EMF's maritime investments are well shielded from tariff fluctuations
April witnessed significant geopolitical developments, although recent decisions have eased some immediate pressures. The United States has paused its newly announced tariffs for 90 days, creating room for negotiations and mitigating short-term risks for maritime markets.
Previously, the United States had proposed broad tariffs, including a 10% tax on all imports, with higher rates for China, the EU, and Japan. While container shipping and car carriers felt the initial impact, the tanker and gas markets remained largely shielded. Oil and refined products were exempt, and crude flows from Canada and Mexico supported maritime trade.
The U.S. automotive tariff could pose a significant hurdle
The threat of a 25% U.S. tariff on foreign-built vehicles has created headwinds in the car carrier segment. Although vehicles manufactured in China account for a small portion of U.S. imports, broader risks to car volumes persist depending on the progress of negotiations.
Gas carriers, including the LPG and LNG segments, experienced limited direct impact. However, China's retaliatory tariffs on U.S. LPG have introduced short-term uncertainty, although the 90-day pause provides an opportunity for stabilization.
Revised U.S. port fees lead to minor adjustments
Towards the end of the month, the United States released a revised proposal for port fees targeting ships built and operated by China. The new structure is less aggressive, having minimal impact on tankers, bulk carriers, and LPG carriers, including EMF's fleet built in South Korea. For car carriers, a manageable flat rate will be introduced, with a three-year adjustment period.
Despite ongoing trade tensions, the impact on our invested shipping segments has been limited so far, with shifting trade flows supporting several sectors.
Sources : Clarksons, Fearnleys, Reuters, USTR