Global Trends and Politics
BOM Threatened By Trump Tariffs
The Hollywood sign in Los Angeles on Jan. 22, 2024
Mario Tama | Getty Images News | Getty Images
LOS ANGELES — President Donald Trump picked a fight with Hollywood’s best friend.
Hollywood North Under Threat
Known as Hollywood North, Canada has been a bustling production hub for American film and television series for decades. In addition to offering an enticing tax credit for stateside studios, the country has developed a top-notch workforce of industry talent in front of and behind the camera.
Trump’s proposed import tariffs on Canadian goods could threaten that relationship, Hollywood insiders told CNBC.
Trade War Fears
Some fear that a trade war with Canada could cause the U.S.’ northern neighbor to retaliate in ways that would hurt film production, potentially rescinding those sought-after tax credits or closing stages to U.S. studios altogether. Others believe the relationship between Hollywood and Canada is strong enough, and lucrative enough, to withstand Trump’s levies.
Retaliatory Measures
On Saturday, Trump announced 25% tariffs on most goods from Mexico and Canada, as well as a 10% duty on goods from China. Trudeau immediately slapped retaliatory tariffs on American goods, saying, "Like the American tariffs, our response will also be far-reaching."
Paused Tariffs
On Monday, both Canada and Mexico announced the tariffs would be paused for 30 days after the countries agreed to greater border controls.
Production Budget Pressures
Should the levies be revived in a month, Trump’s tariffs could put pressure on production budgets, according to industry insiders, particularly for films and television shows that import certain textiles for costuming or unique construction materials such as specialty glass from outside the U.S.
Locally Sourced Supplies
However, most studios source materials locally to their productions. It is rare for a Los Angeles-based set to bring in lumber from Canada, for example. Films and TV shows filmed in other countries will predominantly use supplies in those locations or ship them from the U.S. This includes food used in catering, which could see a slight uptick in price because of tariffs, but likely will not alter budgets too much.
Rented Equipment
Additionally, many of the line items on the typical production budget are rented. Lighting, cameras and other production equipment come from studio warehouses and are leased for the duration of the shoot, isolating production costs from higher levies to an extent.
Squeezing Consumers
Still, concerns are growing that higher tariffs across sectors could affect moviegoers’ wallets and in turn threaten box office sales.
Box Office Impact
Companies importing goods into the U.S. from these affected countries are expected to pass additional costs onto consumers, raising the cost of hundreds of common household goods. Film industry members who spoke to CNBC said they were worried that if customers start to tighten their purse strings, trips to the theater could be among the expenses that get cut.
Hollywood’s Rebound
Hollywood has only just begun to rebound after Covid-19 pandemic production shutdowns were exacerbated by dual labor strikes. Now, even if studios are able to improve the cadence of theatrical releases, there is concern that moviegoers will not have the discretionary income to see new films and buy popcorn.
Conclusion
Ultimately, industry experts told CNBC that Hollywood will navigate whatever consequences come from Trump’s tariffs. However, it likely will have a harder time dealing with any pullback in consumer spending.
FAQs
Q: What is Hollywood North?
A: Hollywood North is the nickname for Canada, which has been a popular filming location for American film and television productions.
Q: Why are Canadian goods under threat?
A: President Donald Trump’s proposed import tariffs on Canadian goods could harm the relationship between Hollywood and Canada, potentially leading to a trade war.
Q: How could Trump’s tariffs affect production budgets?
A: Tariffs could increase costs for films and television shows that import certain textiles or construction materials, potentially affecting production budgets.
Q: How might consumers be affected?
A: Higher tariffs across sectors could lead to increased prices for household goods, potentially reducing consumer spending on discretionary items like movie tickets.
Global Trends and Politics
The Role of HR in Supporting Employee Activism: A Guide
The modern workplace is witnessing a significant shift, with employees become increasingly vocal about their rights, values, and beliefs. Employee activism, a term that refers to the collective action taken by employees to bring about change within an organization or industry, is on the rise. As a result, Human Resources (HR) professionals are facing new challenges and opportunities to support their employees’ activism while ensuring the organization’s success. In this guide, we will explore the role of HR in supporting employee activism, the benefits, and the challenges that come with it.
What is Employee Activism?
Employee activism is not a new concept, but its scope and intensity have increased significantly in recent years. It can manifest in various forms, such as:
- Unionization: Employees coming together to form a union to negotiate better working conditions, wages, and benefits
- Social and environmental activism: Employees using their collective voice to advocate for social and environmental causes
- Internal activism: Employees pushing for changes within the organization, such as better working hours, flexible work arrangements, or improved diversity and inclusion
The Role of HR in Supporting Employee Activism
HR professionals play a crucial role in supporting employee activism by:
Providing a Supportive Environment
- Encouraging open communication and transparency within the organization
- Fostering a culture of inclusivity and respect for diverse perspectives
- Providing resources and training to support employee engagement and activism
Managing Expectations
- Setting clear expectations for employee activism, ensuring that it aligns with the organization’s goals and values
- Establishing procedures for reporting and addressing concerns or issues raised by employees
- Ensuring that employee activism does not interfere with the organization’s operations or compromise its reputation
Facilitating Collaboration and Negotiation
- Facilitating communication and collaboration between employees, management, and other stakeholders
- Assisting in negotiations and conflict resolution
- Providing guidance on labor laws and regulations related to employee activism
Monitoring and Evaluating
- Monitoring the impact of employee activism on the organization
- Evaluating the effectiveness of employee activism initiatives
- Identifying areas for improvement and adjusting strategies accordingly
Benefits of Supporting Employee Activism
Supporting employee activism can bring numerous benefits to the organization, including:
- Improved employee engagement and morale
- Increased creativity and innovation
- Enhanced reputation and brand image
- Better representation and inclusion of diverse perspectives
Challenges of Supporting Employee Activism
However, supporting employee activism also comes with challenges, including:
- Balancing the rights of employees with the needs of the organization
- Managing conflicting opinions and perspectives
- Ensuring that employee activism does not compromise the organization’s operations or reputation
- Navigating complex labor laws and regulations
Real-Life Examples and Success Stories
- The #MeToo movement, which led to a global conversation about workplace harassment and accountability
- The Black Lives Matter movement, which highlighted systemic racism and police brutality
- The environmental activism of employees at companies like Amazon and Google, which led to changes in company policies and practices
Conclusion
In conclusion, the role of HR in supporting employee activism is critical to creating a positive and productive work environment. By providing a supportive environment, managing expectations, facilitating collaboration and negotiation, and monitoring and evaluating employee activism, HR professionals can help organizations reap the benefits of employee activism while minimizing its challenges. As the world continues to evolve, it is essential for HR professionals to stay ahead of the curve and adapt to the changing landscape of employee activism.
FAQs
Q: What is the primary goal of HR in supporting employee activism?
A: The primary goal of HR is to support employees in their activism while ensuring that it aligns with the organization’s goals and values.
Q: How can HR professionals facilitate collaboration and negotiation between employees and management?
A: HR professionals can facilitate communication and collaboration by providing a neutral and confidential forum for discussion, establishing clear expectations, and offering guidance on labor laws and regulations.
Q: What are some common challenges that HR professionals face in supporting employee activism?
A: Common challenges include balancing the rights of employees with the needs of the organization, managing conflicting opinions and perspectives, and ensuring that employee activism does not compromise the organization’s operations or reputation.
Q: How can HR professionals evaluate the effectiveness of employee activism initiatives?
A: HR professionals can evaluate the effectiveness of employee activism initiatives by monitoring the impact on employee engagement and morale, identifying areas for improvement, and adjusting strategies accordingly.
Global Trends and Politics
Trump tariffs could raise drug costs, worsen shortages
President Trump’s Tariffs Could Worsen US Drug Shortages, Raise Healthcare Costs
President Donald Trump’s steep tariffs on Canada, Mexico, and China could worsen existing drug shortages in the US, raise healthcare costs for patients, and threaten cash-strapped generic drugmakers, some drug trade groups warn.
Impact on Generic Drugs
The US relies heavily on other countries for pharmaceutical products, especially for generic drugs, which make up 90% of Americans’ prescriptions. Those medications are often manufactured overseas at lower costs. The tariffs could increase already problematic drug shortages by forcing generic manufacturers out of the market due to low profit margins.
Warnings from Drug Trade Groups
John Murphy, CEO of the Association for Accessible Medicines, which represents generic pharmaceutical companies, urged the Trump administration to exempt generic products from tariffs. He stated that generic manufacturers simply cannot absorb new costs and that the overall value of all generic sales in the US has decreased by $6.4 billion in five years despite growth in volume and new generic drug launches.
Healthcare Distribution Alliance’s Concerns
The Healthcare Distribution Alliance, which represents 40 drug distributors, has also called for the Trump administration to reconsider including pharmaceutical products in tariffs. The group warned that tariffs will strain the pharmaceutical supply chain and could adversely affect American patients, whether that is through increased medical product costs or manufacturers leaving the market.
Estimated Impact
An estimate from The Budget Lab at Yale University said long-term prices of pharmaceutical products in the US will be 1.1% higher after shifts in the supply chain.
Impact on Medical Devices
The US also relies on overseas manufacturing for medical devices, with many key components and finished products being sourced from countries such as China, Mexico, and India. Tariffs on these countries could increase the costs of medical products and lead to shortages of critical medical technologies, higher prices for patients and payers, and less investment in research and development.
Conclusion
The tariffs imposed by President Trump could have far-reaching consequences for the pharmaceutical and medical device industries in the US. The increased costs and potential shortages of crucial medicines and medical technologies could lead to higher healthcare costs for patients and potentially worsen existing drug shortages.
Frequently Asked Questions
Q: What is the impact of tariffs on generic drugs?
A: The tariffs could increase already problematic drug shortages by forcing generic manufacturers out of the market due to low profit margins.
Q: How do tariffs affect the pharmaceutical supply chain?
A: Tariffs will strain the pharmaceutical supply chain and could adversely affect American patients, whether that is through increased medical product costs or manufacturers leaving the market.
Q: What is the estimated impact of tariffs on pharmaceutical prices?
A: Long-term prices of pharmaceutical products in the US will be 1.1% higher after shifts in the supply chain.
Q: How do tariffs affect medical devices?
A: Tariffs could increase the costs of medical products and lead to shortages of critical medical technologies, higher prices for patients and payers, and less investment in research and development.
Global Trends and Politics
Tariff Threat Already Raising Prices for U.S. Consumers
As President Donald Trump threatens to impose his first tranche of tariffs on the world Saturday, Chinese manufacturers are bracing for impact. Though Trump is proposing his biggest initial swing at Canada and Mexico with a proposed 25% tariff, the U.S. president still has China on his radar. After a report that the administration could delay at least some of the duties until March 1, the White House said Friday that Trump will follow through on plans to slap 10% tariffs on imports from China on Saturday. On the campaign trail, he threatened tariffs on Chinese-made goods of 60% or more.
Tariff threat already raising prices for U.S. consumers
Hoping to beat Trump’s tariffs, furniture seller Harry Li is doubling the number of products he ships to the U.S. and stockpiling them in warehouses there. He expects the strategy will force him to raise prices as much as 10% – no matter what Trump’s tariffs turn out to be. He sells four out of five of his tables and other large furnishings to American consumers.
“I have to ship them in advance and take on more risk,” he said at his Foshan factory. His company Tianyiled plans to keep the extra inventory in the U.S. until Trump’s tariff plan for China becomes clearer.
Chinese factories adopt coping strategies
In addition to stockpiling, Li is considering other ways to avoid the border taxes. “One thing we can do is to pick those products not on the tariff list and export them to the U.S. instead,” he said.
In the nearby industrial city of Guangzhou, water purifier maker Zheng Yu is scouring the globe to find a new production base to supply the U.S. outside of China. He plans to set up assembly lines in a third country, buying some equipment and components from China while hiring locally for certain jobs. Zheng’s company Tesran is considering Vietnam, Malaysia, and Mexico as manufacturing bases, but is leaning toward Dubai even though costs will be 30% higher than in China.
“The domestic market is too competitive. We have been wanting to jump out of it for some time,” he said. “Trump’s tariffs gave us the final push.”
Chinese factories have a breaking point – which could lead to less choice for U.S. shoppers
All the businesses CNBC spoke to had a breaking point at which it would no longer make sense to sell to the U.S. The tariff thresholds ranged from 20 to 60%, and depended on the industry and the size of a company’s margins.
Water purifier maker Zheng said another wild card is whether President Trump unleashes proposed universal tariffs that, in his case, would raise costs for Dubai. “Then the U.S. is out,” he said.
Across Guangzhou, Leng Rong, who makes skin care products, is worried he might have to stop exporting to the U.S. completely. His goods got hit with tariffs north of 20% during Trump’s first term and it caused big losses for his company, Keni.
With his thin margins, Leng is hoping he can pass the cost of any tariff to his customers. “In the past, we all felt the U.S. market was the greatest market that everyone wanted to sell to. But with all the uncertainties and unfriendly decisions, the U.S. is less attractive now,” Leng said at his Guangzhou factory. “It’s a real pity.”
Conclusion
The threat of tariffs is already having an impact on Chinese manufacturers, with many adopting coping strategies to mitigate the effects. From stockpiling products to setting up new production bases in other countries, exporters are bracing for impact. However, if Trump’s tariffs become a reality, it could lead to a reduction in choice for U.S. consumers.
FAQs
Q: What are the proposed tariffs on Chinese goods?
A: The proposed tariffs range from 10% to 60% depending on the product and industry.
Q: How are Chinese manufacturers coping with the threat of tariffs?
A: Many are stockpiling products, setting up new production bases in other countries, and scouting for new markets.
Q: Will this lead to higher prices for U.S. consumers?
A: Yes, many expect prices to rise, potentially by as much as 10%.
Q: Will Chinese manufacturers continue to export to the U.S. if tariffs are imposed?
A: Some may, but many have a breaking point at which it may no longer be profitable to sell to the U.S. market.
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