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Hindustan Times
13-07-2025
- Business
- Hindustan Times
U.S. Allies Grope for Response to Trump's Tariff Squeeze
BRUSSELS—America's biggest trading partners have tried tactics ranging from appeasement to retaliation to avoid higher tariffs. Most have come away bruised and empty-handed. Mexico took Trump's drug-enforcement demands seriously and boosted security measures. The European Union paused retaliation plans to focus on trade talks. Canada hit back with tariffs several months ago before shifting to a more conciliatory approach. All are faced with tariffs that have risen sharply since President Trump took office. This past week he threatened most of them with further escalation. Now they are grappling with how to respond to a U.S. administration that is using trade policy for a range of political and economic objectives. Over the past week, Trump sent letters containing fresh tariff threats to about two dozen countries. Some, including Japan and the EU, had sought to address his concerns in recent months, said Simon Evenett, a professor at IMD Business School who runs Global Trade Alert, a trade-policy monitoring site. But he said it's unclear whether engagement has resulted in better treatment. 'They found out that it's not a negotiation—it's a take-it-or-leave-it situation,' he said. Most countries will probably still try to negotiate a deal ahead of Aug. 1, Evenett said. But they should also start thinking about how to adapt to Trump's tariffs by supporting their exporters and helping companies find new markets, he said. European Commission President Ursula von der Leyen said Sunday that the bloc would keep on hold its retaliatory tariffs until early August while it negotiates with the U.S. She added that the EU is also continuing to ready further countermeasures, 'so we are fully prepared.' French President Emmanuel Macron says the European Union should speed up the preparation of countermeasures in case a trade deal with the U.S. isn't reached. Ambassadors from the EU's member states were due to meet Sunday to discuss Trump's letter, which threatened to increase blanket tariffs on most European goods to 30% from the current 10% level. European officials had believed until recently that progress in their talks with the U.S. meant they wouldn't be among the trading partners receiving a letter last week. The results could change before Aug. 1. Some analysts viewed Trump's letters as a negotiating tactic that aims to put more pressure on governments before next month's deadline. Dan Mullaney, a former assistant U.S. trade representative for Europe and the Middle East, said he thinks Trump's letter to the EU is about pushing the bloc toward a better deal. Trump previously threatened imminent 50% tariffs on the EU in May, in a move that appeared to speed up negotiations. Still, Mullaney said the letter is likely to embolden those in the EU who want to retaliate and have argued that the U.S. isn't serious about doing a deal. 'Those people will feel like they're now justified in their beliefs,' he said. French President Emmanuel Macron said Saturday that the EU should speed up preparation of its countermeasures in case a deal isn't reached, 'by mobilizing all the instruments at its disposal.' He said that includes the EU's so-called anticoercion instrument, a legal tool that could allow the bloc to impose levies on U.S. services, among other measures. Von der Leyen said Sunday that the anticoercion instrument exists for extraordinary situations. 'We are not there yet,' she said. 'This is now the time for negotiations.' She made the comments on Sunday while announcing a political agreement on a trade deal with Indonesia, which she said shows how the EU is looking for new markets. Just two countries have secured outline trade deals with the Trump administration: the U.K. and Vietnam. China and the U.S. reached a tariff truce after a tit-for-tat escalation earlier this year. The range of U.S. trading partners that are now facing new tariff threats from the U.S. shows how difficult it is to draw conclusions from the different approaches countries took in responding to the Trump administration, said Dmitry Grozoubinski, senior trade adviser at Aurora Macro Strategies. Mexico and Canada had a pre-existing trade relationship with the U.S. that was based on the U.S.-Mexico-Canada Agreement, a deal that Trump himself had pushed for during his first term as president, Grozoubinski said. And both countries boosted border security in response to Trump's demands. The EU appeared to be negotiating constructively. And Brazil, which Trump threatened to put 50% tariffs on this week based on grievances not related to trade, imports more American goods than it exports to the U.S., resulting in a trade surplus for the U.S. 'I legitimately do not know what you could possibly advise someone in terms of best negotiating approach, when it is very, very clear that what constitutes an acceptable landing zone is entirely within one person's mind and constantly shifts,' Grozoubinski said. Write to Kim Mackrael at
Reuters
07-07-2025
- Business
- Reuters
Why Trump's trade assault will fail and keep going: podcast
Follow on Apple or Spotify. Listen on the Reuters app. US trade partners are bracing for another presidential tariff deadline. In this episode of The Big View podcast, Richard Baldwin of IMD Business School explains why hostility to US imports is now a bipartisan issue, and why the global trading system can survive Trump's onslaught. Follow Peter Thal Larsen on Bluesky and LinkedIn. (The host is a Reuters Breakingviews columnist. The opinions expressed are his own.) FURTHER READING E-book – The Great Trade Hack: How Trump's Trade War Fails and the World Moves on Muddled US meddling grinds factory gears The EU can play it cool with Trump's trade threats Ducking tariffs is only half of US firms' battle Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices. You may also visit to opt-out of targeted advertising.
Straits Times
27-06-2025
- Business
- Straits Times
3 things to note as an independent director in a family business
Mr Chew Sutat (left), chairman of consultancy Shan De Advisors, and Dr Marleen Dieleman from IMD Business School at a panel discussion held by the Singapore Institute of Directors. PHOTO: SINGAPORE INSTITUTE OF DIRECTORS SINGAPORE – More than half of the 600 companies listed on the Singapore Exchange (SGX) are family-run businesses. So how do independent directors sitting on the boards of such companies navigate the complexities it brings, especially when decisions can be made over the dining table and WhatsApp chats rather than the boardroom? The issues that can arise in family-run businesses were thrust into the spotlight when City Developments Limited (CDL) executive chairman Kwek Leng Beng sued his son Sherman Kwek, who is the property giant's group chief executive officer. The tussle between father and son for control of CDL came to light on Feb 26, and culminated in the older Mr Kwek dropping the lawsuit, but not before matters such as the appointment of independent directors came under public scrutiny. These issues were part of a panel discussion held by the Singapore Institute of Directors on June 25, titled 'When Board Members Disagree – Lessons from Recent Public Disputes' at the Park Royal Collection Marina Bay hotel. Panellists provided tips for the gathered directors, ranging from how to discharge their duties responsibly in the face of opposition and knowing when constructive disagreement becomes destructive. Tips for independent directors: 1. Be sensitive to what is happening within the family, outside the business. There is definitely some spillover between from what happens in the family into the business, said Dr Marleen Dieleman from IMD Business School. Many family businesses are several decades old and could have gone from a second generation of leaders to a third generation of them, which means there might be multiple stakeholders who may not agree on how to run things . 'As a director, we cannot just sit on the board and ignore that these dynamics are going on. Why? Because, if there is a conflict between family members, it will very easily go from constructive conflict to destructive conflict,' she said. 'Being in a family business is a little bit like Hotel California. You can check in, but never leave,' she said, adding that this makes the conflict even more intense. 2. Know who holds the decision-making power in the business. The No. 1 question to ask is: who is the most important person in this family that is making decisions, and then you will find sometimes that that person is not on the board, said Dr Dieleman. Directors also have to think of it not just as a single company, but as a group. 'Most of the companies that are listed here are part of a group. It's rarely ever one company, and that means you have to also map out the group,' she said. This means understanding the related transactions that are going on around the family firm, to see the strategic picture the family has in mind and how one company fits into the bigger whole. 'Look at the spread of the shareholding by family members in the family business – figure out where is the voting power among the family members, because it is not necessarily the person who is the key leader on the board representing the family,' she said. For instance, the ownership of CDL is widely dispersed among many different family members in holding companies . Even in the first generation, the older Mr Kwek had several brothers involved in the group, she added. 'When you deal with family-owned businesses, it's very important to look at the voting structure and to see who will actually have the power to vote one way or another, and when that vote is dispersed, it can be a very complicated story.' 3. The best interests of the company come first Even if it means they may get voted out of the board, the responsibility of independent directors is to always act in the company's best interests . Mr Chew Sutat, chairman of consultancy Shan De Advisors, said: 'When there are disagreements on the board, directors should... try to find a way to influence and get the outcome desired in the interest of the company.' Fellow panellist Rachel Eng, managing director of law firm Eng and Co, said directors also need to choose their battles, especially if they find they are pressured by others on the board to go in a certain direction. She said that arguments can get emotional, and directors can feel that those who do not vote for their views are personally against them. There are also often many decisions to be made, and directors need to differentiate between decisions which are strategic and operational as opposed to those which are problematic or illegal, she said. 'So, first choose your battle. If it is really unlawful, illegal, you have to put your foot down, and immediately you have to step down.' Eng and Co managing director Rachel Eng and NUS Centre for Governance and Sustainability director Lawrence Loh on the panel organised by the Singapore Institute of Directors. PHOTO: SINGAPORE INSTITUTE OF DIRECTORS Professor Lawrence Loh, director of the Centre for Governance and Sustainability at the National University of Singapore, said that as a last resort, if board directors cannot have their dissenting vote on record, they can even consider becoming internal whistle-blowers. Ultimately, Mr Chew said directors all have experiences of feeling compelled or pressured to do something that others may feel strongly about. 'We struggle with it. It's a practical reality,' he said. But all one has to do, he added, is ask: 'Am I doing the right thing for the company?' Sue-Ann Tan is a business correspondent at The Straits Times covering capital markets and sustainable finance. Join ST's Telegram channel and get the latest breaking news delivered to you.
South China Morning Post
17-06-2025
- Business
- South China Morning Post
Hong Kong considers punishing underperforming senior officials with pay freezes
Authorities are considering introducing a new accountability system that will punish underperforming senior officials with pay freezes, Hong Kong's leader has said, stressing that it aims to strengthen leadership and improve policy implementation. Chief Executive John Lee Ka-chiu said on Tuesday that the government was exploring such a system, which would complement the existing accountability framework for principal officials that has been in place for 23 years. 'I hope to enhance the leadership and roles of senior officials in managing recurring or broad issues within their own departments,' he said before his weekly meeting with the Executive Council , the city's key decision-making body. 'The ultimate goal is to ensure policies are implemented effectively and benefit the public by establishing a result-oriented team, be it civil servants executing the policies, senior officials in leadership roles, or our governing team.' Lee revealed in a recent media interview that under the proposed system, senior officials would undergo appraisals annually, with those underperforming facing consequences such as pay freezes. He also stressed that if senior officials exercised effective leadership in daily operations, recurring problems would be prevented and serious issues would not arise. Lee said the city secured second position globally for government efficiency in the latest world competitiveness ranking by IMD Business School, noting that the new system could further strengthen governance.
CNA
17-06-2025
- Business
- CNA
Globalisation is being rewired for a more complex world: IMD
IMD Business School President David Bach shares his insight on how businesses can navigate a more fractured and politically charged landscape. He remains optimistic that Asian companies can thrive by adapting to an evolving global order.
