, Mr Roberts said Super Value’s initiative had to pass through the Bahamas Agricultural Health and Food Safety Authority (BAHFSA), as well as the other health and agriculture regulators.
“We had to clear those three and we were airborne,” he said. “Once we had those three permits we ordered. To clear, you have to submit your invoice to those three departments. We know the eggs are safe, or course, before we offer them to the public. We brought them in, and we tested them ourselves. They looked OK raw, boiled were fine, and fried were fine.”
Mr Fernander added: “The eggs we have imported have met the requirements, standards and quality of what is required by law and regulation. They were deemed safe, and we got all the permits before we ordered. These eggs have met industry standards.”
Some 16 further containers have already been ordered by Super Value.
“This morning there was something like a
NOTICE
NOTICE is hereby given that KEISHA HARRIOTT of #20 Cumberbatch Alley, New Providence, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 26th day of February, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that CHRISTEEN SCARLETT HUTCHENSON of P.O. Box N3399 New Zeland Court, Flamingo Gardens, New Providence, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 5th day of March, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
Average dropped 649.67 to 43,191.24, and the Nasdaq composite slumped 497.09 to 18,350.19. Across the Pacific in China, manufacturers reported an uptick in orders in February as importers rushed to beat higher U.S. tariffs and a Chinese state media report said that Beijing was considering ways to retaliate.
Trump had imposed a tariff of 10% on imports from China, and that's scheduled to rise to 20% beginning Tuesday. He also ended the "de minimis" loophole that exempted imports worth less than $800 from tariffs.
the morning. They initially bounced after Trump said over the weekend that his administration was moving forward with a crypto strategic reserve.
But MicroStrategy, the company that's now known as Strategy and has been raising money to buy bitcoin, slid to a loss of 1.8%. Coinbase, the crypto trading platform, fell 4.6%.
All told, the S&P 500 fell 104.78 points to 5,849.72.
The Dow Jones Industrial
container-and-a-half to go out,” Mr Roberts said. “I hope we have enough to last us until Tuesday. We want to reassure consumers that if we run out, in a couple of days we’ll have them back in and we’ll have enough to distribute to the market. We want to make sure the house wife is able to buy enough to get these low prices going.
“In fact, I’m investigating something that I hope gets the price down by another $1. In the meantime, what’s been happening in the US market is that there’s been no bird flu for a while, and the farmers are building inventory and consumers are pushing back on the price. I expect the prices in the US market to go back to normal - I don’t want to
In Hong Kong, Chinese bubble tea chain Mixue Bingcheng's stock soared 43% following its $444 million debut on the market. The company claims to be the world's largest food retail chain, with more than 45,000 outlets, and its jump came as the Hang Seng index rose 0.3%. Indexes rose by even more across Europe and in Tokyo. European markets leaped after a report showed an easing of inflation in February. That should help the European Central Bank, which investors widely expect will deliver another cut to interest rates later this week.
say fairly soon - but that’s where it’s headed.”
While rough seas have prevented the low-priced eggs from reaching Abaco, Mr Roberts said Super Value had “sacrificed” its already-thin egg earnings to deliver the lower prices.
“We took a big risk to do this,” he added. “Almost $500,000. We cut our profits from, let’s say 10 percent on $9.89 a carton, down to 10 percent on $3.79. We sacrificed our profit to give consumers this new lower price.
“I hope over-enthusiasm dies down. Once the public knows they can buy eggs at this price any time they want then, this good problem to have will probably go away.”
NOTICE
NOTICE is hereby given that CLAUDIUS OMODELE EMMANUEL COLE of #41 Sear Road, New Providence, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 5th day of March, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that WINSTON HARRIOTT of #20 Cumberbatch Alley, New Providence, The Bahamas applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 26th day of February, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE is hereby given that WADNELL DORVILUS of Great Guana Cay, Abaco, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 5th day of March, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
PEOPLE work on the floor at the New York Stock Exchange in New York, Thursday, Feb. 27, 2025.
Photo:Seth Wenig/AP
Low energy prices sting Aramco profits and squeeze Saudi development plans
By JON GAMBRELL Associated Press
SAUDI Arabia's stateowned oil giant Aramco reported a $106.25 billion profit in 2024 on Tuesday, down 12% from the prior year as lower energy prices now squeeze the kingdom's multi-trillion-dollar development plans.
Already, Saudi's de facto ruler Crown Prince Mohammed bin Salman has been digging for the $500 billion project to build the straight-line city of NEOM in Saudi Arabia's western desert on the Red Sea. He also will need to build tens of billions of dollars' worth of new stadiums and infrastructure ahead of the kingdom hosting the 2034 FIFA World Cup.
Meanwhile, he's also pledged potentially $600 billion in investments in the U.S. to entice President Donald Trump to the kingdom on his first foreign trip as president. Saudi Arabia is also the possible venue for a meeting between Trump and Russian President Vladimir Putin over Moscow's war on Ukraine.
All that and OPEC+ moving toward increasing production means Saudi Arabia likely will need to take on new debt to fund the crown prince's vast ambitions.
Earnings stung by lower oil prices
A filing on Riyadh's Tadawul stock exchange showed Aramco, formally known as the Saudi Arabian Oil Co., had revenues of $436 billion in 2024. That compares to $440.88 billion in 2023.
Aramco reported a $121 billion annual profit in 2023, down from its 2022 record due to lower energy prices as well.
"The decrease was primarily driven by lower revenue and other income related to sales, higher operating costs, as well as lower finance and other income," Aramco said in its filing.
Stock in Aramco traded just over $7 a share Tuesday, down from a high over the last year of $8.71. It has fallen over the past year as oil prices have dropped. Benchmark Brent crude traded Tuesday at around $70 a barrel, down over 15% over the last year.
Aramco has a market value of $1.74 trillion, making it the world's sixthmost valuable company behind Apple, Microsoft, NVIDIA, Amazon and Alphabet, which owns Google.
Aramco will pay dividends of $21.36 billion for the fourth quarter, which includes a far-smaller
Trump says 25% tariffs on Mexican and Canadian imports will start Tuesday, with ‘no room’ for delay
By JOSH BOAK, ZEKE MILLER and ROB GILLIES Associated Press
PRESIDENT Donald Trump said Monday that 25% taxes on imports from Mexico and Canada would start Tuesday, sparking
performance dividend of $220 million. The company expects to pay dividends of $85.4 billion this year, which is far lower and will further erode cash that Saudi Arabia's monarchy can expect for the year.
Speaking to analysts on a call Tuesday afternoon, Aramco CEO and President Amin H. Nasser said the company had capacity to bring online 3 million barrels of additional crude oil a day. Each additional million barrels a day would mean $12 billion in revenue a year, he said.
"Global oil inventory levels have declined to around five-year lows,
SAUDI Arabia’s state-owned oil company Armco and stock market officials walk under a screen displaying the value traded and the volume traded of Aramco’s initial public offering (IPO) on the Riyadh’s stock market in Riyadh, Saudi Arabia, on Dec. 11, 2019.
which means there are potential risks related to geopolitical instability and volatility," Nasser said, suggesting crude prices could rise over time due to that.
"Against this backdrop, Aramco remains ready for all scenarios."
Geopolitical headwinds squeeze kingdom's coffers
The Aramco results come as OPEC+, an alliance of the oil cartel and other energy-producing states, met online Monday and agreed to proceed with an increase in oil production starting in April. It's the first oil production increase by the group since 2022 and likely will push down oil prices further. The increase slowly will add up to 2.2 million barrels of additional crude oil a day over the coming months.
"This is not the opening of the floodgates," wrote Bjarne Schieldrop, the chief commodities analyst at SEB Research. "It is about lowering the oil price to a level that is acceptable for Putin, (Prince Mohammed), Trump, U.S. oil companies and the U.S. consumers." The OPEC+ decision follows criticism by Trump of the cartel as well.
Amr Nabil/AP
Experts suggest the price per barrel for oil could sink to the $60 range, further tightening budgets in Saudi Arabia.
"The news that Aramco ... will cut its dividend payout this year will put a dent in the kingdom's public finances and, together with a likely decline in the state's oil revenues, may ratchet up pressure for more fiscal tightening," wrote James Swanston, the senior Middle East and North Africa economist at Capital Economics.
Saudi Arabia's vast oil resources, located close to the surface of its desert expanse, make it one of the world's least expensive places to produce crude. For every $10 rise in the price of a barrel of oil, Saudi Arabia stands to make an additional $40 billion a year, according to the Institute of International Finance.
The Saudi government owns the vast majority of the firm's shares. Saudi Aramco publicly listed a sliver of its worth back in late 2019 and has weighed offering more shares publicly.
renewed fears of a North American trade war that already showed signs of pushing up inflation and hindering growth. "Tomorrow — tariffs 25% on Canada and 25% on Mexico. And that'll start," Trump told reporters in the Roosevelt Room. "They're going to have to have a tariff."
Trump has said the tariffs are to force the two U.S. neighbors to step up their fight against fentanyl trafficking and stop illegal immigration. But Trump has also indicated that he wants to eliminate the Americas'
trade imbalances as well and push more factories to relocate in the United States. His comments quickly rattled the U.S. stock market, with the S&P 500 index down 2% in Monday afternoon trading. It's a sign of the political and economic risks that Trump feels compelled to take, given the possibility of higher inflation and the possible demise of a decades-long trade partnership with Mexico and Canada as the tariffs would go into effect at 12:01 a.m. Tuesday.
Yet the Trump administration remains confident that tariffs are the best choice to boost U.S. manufacturing and attract foreign investment. Commerce Secretary Howard Lutnick said Monday that the computer chipmaker TSMC had expanded its investment in the United States because of the possibility of separate 25% tariffs. In February, Trump put a 10% tariff on imports from China. He reemphasized Monday that the rate would be doubling to 20% on Tuesday.
Trump provided a onemonth delay in February as both Mexico and Canada promised concessions. But Trump said Monday that there was "no room left for Mexico or for Canada" to avoid the steep new tariffs, which were also set to tax Canadian energy products such as oil and electricity at a lower 10% rate.
Canada Prime Minister Justin Trudeau said Monday that "there is no justification" for Trump's tariffs.
"Because of the tariffs imposed by the U.S., Americans will pay more for groceries, gas and cars, and potentially lose thousands of jobs," he said. "Tariffs will disrupt an incredibly successful trading relationship. They will violate the very trade agreement that was negotiated by President Trump in his last term."
Trudeau said his country will retaliate by putting 25% tariffs on American goods worth $155 billion Canadian ($107 billion U.S.) over the course of 21 days, starting with tariffs on $30 billion Canadian ($21 billion U.S.) after midnight Tuesday. Mexico President Claudia Sheinbaum went into Monday waiting to see what Trump would say.
"It's a decision that depends on the United States government, on the United States president," Sheinbaum said ahead of Trump's statement. "So whatever his decision is, we will make our decisions and there is a plan, there is unity in Mexico."
Both countries have tried to show action in response to Trump's concerns. Mexico sent 10,000 National Guard troops to their shared border to crack down on drug trafficking and illegal immigration. Canada named a fentanyl czar, even though smuggling of the drug from Canada into the United States appears to be relatively modest.
As late as Sunday, it remained unclear what choice Trump would make on tariff rates. Lutnick told Fox News Channel's "Sunday Morning Futures" that the decision was "fluid." "He's sort of thinking about right now how exactly he wants to play it with Mexico and Canada," Lutnick said. "And that is a fluid situation. There are going to be tariffs on Tuesday on Mexico and Canada. Exactly what they are, we're going to leave that for the president and his team to negotiate."
Treasury Secretary Scott Bessent said Mexico has also offered to place 20% taxes on all imports from China as part of talks with the United States.
Bessent told CBS News on Sunday that China would "eat" the cost of the tariffs, instead of passing them along to the U.S. businesses and consumers that import their products in the form of higher prices. But companies ranging from Ford to Walmart have warned about the negative impact that tariffs could create for their businesses. Similarly, multiple analyses by the Peterson Institute for International Economics and the Yale University Budget Lab suggest that an average family could face price increases of more than $1,000.
"It's going to have a very disruptive effect on businesses, in terms of their supply chains as well as their ability to conduct their business operations effectively," said Eswar Prasad, an economist at Cornell University. "There are going to be inflationary impacts that are going to be disruptive impacts."
Photo:
PRESIDENT Donald Trump talks during a meeting with British Prime Minister Keir Starmer, at the White House, Thursday, Feb. 27, 2025, in Washington. Photo:Carl Court/AP
Mexico says it will impose retaliatory tariffs on US with details coming Sunday
By MEGAN JANETSKY and MARÍA VERZA Associated Press
MEXICO'S president said Tuesday the country will respond to the 25% tariffs imposed by the United States with retaliatory tariffs on U.S. goods, with details to come.
Mexico will announce the targeted products and other measures Sunday at an event in Mexico City's central plaza, a delay that suggests Mexico hopes to de-escalate the trade war set off by U.S. President Donald Trump.
President Claudia Sheinbaum said the government is "going to wait" because she had planted to speak to Trump this week. Mexico's government has said since January it had a plan ready for this scenario.
"There is no motive or reason, nor justification that supports this decision that will affect our people and our nations," Sheinbaum added.
China and Canada responded immediately with measures Tuesday.
Lutnick says US could work out a deal with trade partners Hours later, after stock markets took a hit, U.S. Secretary of Commerce Howard Lutnick said in a video posted to X that he was on the phone "all day" with Mexican and Canadian authorities.
Lutnick said it appeared the government was going to "work something out" with the trade partners, a deal that could be announced on Wednesday. "It's not going to be a pause. None of that pause stuff," he said. "Somewhere in the middle will likely be the outcome."
Some 80% of Mexico's exports go to the United States, part of more than $800 billion in trade between the countries last year.
Sheinbaum called "offensive, defamatory and without support" the White House allegations that Mexican drug traffickers persist because of "an intolerable relationship" with the Mexican government. Trump has said he's targeting Mexico to force it
to crack down on migrants and drugs entering the U.S.
She listed the achievements of her young administration against Mexico's drug cartels, including seizing more than a ton of fentanyl and dismantling 329 methamphetamine labs. She also noted that Mexico sent the U.S. 29 drug cartel figures it requested last week.
"It's inconceivable that they don't think about the damage this is going to cause to United States citizens and businesses," Sheinbaum said. "No one wins with this decision."
Mexico's president also noted that Trump on Monday said he respected her, and she said she respected him as well: "The thing is finding a way to collaborate, of coordinating without subordinating anyone for the benefit of our people."
Trade experts expressed doubt over how long Trump's tariffs would last, saying they would boost prices for American consumers including Trump's base.
"It is going to do nothing to help with the food inflation in the U.S.," said Timothy Wise, an expert on
gestures towards trucks lining up to cross the border into the United States as tariffs against Mexico go into effect, Tuesday, March 4, 2025, in Tijuana, Mexico.
agricultural trade between Mexico and the U.S. "I don't see it as sustainable. I don't find it plausible that corporate folks who surround Trump are going to sit back and allow him to destroy their foreign markets."
Tariffs could boost inflation, slow economic growth for both US and Mexico Gabriela Siller, economic analyst with Mexican financial group Banco Base, said in the short term, the tariffs could boost inflation, disrupt economic trade flows and slow economic growth for both countries.
But as she watched the gradually falling Mexican peso, she also noted "the exchange rate and volatility have not skyrocketed, as the market speculates that the U.S. government could withdraw the tariffs soon."
Mexico has the most to potentially lose in a trade war with the U.S., and economists say extended tariffs
would plunge Mexico's economy into a recession.
But for now, Sheinbaum's approval ratings in Mexico are sky high. She has fanned nationalist sentiment since before Trump took office, frequently invoking Mexico's sovereignty, promising it will negotiate from a position of equals and pushing back on Trump's name change of the Gulf of Mexico to Gulf of America.
Sunday's public event announcing Mexico's retaliation will look to seize upon Sheinbaum's popularity and the sense of national unity.
Still, that was little comfort to those whose livelihoods could be most affected.
At the U.S.-Mexico border, 58-year-old truck driver Carlos Ponce drove his truck packed with auto parts from Ciudad Juarez to El Paso, Texas, as he's done for decades.
MARINE FORECAST
SUSANO CORDOBA, right,
Photo:Gregory Bull/AP