Good morning, folks. It’s a busy morning with news pouring in from around the region, as well as an update on the trade war that’s brewing between the US and China. Let’s dive right in.

WATCH THIS SPACE-

#1- The US has gone on the offensive in the trade war with China, with the White House announcing a raft of tariff increases on USD 18 bn worth of Chinese imports that will each begin taking effect between 2024 and 2026.

Biden has his eyes set on green tech, deciding thattariffs on Chinese EVs will quadruple to 100%, those on lithium-ion EV batteries to more than triple to 25%, those on solar cells to double to 50%. And he hasn’t forgotten about semiconductors, as tariffs on chips from the world’s second biggest economy are set to double to 50%.

SPEAKING OF CHINA- Is the China-Gulf trade agreement in jeopardy? Trade talks between the Gulf Cooperation Council (GCC) and China are hitting a wall as Saudi remains concerned that low-cost Chinese products could hinder its efforts to boost domestic manufacturing and become an industrial powerhouse, Reuters reports, citing sources it says are in the know. The agreement is not yet entirely off the table, but will require compromises from both sides of the table to move forward, the sources said.

The last stretch is proving the hardest: Chinese officials said earlier this year that while talks were “90%” of the way there, a number of difficult issues were still on the table. Trade talks first began 20 years ago but lapsed without a conclusion.

IN CONTEXT- NHC signed a cooperation agreement with Chinese-state owned conglomerate Citic to establish an industrial city and logistics zones for building materials and another with Chinese contractor China Machinery Engineering to build 20k homes in NHC projects.

SOUND SMART- With multiple USD bn gigaprojects in the works and a push to add housing in Riyadh and beyond, officials are increasingly wary of ensuring that building materials are available — and that the Kingdom has the construction players able to execute.

#2- Dnata to expand global footprint: Dubai-based air services provider dnata is planning several merger and acquisition transactions globally, the Emirates subsidiary CEO Steve Allen told Reuters, revealing that dnata has “plenty [of transactions] at the end of the pipeline” and is currently in talks with “40 different companies.”

Next destination, Brazil? Allen mentioned that dnata sees South America as a “huge growth market opportunity” for its growth, naming Brazil as one of those high-growth markets.

#3- The world’s first commercial shipment of low-carbon ammonia arrives in Japan: The Abu Dhabi National Oil Company (Adnoc) has delivered the world’s first certified bulk commercial shipment of low-carbon ammonia produced using carbon capture and storage to Japan’s Mitsui, according to a press release. The low-carbon shipment was certified by global certification agency TUV SUD.

About the shipment: The ammonia was produced by Fertiglobe at its Fertil facility located in the Ruwais Industrial City and “will see the CO2 captured and permanently stored in the world’s first fully sequestered CO2 injection well in a carbonate saline aquifer,” the press release notes. This comes as part of the oil giant’s USD 23 bn investment in decarbonization, low-carbon solutions and climate technologies.

#4- Egypt’s General Authority for Investment and Freezones (GAFI) will set up four freezones within the next six months, GAFI deputy chairman Yasser Abbas told the House Economic Committee yesterday. There are currently nine public freezones in the country, according to GAFI’s website.

New private freezones are also in the works: Al Ahly Sabbour Developments and Redcon Construction have filed requests to the government to set up private freezones in New Cairo, while a third undisclosed investor has also filed a request to establish a private freezone in Sharm El Sheikh. The government will soon announce the new licensing requirements for private freezones.

MARKET WATCH-

#1- Oil prices rose in early trading this morning as news broke of wildfires threatening Canada’s oil industry, Reuters reports. Brent crude futures were up to USD 82.71 a barrel by 00.16 GMT US West Texas Intermediate (WTI) rose to USD 78.39 a barrel.

What’s happening in Canada? A large wildfire is approaching Fort McMurray, the hub for the country's oil-sands output, triggering an evacuation order for 6k of the city’s residents. Canada’s oil sands industry produces roughly 3.3 mn barrels daily — approximately two-thirds of the country's total output. A 2016 evacuation order of the city’s 90k residents brought 1 mn barrels per day (bpd) of output to a standstill.

#2-Baltic index falls for third straight session on Monday, yanked by falls in larger segments: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was down 2.96% to 2,066 points on Monday, on the back of a drop in capesize and panamax vessel rates, Reuters reports. The larger capesize segment tumbled 5.59% to 3,108, while panamax fell 0.44% to 2,017, ending seven consecutive sessions of gains. The smaller supramax segment remained stable at 1,485 points, the newswire said.

#3-The Drewry LNG Shipping Equity Index jumped 12.7% between year’s start and 2 May, outperforming the S&P 500 which rose 6.2% during the same period, Drewry reports. Gains in the index were driven by a boost to Nakilat and Golar LNG stock prices, which were buoyed by solid recent earnings by Nakilat and Golar, and vessel acquisitions by Nakilat, Drewry said.

JOIN US IN CAIRO?

Egypt’s top executives and business owners will gather in Cairo on Wednesday, 5 June for the Enterprise Optimism Forum.

On the menu: Blunt talk about a future that sees Saudi Arabia, Egypt, and the UAE at the heart of a more vital Middle East economy.

The goal: To provide an early, actionable roadmap for those who are “long Egypt.”

** Interested in attending? Tap or click here to let us know. Seating is limited and available on an invitation-only basis.

CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Saudi Maritime & Logistics Congress from Wednesday, 18 September to Thursday, 19 September in Dammam. The two-day event looks to gather up to 10k attendees and 200 exhibitors, and will discuss topics including interlinked logistics, developments in supply chains, digitalisation, decarbonisation, the energy transition, and workforce development.

Iran will host the International Exhibition of Rail Transportation and RelatedIndustries from Saturday 18 May to Tuesday 21 May in Tehran. The exhibition looks to attract domestic and international firms to showcase Iran’s local rail manufacturing capabilities and to acquaint industry players with developments made in the industry worldwide.

The UAE will host The Electric Vehicle Innovation Summit from Monday, 20 May to Wednesday, 22 May in Abu Dhabi. The event will see industry leaders come together to discuss sustainable mobility and tapping into groundbreaking advancements in electric vehicles while engaging with key decision-makers.

Saudi Arabia will host the Future Aviation Forum from Monday, 20 May to Wednesday, 22 May in Riyadh. The event, organized by the General Authority of Civil Aviation, will see the Kingdom showcasing some USD 100 bn worth of investment options in the aviation and logistics sector at large.

Barbados will hostUNCTAD’sGlobal Supply Chain Forum from Tuesday, 21 May to Friday, 24 May in Bridgetown. UNCTAD is holding the event in collaboration with the Government of Barbados, which aims to evaluate the role global supply chains have in supporting economic growth, creating jobs, and reducing poverty. Global industry leaders, policymakers and experts will convene to discuss forthcoming issues and explore innovative solutions.

Oman will host the Comex Technology Show from Monday, 27 May to Saturday, 30 May in Muscat. The event will see representation from industry leaders and decision makers to showcase buyer potential in innovative technology, in transportation, logistics, energy and healthcare sectors.

Egypt will host ProPak MENA from Sunday, 26 May to Tuesday, 28 May in Cairo. The conference will see F&B manufacturing industry professionals network and discover the latest equipment and logistic solutions for processing and packaging.

Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.