Latest news with #tradewar
Yahoo
an hour ago
- Business
- Yahoo
UK chipmaker considers breakup as it is rocked by Trump's tariff assault
One of Britain's leading microchip businesses is racing to complete a $1bn (£740m) sale as it grapples with the impact of Donald Trump's trade war. Imagination Technologies, which designs graphics processor technology for customers such as Apple, has held sale talks with two US rivals. Bosses of the Chinese-owned company are also considering a potential break-up to get a deal over the line, which could include selling its valuable patent portfolio. It is understood that executives have put a $1bn price tag on Imagination, with bankers from Lazard overseeing the process. In a memo to staff, Ray Bingham, Imagination's chairman, said 'the Galway Project', which refers to the sale talks, 'continues to progress well'. The memo added: 'The second-to-none creativity and expertise of our teams is an incredible asset to capture the unique opportunity created by the current AI revolution.' It comes after the president's trade war with China has rocked the tech industry, including at UK-based Imagination. Pressure has arisen after the US introduced increasingly stringent sanctions on China's chip industry, as Mr Trump seeks to limit China's access to Western technology. This stems from fears that it could be used by Beijing's military. Imagination, which is based in Hertfordshire, was taken private by US-based investor Canyon Bridge in a £550m deal in 2017. However, the business was later engulfed in a political storm after Canyon Bridge's Chinese backers attempted an unsuccessful boardroom coup. This led to the departure of the then-chief executive, Ron Black, who blew the whistle on the Chinese effort to take control of the business. Last year, an employment tribunal ruled Imagination had unfairly sacked Mr Black, who had sued the company for £200m. Damages are yet to be determined. Canyon Bridge has been considering its options for Imagination for several years, at one stage exploring a Chinese float and then a US listing. According to its latest accounts for the year ending December 2023, Imagination's revenues increased by 3.6pc to £124.6m, although its profits plunged by 78pc to £2.6m. At the time, the company warned that 'US and UK export controls' on its Chinese customers had 'stymied top-line revenue growth'. As for its management, staff were told earlier this month that Simon Beresford-Wylie, the current chief executive, is preparing to leave the business. Didier Lamouche, a board member, will lead the business in the interim while it appoints a successor. A spokesman for Imagination declined to comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
an hour ago
- Business
- Bloomberg
US Banks That Fueled Ireland's Finance Rebound Face Tariff Angst
When the US launched sweeping tariffs against trade partners in April, BlackRock Inc. Chief Executive Officer Larry Fink found himself in Ireland, one of the countries with most to lose if US multinationals were forced to curtail their operations overseas. Fink, whose company was in the running for a major contract with the Irish government at the time, toed a careful line, claiming to 'understand the logic' of Donald Trump's move while not agreeing with it, and insisting there 'does not need to be a true trade war.'
CBC
an hour ago
- Business
- CBC
As the U.S. trade war drags, calls grow for Canada to cautiously improve ties with China
As Prime Minister Mark Carney's government works to reshape its economic policies amid an unpredictable administration south of the border, Canadian businesses that trade with China say Ottawa needs to find ways to expand exports there — and fast. While the Canada-China relationship has been stymied in recent years, there are signals of relations improving. Following the first ministers' meeting in Saskatoon earlier this month, Carney said Canada and China were meeting at the ministerial level to address a tit-for-tat trade war between the two countries that saw Canada place 100 per cent tariffs on Chinese-made electric vehicles and China retaliate with similar levies on canola meal and seed, pork and seafood. Carney called negotiations with China "a top priority for us," as the federal government seeks to have the counter-tariffs on the agricultural products removed, and the two countries recently agreed to regularize communications. The potential thaw comes as U.S. President Donald Trump has imposed shifting tariffs on much of the world, including 50 per cent on Canadian steel and aluminum imports, and 25 per cent on many cars and auto parts. That's left businesses and analysts calling for Ottawa to fortify Canada's economy, including by overcoming political and infrastructure challenges to increase trade with China. In fact, there are signs it's already happening, for various reasons. According to Statistics Canada, as Canadian exports to the U.S. were down 15.7 per cent in April, exports to countries other than the U.S. increased 2.9 per cent that same month, led by exports to China, the U.K., Algeria and Brazil. Notably, oil exports to China have risen since the Trans Mountain Pipeline started operating in May 2024. In the last few months, it has emerged as the top customer for Canadian crude. Potential for growth According to the Conference Board of Canada, Canada's trade with the world's second-largest economy is currently hampered by political tensions that, if overcome, will continue to be "a key export market." "There's clearly demand. And Chinese demand is willing to step in and fill that gap that's been left by the closing of access to American markets," said Conference Board senior economist Liam Daly. Even though China is Canada's second-biggest trading partner, there's room for growth; Canada exported $30 billion worth of products to China in 2024 — a fraction of the whopping $500 billion shipped to the U.S., said Daly. Canada is also running an increasing trade deficit with China — $57 billion in 2024. If and when the tariffs and counter-tariffs are removed, the growth in exports could come in the form of raw goods, like timber, wheat, lentils and energy, according to Josipa Petrunic, president and CEO of the Canadian Urban Transit Research & Innovation Consortium (CUTRIC), an industry organization that is staunch advocate of Canada removing Canada's EV tariffs on China. "That's the low-hanging fruit," she said, since there are long-standing concerns over intellectual property infringement. "There's not a lot of IP in a shrimp, right?" WATCH | U.S., China agree to 90-day tariff pause. What it means for some Canadian businesses: What the U.S.-China tariff pause means for some Canadian business owners | Hanomansing Tonight 1 month ago Duration 5:09 Shipping to China Some businesses are also calling for improved relations with China, hoping for a more "predictable and stable" environment, says Bijan Ahmadi, executive director of the Canada China Business Council, a non-profit that acts as a voice for Canadian businesses in China. "China represents significant opportunities for Canadian companies," he said. That's true for Laneway Distillers, a small gin and vodka company based in Toronto, which imports its custom bottles from China and started exporting its alcohol to sell on Chinese e-commerce platforms in 2023. "We find doing business in China easier than doing business here in Ontario," said co-founder and CEO Jessica Chester. "I'm always blown away by the efficiency of their systems." On the other hand, Chester says she finds navigating Ontario's red tape "very complex," while interprovincial trade barriers in Canada prevent her from selling to other provinces. While Chester is hoping the provinces will work to quickly lift those barriers, which both Ottawa and the premiers have vowed to do, she is buoyed by what appears to be Canada's willingness to bolster trade relations with China, despite difficulties she's encountered. "The infrastructure has been neglected for too long," she said, noting that her current shipment of gin to China has been delayed by a month, stuck on a rail line somewhere between Toronto and Vancouver. "The reality is I run out of stock," she said. "I've spent a huge amount of time building up my clientele, my brand, and to run out of stock on an online store is devastating." Subsidization and consumption China is also known to artificially subsidize its industries, like steel, which creates unfair competition. Tariffs are theoretically supposed to address this, but some businesses say it simply reroutes shipments through other countries. And despite China being a massive market, some analysts say the country is suffering from low consumption and growth. "How much they can absorb is a bit of an issue," said Jan Ian Chong, an associate professor of political science at the National University of Singapore. "Chinese consumers aren't buying very much. So, in theory, they look like an attractive market, but in practice, that could be a little complicated." Political hurdles There are also political tensions, partly due to Canada's allyship with the U.S. Given the three-year imprisonment of Michael Spavor and Michael Kovrig — widely considered a retaliatory move after the 2018 arrest of Chinese Huawei executive Meng Wangzhou in Vancouver at Washington's request — Petrunic says any talks with China need to have this history baked in. "That's the elephant in the room," she said. "We're concerned Canadians are taken as prisoners. That needs to be front and centre in any dialogue with China." WATCH | Ottawa and Washington working toward trade and security deal: Ottawa, Washington exchange draft on potential trade deal: sources 8 days ago Duration 2:47 Growing the relationship also means Canada needs to protect itself in other ways, said Nicolas Lamp, an associate professor in the faculty of law at Queen's University in Kingston, Ont. "We want to make sure we don't open ourselves up to espionage or blackmail or sabotage," he said. Expanding Canada's trade with China also risks drawing the ire of Trump, considering his rhetoric against the country, and how he's stacked his cabinet with China critics and recently raised tariffs as high as 145 per cent on Chinese imports. (Though most are currently at 30 per cent, following talks last month behind the two sides.) Because Canada likely can't entirely ignore its largest trading partner as a result of its deep economic ties and geographic proximity, there's a fine line to walk. "I think there's a path forward … to increase trade with China, while not falling afoul of what is an increasingly punitive administration in Washington," said Daly, with the Conference Board of Canada.
Telegraph
2 hours ago
- Business
- Telegraph
UK chipmaker considers breakup as it is rocked by Trump's tariff assault
One of Britain's leading microchip businesses is racing to complete a $1bn (£740m) sale as it grapples with the impact of Donald Trump's trade war. Imagination Technologies, which designs graphics processor technology for customers such as Apple, has held sale talks with two US rivals. Bosses of the Chinese-owned company are also considering a potential break-up to get a deal over the line, which could include selling its valuable patent portfolio. It is understood that executives have put a $1bn price tag on Imagination, with bankers from Lazard overseeing the process. In a memo to staff, Ray Bingham, Imagination's chairman, said 'the Galway Project', which refers to the sale talks, 'continues to progress well'. The memo added: 'The second-to-none creativity and expertise of our teams is an incredible asset to capture the unique opportunity created by the current AI revolution.' It comes after the president's trade war with China has rocked the tech industry, including at UK-based Imagination. Pressure has arisen after the US introduced increasingly stringent sanctions on China's chip industry, as Mr Trump seeks to limit China's access to Western technology. This stems from fears that it could be used by Beijing's military. Imagination, which is based in Hertfordshire, was taken private by US-based investor Canyon Bridge in a £550m deal in 2017. However, the business was later engulfed in a political storm after Canyon Bridge's Chinese backers attempted an unsuccessful boardroom coup. This led to the departure of the then-chief executive, Ron Black, who blew the whistle on the Chinese effort to take control of the business. Last year, an employment tribunal ruled Imagination had unfairly sacked Mr Black, who had sued the company for £200m. Damages are yet to be determined. Canyon Bridge has been considering its options for Imagination for several years, at one stage exploring a Chinese float and then a US listing. According to its latest accounts for the year ending December 2023, Imagination's revenues increased by 3.6pc to £124.6m, although its profits plunged by 78pc to £2.6m. At the time, the company warned that 'US and UK export controls' on its Chinese customers had 'stymied top-line revenue growth'. As for its management, staff were told earlier this month that Simon Beresford-Wylie, the current chief executive, is preparing to leave the business. Didier Lamouche, a board member, will lead the business in the interim while it appoints a successor.
Bloomberg
5 hours ago
- Business
- Bloomberg
China's Rare Earth Magnet Exports Slump in May, Especially to US
Chinese exports of rare earth magnets slumped further in May, with shipments to the US showing an especially steep drop due to the trade war with Washington. Rare earth minerals, and the products that use the elements, have been at the center of the dispute since early April, when China imposed export controls in retaliation for punitive tariffs levied on Chinese goods. The two countries have since sought to reset relations, culminating in a meeting in London in early June, which prompted US President Donald Trump to declare that issues around rare earths had been resolved.
