*** UPDATE *** Tariff-ied Yet? Here’s What Global Companies Can Do About the New Tariff Policies.

 

The tariff landscape continues to evolve rapidly since our last update in April. Here’s what’s changed—and what it could mean for your business:

• US-China Tariff De-escalation: On May 12, the U.S. and China announced a significant step back from their trade war. A mutual agreement has reduced tariffs imposed since April 2 by 115% on both sides, restoring a 10% base rate. China has also agreed to eliminate specific non-tariff countermeasures, and a 90-day bilateral trade dialogue is now underway.

• EU in the Hot Seat: As tensions ease with China, the European Union has become the new focus of U.S. trade policy. The 25% levy on EU steel and aluminum remains, while an additional 50% tariff on a broad range of EU goods—from luxury cars to consumer products—could come into effect July 9 if no deal is reached.

• Fast-Tracked Transatlantic Talks: In response, the EU has accelerated negotiations with the U.S., with Trade Commissioner Maroš Šefčovič leading the charge. Discussions are centered on critical sectors, including automobiles, semiconductors, aluminum, and pharmaceuticals, in an effort to avert new tariffs.

• India’s Mixed Message: India is seeking tariff relief, but simultaneously holding firm on high duties for agricultural imports such as dairy and food grains—indicating a more protectionist stance in select sectors.

• Apple Under Pressure: The Trump administration has taken a pointed stance toward Apple, warning of a 25% tariff on iPhones if the company does not move production to the U.S., highlighting growing pressure on high-profile tech firms to reshore manufacturing.

Zinyah Robinson, Law Clerk, BridgehouseLaw LLP, Charlotte, NC

image: iStock

Britain Begins the Process of Reopening

 

Britain Begins the Process of Reopening

Last week, Britain started to slowly reopen after one of the longest and most strict lockdowns in the world. Britain has been under three nationwide lockdowns since the start of the pandemic, and they hope for this to be the last. When the country began to open last week, thousands of retail stores, pubs, restaurants, and more reopened for the first time in months. The British government has said that they are aiming to fully reopen by June 21st.

British citizens have been under strict lockdowns for the longest amount of time compared to any other country in the world since the start of the pandemic. When the lockdown restrictions finally eased on Monday, April 12th, British citizens rushed out of their homes to celebrate by shopping and grabbing a meal or drink with friends (outdoors). This surge of eager spenders is great for local businesses.

How Does This Affect the Economy?

Deutsche Bank, the German Investment Bank, has stated that since the country has begun to reopen, the economy has been off to a “roaring start”. These predictions and data suggest a strong consumer demand which has been pent up for the past three months. Many consumers’ incomes were protected by government furloughs.

It is still not certain if Britain is on a straight path towards reopening. Many things could happen before this is all over, including another lockdown, similar to what Ontario, Canada is facing. The process of Britain fully reopening is a long one, but it still feels like the beginning of the end for many.

This will likely open the doors to more opportunities for international business deals between the UK and the rest of the world. Follow along with our blog for other articles on international business, law, and more!

The False Perception of a Company's Profitability

 

The Profit of a Company: Expectations vs Reality

What do you think is the average profit of a company? A management advisory company conducted a survey by asking people in the streets this same question. The people surveyed believe that the profit of a company is 22.8%. In other words, if your company makes $100 in revenue, taking away all of the expenses, your profit is $22.8.

In Germany, the reality is 3.4%. The global standard is approximately in the 7% area, so a company that has a 10% profit is rare, almost. Why is there a misconception? Could it be culturally? People just think that businesses must be profitable because why would someone be an entrepreneur otherwise? Or is it that the lack of information plays a role? Or could it be that the PR of companies speak a different language? Companies are very happy about their sales. Volkswagen vs Toyota, who is able to sell more cars? That’s a big discussion, but profit seems to be secondary. If you are the largest selling company, then you must be doing good.

Profit For German Companies

Why is profit in Germany so bad compared to other countries? 3.4% compared to something in the neighborhood of 7% globally. I believe a lot of it has to do with the German desire to provide top quality. The made in Germany sticker has a price, not only to you as a customer who pays more, but also to the company who loses some of their profit to ensure the quality. So, it is no surprise that Toyota’s revenue is double the amount of Volkswagen’s revenue. What does this mean for you? If you look for quality, buy quality, but if you look for buying shares, but a different one, probably one with higher profitability.

This video was transcribed from a Morning Musing from our YouTube Channel. To see the video, click here.

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