Daily Update — April 4, 2025
New US Tariffs; Amazon’s Water Stewardship; and Datacenter Demand Concerns
Today is Friday, April 4, 2025, and here’s your curated selection of essential intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.
Global Trade
US announces 10% baseline global tariff on imports, excluding most energy
On April 2, US President Donald Trump announced a significant escalation in trade tariffs targeting imports from major trading partners, introducing a 10% baseline minimum tariff on all imported goods. This move includes a sliding scale of reciprocal tariffs, notably imposing a 34% tariff on imports from China, which adds to existing duties on specific Chinese products. The EU and other significant partners will face a 20% tariff as well. Canada and Mexico are exempt from the new tariffs as the existing tariff regime under the United States-Mexico-Canada Agreement remains intact, allowing compliant goods to continue entering the US tariff-free.
The announcement has drawn mixed reactions, particularly from the energy sector, which welcomed the exclusion of oil and natural gas from the new tariffs. Concerns arose in the market as crude futures dropped following the announcement, with analysts warning the tariffs could negatively impact global economic growth and oil demand.
Register for S&P Global Market Intelligence's upcoming webinar, Adrift in a Sea of Tariffs: Q2 2025 Supply Chain Outlook.
Energy Transition & Sustainability
Listen: Exploring tech giant Amazon's approach to water stewardship
The UN’s annual World Water Day observance took place March 22 in support of the sustainable development goal to ensure water and sanitation for all by 2030.
In this episode of the “All Things Sustainable” podcast, S&P Global Sustainable1 dove into the water stewardship practices at Amazon, one of the world’s largest companies with a market capitalization of over $2 trillion. Amazon Water Sustainability Lead Will Hewes outlined the company's approach to water in the communities it serves and across its business lines. One of the company’s goals is to return more water to communities than it uses in its datacenter operations by 2030.
Artificial Intelligence
US lawmakers address 'astounding' AI datacenter power demand projections
Experts presented alarming statistics on the expected growth of datacenter power demand. Mark Mills, executive director of the National Center for Energy Analytics, noted that a datacenter can consume more electricity than a typical steel mill. The PJM Interconnection anticipates a significant rise in mid-Atlantic systemwide peak demand in the next five years to 185 GW from about 150 GW. Despite advancements in data-processing chip efficiency, the demand for AI-driven services is expected to outpace these gains. Potential solutions were also discussed, including the use of small modular nuclear reactors at retired power plant sites, although experts cautioned that this technology remains a decade away from viability.
In case you missed it
- Singapore bunker supplier Golden Island said it plans to start bunkering trials of low-carbon methanol with its new build Singapore-flagged bunker tanker in July.
- The EU may need to answer industry calls for higher imports of Russian gas if a peace deal is reached between Russia and Ukraine.
- Helsinki utility Helen shut down its last coal-fired power plant, ending the era of coal in Finland.
Upcoming events
- Latin America Spotlight: Corporate and Infrastructure Ratings | April 8 (Webinar)
- Apple, Nvidia, and the APAC in the Tariff Era | April 10 (Webinar)
- Sustainable1 Summit 2025 | April 30 (In-person: London) and June 26 (In-person: Singapore)