GM dodges tariffs with production shift to US from Mexico
GENERAL Motors plans to invest US$4 billion in its US plants over the next two years to boost output of some of its top-selling gas-powered vehicles as the company works to manage President Donald Trump's tariffs.
The move will expand finished vehicle manufacturing at factories in Michigan, Kansas and Tennessee, GM said on Tuesday in a statement. The automaker will be able to assemble more than two million vehicles a year in the US as a result of the investment.
GM is moving production of several top-selling models, including a profitable pickup truck line and the Chevrolet Equinox SUV, to factories in the US from Mexico. It will build its Chevy Silverado pickup at a plant outside Detroit that was slated to make slow-selling electric pickups.
The largest importer of vehicles into the US, GM is seeking to mitigate an estimated US$5 billion exposure to Trump's tariffs. The import taxes aim to boost US manufacturing by driving up costs to build vehicles overseas.
GM's shares were little changed in after-hours trading on Tuesday. BLOOMBERG
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Straits Times
an hour ago
- Straits Times
Thailand targets Cambodian scam centres as border dispute rages
Ms Paetongtarn said Bangkok will restrict border crossings to Cambodia across seven provinces, and halt exports of goods including fuel. PHOTO: REUTERS BANGKOK – Thailand announced a raft of security and trade measures to cripple transnational crime syndicates in Cambodia, as Prime Minister Paetongtarn Shinawatra seeks an upper hand in a simmering border dispute with its neighbour. Bangkok will restrict border crossings to Cambodia across seven provinces, and halt exports of goods including fuel that abet transnational criminal activities, Ms Paetongtarn told reporters on June 23 after chairing a meeting of officials and security agencies. Bangkok will coordinate its efforts with foreign governments and international organisations to dismantle the criminal hub that's estimated to generate more than 600 billion baht (S$23.53 billion) a year, she said. The crackdown comes in the wake of a political crisis triggered by Ms Paetongtarn's comments in a leaked phone call with former Cambodian leader Hun Sen, which caused a key party to quit her coalition, reducing its majority in Parliament. She has since vowed to deal more firmly with Cambodia in the border stand-off. The border row has escalated, with the two countries curbing trade and people's mobility in tit-for-tat moves since an exchange of gunfire between troops in May. Cambodia suspended imports of Thai fuel and gas from June 23 after the Thai army closed one of the border crossings. The measures targeting scam centres follow similar efforts earlier in 2025, when Thailand cut off electricity, internet access and fuel supplies to some areas in Myanmar suspected to house cyber scam operations. Thailand and Cambodia had also jointly dismantled a scam centre that housed hundreds of trafficked foreign workers in casino city Poipet. Across South-east Asia, the billion-dollar cyber scam operations have been expanding, particularly in Laos, Cambodia and Myanmar. They are often run by Chinese fugitives who fled their home nation in 2020 following a domestic crackdown. Earlier in 2025, thousands of workers were rescued from scam centres in Myanmar in a multinational crackdown that also included China. 'The criminal networks in Myanmar have resettled in Cambodia, so we need tighter measures to prevent Thais being scammed in the future,' Ms Paetongtarn said. As part of the crackdown, Thailand will ban foreign tourists from crossing over to Cambodia and curb air travel to Siem Reap for gambling purposes, Ms Paetongtarn said. Thai law enforcement agencies will ramp up inspection of so-called mule accounts and financial transactions of call centre gangs, and suspend all internet services and undersea internet gateways used by Cambodia's military and security agencies. Thailand will also impose sanctions on transnational criminals with money-laundering activities and seize or freeze their assets transferred abroad, according to Ms Paetongtarn. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
an hour ago
- Business Times
Global airlines halt Middle East flights as war disruptions reach Dubai
[DUBAI] Major global airlines extended flight cancellations to the Persian Gulf, disrupting air traffic to critical hubs such as Dubai after the US struck nuclear sites in Iran and Teheran vowed to retaliate. Singapore Airlines said it would suspend service to Dubai until Wednesday (Jun 25) night and warned more flights could be scrapped due to the fluidity of the situation. British Airways added cancellations to Dubai and Doha, while Air France-KLM reportedly will scrap flights to Dubai and Riyadh. The airlines' decisions highlight the potential for a widening of the war between Israel and Iran after US President Donald Trump joined the fight by attacking Iran's nuclear sites. The dramatic escalation risks retaliation, potentially disrupting economies that had previously been shielded from the fallout of regional hostilities. Dubai, home to Emirates, and Doha, the capital of Qatar and its namesake airline, are major travel hubs that handle much of the traffic within the Middle East and form a crossroads for long-haul travel between Asia, Europe and North America. They had avoided previous suspensions that were contained to countries surrounding Israel and the skies over nations where Iran's missiles pass. Prior to the US strikes on Sunday, Teheran threatened to hit US bases in the Persian Gulf should Washington get involved, and close down the Strait of Hormuz, a vital oil trade waterway it borders with the United Arab Emirates and Oman. Qatar hosts the largest US base in the region, while Bahrain is home to the US Navy's Fifth Fleet. 'A widening conflict around the Strait of Hormuz could threaten to disrupt global airline traffic, particularly if flight restrictions to key transfer hubs in Qatar and the UAE were to occur,' Bloomberg Intelligence analysts Eric Zhu and George Ferguson wrote in a note. Excluding local carriers, Indian airlines including IndiGo, Turkish Airlines and British Airways are among the most exposed, they wrote. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Shares of the major network carriers fell, including Air France-KLM, Deutsche Lufthansa and BA parent IAG in Europe. United Airlines Holdings and Delta Air Lines declined in premarket US trading. Singapore Airlines has halted flights to Dubai from the city-state since Sunday over security concerns. British Airways diverted a Dubai-bound flight to Zurich after it reached Saudi Arabia's airspace in the early hours of Sunday, according to data from Flightradar24. Another jet returned to Heathrow after going as far as Egypt. The London-based carrier earlier halted routes to Bahrain through the end of the month due to operational constraints and airspace restrictions. AFP and other outlets reported on the Air France suspensions. With no clear view on next steps, some companies began to take precautions. Japan's biggest banks are considering evacuating employees, with Mitsubishi UFJ Financial Group beginning to pull out the families of staff. Japan's biggest bank has also halted unnecessary travel in and out of the region. Asian airlines have also taken steps to safeguard passengers and crews. Japan Airlines plans to have flights between Tokyo's Haneda airport and Doha avoid airspace above the Persian Gulf and Gulf of Oman, adding about 20 minutes to journeys. Air India will progressively avoid the use of certain airspace over the Persian Gulf in the coming days. The actions follow President Donald Trump's decision to undertake the US' first direct military action against Iran after decades of hostility, pushing the Middle East into uncharted territory. The possibility of further disruption will depend on how forcefully Iran retaliates. Trump has threatened more attacks if Teheran doesn't capitulate. Even before the US strikes, several American and European airlines had paused flights to the United Arab Emirates and Qatar after Israel started bombarding Iran. The skies over large swaths of the Middle East have been restricted at several times during the past 20 months, making flying through Israel, Jordan, Lebanon, Syria, Iraq and Iran difficult. The closures have forced airlines to cancel flights on profitable routes, spend more on jet fuel and pass through countries they usually avoid like Afghanistan, as they avoid dangerous skies. It has also meant hundreds of disrupted flights and thousands of stranded passengers. Israel has started to allow outbound flights after halting them since its launched latest attacks on Iran starting Jun 13. Tel Aviv is expected to let about 1,000 passengers per day leave the country from Ben Gurion Airport and Haifa. The flights, which have a strict limit of 50 passengers per plane to prevent too many people from congregating and presenting a major target at the airport. The government will prioritise foreigners, diplomats, and nationals needing to evacuate for life-saving or humanitarian reasons. The UK is organising a chartered flight for British nationals who want to leave Israel, while Germany sent a military transport plane to extract citizens and France said it also plans repatriation flights. BLOOMBERG
Business Times
2 hours ago
- Business Times
Middle East conflict could drive up Singapore's inflation, warn economists, after core inflation dips in May
[SINGAPORE] Escalating tensions in the Middle East could spark a new wave of inflationary pressures, warned private sector economists, even as Singapore's authorities kept to their full-year inflation forecast. The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) on Monday (Jun 23) left their 2025 core inflation forecast of 0.5 to 1.5 per cent unchanged, after May's inflation readings dipped from the previous month. According to data from Department of Statistics, Singapore's core and headline inflation edged down to 0.6 per cent and 0.8 per cent respectively, in line with economists' expectations. On a month-on-month basis, core inflation was flat while headline inflation rose 0.7 per cent. Still, private-sector economists warned that the escalating conflict between Israel and Iran could bring a spike in oil and energy prices, and consequently put upward pressure on Singapore's inflation. This prompted UOB to raise its full-year core inflation forecast to 0.8 per cent, from 0.7 per cent, in 2025, and 1.6 per cent, from 1.3 per cent, in 2026, under its base case of a 'weaker pass through from higher oil prices' and a gradual de-escalation in geopolitical tensions. In the bank's worst case, core inflation could surge to 2.6 per cent in the first quarter of 2026, while moderating to 2.1 per cent in the second half of next year. Overall, core inflation could average 1.2 per cent and 2.3 per cent, respectively, in 2025 and 2026. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Its associate economist, Jester Koh, estimates that about 7.7 per cent of the overall consumer price index (CPI) basket could be directly impacted by higher oil prices, including components such as electricity, gas, petrol, point-to-point transport services, airfares, transport services of goods, as well as bus and train fares. 'Additionally, the spillover effects of higher utility, transportation and input costs on both goods and services inflation could be significant,' he added. According to UOB's estimates, year-on-year core inflation could rise by five to six basis points for every US$1 per oil barrel increase in Brent crude oil prices. Further, any supply-led spike in oil prices could filter through to Singapore's inflation 'largely within three to four months', said Koh in a research note. Meanwhile, RHB maintained its core inflation forecast of 1.1 per cent – but at the higher end of the official forecast range, the forecast factors a potential spike in oil prices driving higher global inflation. 'The recent US involvement in the Iran-Israel conflict, including strikes on Iranian territory, has driven oil prices higher over the weekend, extending a three-week rally,' said economists Barnabas Gan and Laalitha Raveenthar. 'Imported goods and services may become more expensive if global supply chains are disrupted or rerouted due to regional conflict.' Monetary policy settings MAS and MTI, however, said that the impact of the trade conflicts and higher global energy prices on Singapore is likely to be offset by the disinflationary drags exerted by weaker global demand. 'While crude oil prices have risen in recent weeks, they are for now still close to the average in 2024,' they said. Singapore's imported inflation thus should remain moderate. Agreeing, Maybank economists Chua Hak Bin and Brian Lee said imported prices should remain contained due to weak global demand and contained food commodity prices, amid abundant supply conditions. An appreciating Singapore nominal effective exchange rate (S$NEER) will also put a lid on imported costs, the economists added. Against this uncertain outlook, economists largely expect MAS to maintain its current policy stance in the upcoming July monetary policy meeting. Said Maybank's Dr Chua and Lee: 'Inflation remains contained, while growth is slowing to a more sustainable pace.' RHB's Gan and Raveenthar, however, believe rising volatility could prompt MAS to widen the S$NEER policy band, while maintaining the current appreciation slope. They also do not rule out the possibility of MAS flattening the slope of the policy band in future reviews, should trade tensions escalate again or if global demand slows more sharply than anticipated. 'While the headline and core inflation remain contained, the balance of risk has tilted towards the need to support growth, given rising external uncertainties,' said Gan and Raveenthar. The outlier was UOB's Koh, who expects MAS to flatten the S$NEER slope in the upcoming review. 'We assess that the economic outlook still warrants a further easing move,' said Koh, adding, however, that MAS may choose to delay monetary policy easing to the subsequent October policy meeting instead. 'Greater clarity could emerge with regard to tariff policy, the Middle East conflict and economic data (between July and the subsequent policy meeting in October), conferring the advantage for MAS to adjust monetary policy possibly with more comprehensive information.' Key CPI categories In May, most consumer price index (CPI) categories saw easing prices, except for accommodation and services inflation, which was unchanged from the month before. Food inflation eased to 1.1 per cent, from 1.4 per cent previously, as the prices of non-cooked food rose at a slower pace. Meanwhile, electricity and gas inflation fell further to 3.7 per cent, from a fall of 3.5 per cent, due to a larger decline in electricity prices. Retail and other goods prices continued to fall, but at a slower pace of 1 per cent, compared to a decline of 1.2 per cent previously, due to increases in the prices of household appliances, which offset a smaller decline in the cost of personal effects. Private transport inflation rose at a slower pace of 1.1 per cent, from 1.3 per cent previously, on the back of a smaller increase in car prices. Meanwhile, both services and accommodation inflation were unchanged from the previous month, at 1.1 per cent, respectively.
