Business

On a recent Thursday afternoon, the Haikou International Duty Free City, a sprawling mega-mall on China’s southern island province of Hainan, is worryingly empty. A few families meander through the cavernous building. Without customers to attend to, sales attendants chat to pass the time. Other than your correspondent, a burger-and-shake joint was completely devoid of patrons. More

Canadian nationalism is very unlikely to get out of hand. But when even the politest people on Earth are wrapping themselves in the flag, you know that national pride is on the march. Donald Trump’s talk of making America’s northern neighbour into the 51st state has prompted Canadians to buy maple-leaf flags, cancel southbound travel plans and boo the American anthem at sporting events. It’s not exactly Nuremberg, but it is striking. More

WHO IS BETTER at the technology of the future: America or China? Speculation is at fever pitch. The world’s most famous artificial-intelligence company, OpenAI, is American. Models produced by DeepSeek, a Chinese competitor, are almost as good—and cheaper. More

Advertisers are seeking more flexible terms as they try to parse how President Donald Trump’s new tariffs will affect their businesses.
Companies often pull back on advertising and marketing spending during periods of economic uncertainty.
The tariffs on imported goods into the U.S. come weeks before media companies plan to court advertisers during their annual Upfront presentations.

Big brands that have in some cases sat out for years the TV advertising frenzy around the biggest US sporting event — the Super Bowl — are returning Sunday and spending big amid record ad prices. It’s been a bumpy couple years marked by pandemic-era restraint and political polarization, but the American football championship offers an increasingly unequalled viewership too big to pass up.
Olivier Douliery | AFP | Getty Images

Brands and advertisers are seeking flexible terms as they face uncertainty about how President Donald Trump’s new tariffs will affect their businesses.
The push for more lenient agreements, in which companies could pivot budgets quickly or shift their focus to different types of marketing as they react to the duties, has been the focus of conversations between media companies and advertisers in recent weeks, according to people close to the discussions.

President Donald Trump announced he would put minimum 10% tariffs on all imports into the U.S., with far steeper duties on dozens of countries including China and Vietnam. The scarcity of specifics in recent weeks, and sometimes contrasting messages coming from the White House, have fueled conversations about flexibility between chief marketing officers and media executives, the people said.
“In this period of uncertainty, we’re seeing a significant shift toward more flexible, performance-based advertising models that allow brands to adjust spending quickly if conditions change,” said Jonathan Gudai, CEO of Adomni, an artificial intelligence-powered programmatic video-everywhere advertising platform. Buying ads programmatically, or through digital platforms, has taken up an increasingly large part of ad spending, and using AI tools are now often part of the process.
Unsteadiness in the economy often mean companies pull back on spending for advertising and marketing. The potential hit to the ad market underscores the ripple effect of tariffs on companies that won’t directly contend with heightened costs on products.
Tariffs aren’t the only factor causing advertisers to rethink their budgets, said Kate Scott-Dawkins, global president of business intelligence of GroupM, WPP’s media investment group.
“We were pretty bullish in our December forecast on [ad spending] growth for the U.S. I think we’ll probably end up curbing that in the June forecast, based on the confluence of impacts,” said Scott-Dawkins. “From the rising inflation plus layoffs and unemployment plus the impact of tariffs. I think it’ll be all those things together that lead to a reduction in our expectations for the year.”

GroupM forecast spending in the U.S. ad market to grow 7% in 2025, after totaling $379 billion in ad revenue in 2024, excluding political advertising, according to a recent report.
For media companies, the uncertainty also comes soon after they contended with tightened ad budgets during the height of the pandemic.
In some regards, advertising has stabilized for many media companies since the pandemic — especially for streaming platforms and those with live sports rights. But traditional TV networks still face lower advertising revenue as consumers shift away from the standard bundle of cable channels, and digital platforms and streaming gobble up a larger share of ad budgets.
Some advertising categories such as autos haven’t rebounded, however, and companies are unsure what tariffs will mean for spending, the people said. Conversations with chief marketing officers at automakers have been frequent, they added. Trump has announced 25% tariffs on cars and some auto parts not made in the U.S.
The tariffs also come weeks before Upfront presentations, when media companies make their annual pitch to advertisers.
“Everything I hear about Upfronts and the state of overall trading in the ad world is that it’s cautious,” said Jonathan Miller, CEO of Integrated Media, which specializes in digital media investments. “There’s much more demands for flexibility, and while it’s not recessionary, there’s a slight holding back…meaning a couple of percentage points of overall growth. Enough that is felt.”
Gudai of Adomni added that traditional TV will be one of the areas most vulnerable to ad budget cuts, but brands will also have to broaden their focus when it comes to competing for customers who could face higher prices on goods.
“Tariffs potentially create a dual impact — increased costs that may squeeze advertising budgets, but also greater need for targeted advertising as brands compete on factors beyond price,” Gudai said.
While media executives are open to offering flexibility, they’ve also been reminding brands that advertising during tough economic times can build brand awareness and help businesses long term, the people said.
Some brands are better served not cutting back on ad spending, too, especially if they don’t have brick-and-mortar stores or ways outside of marketing to get in front of potential customers. Scott-Dawkins said for some companies it’s still worth spending on TV ad spots since it’s still considered the most effective way to reach consumers.
“When every dollar is under scrutiny, brands have to do more than just sell—they have to connect. Purpose-driven marketing isn’t a ‘nice to have’ anymore; it’s how brands earn trust and build lasting relationships,” said Andre Banks, founder and CEO of NewWorld, a marketing and strategy consultancy. “In uncertain times, consumers gravitate toward companies that stand for something real. Advertisers who recognize this will be the ones who don’t just survive the downturn but come out stronger on the other side.” More

A new 46% tariff on Vietnam could soon raise costs for major corporations in the apparel, furniture and toy space, and some of them may hike prices for consumers.
The country became a popular alternative for companies trying to avoid the crossfire of U.S. trade tensions with Beijing.
The duties will hit companies at a time when many consumers have become value-conscious and more selective about spending.

File: workers at the Maxport factory, which makes activewear for various textile clothing brands, in Hanoi. 
Nhac Nguyen | Afp | Getty Images

Retailers and brands have turned to Vietnam to manufacture goods from sneakers to couches while moving some or all production out of China.
For years, China’s southern neighbor became a popular alternative for companies trying to avoid the crossfire of U.S. trade tensions with Beijing. Now, as President Donald Trump expands his tariff targets, they can no longer steer clear.

Trump said he will put a 46% duty on imports from Vietnam as part of a new wave of global levies announced Wednesday. That could soon raise costs for major corporations in the apparel, furniture and toy space, and some of them may pass those increases to consumers in the form of price hikes. The tariffs on Vietnam take effect on April 9.
China exported more goods to the U.S. than any other country for more than two decades, but Mexico surpassed China as the top source in 2023. China is now the second largest supplier to the U.S., accounting for $438.9 billion worth of goods in 2024, according to government data from the Office of the U.S. Trade Representative.
For companies that have looked to diversify the countries they rely on for production and reduce risks from trade conflicts with China, Vietnam has also become a popular place to go. Imports from Vietnam grew to $136.6 billion in 2024, up about 19% from 2023, according to the Office of the U.S. Trade Representative.

Arrows pointing outwards

On the other hand, imports from China rose only 2.8% from 2023 to 2024, according to government data. Imports from China dropped about 18% last year when compared to 2022, when the U.S. brought in $536.3 billion in goods from the country.
The duties will hit companies at a time when many consumers have become value-conscious and selective about spending due to persistent inflation and concerns about the economy. While it is unclear now which companies will raise prices due to the tariffs, businesses may be reluctant to shoulder the higher costs as they forecast lackluster spending in the months ahead.

The companies most vulnerable to Vietnam tariffs

File: A worker at the Maxport factory, which makes activewear for various textile clothing brands, in Hanoi. 
Nhac Nguyen | Afp | Getty Images

Some household names will feel the pinch from Vietnam tariffs. Nike manufacturers about half of its footwear in China and Vietnam, with about 25% coming from Vietnam. Trump will put a 34% tariff on top of existing 20% duties on imports from China, for an apparent rate of 54%, a White House official told CNBC.
The tariffs would be yet another headwind for the sneaker and athletic apparel giant, which already delivered a disappointing forecast for the current quarter. That guidance, which projects a double-digit percentage sales decline in the three-month period, included the estimated impact from tariffs on imports from China and Mexico.
Expanded tariffs could stall or slow Nike’s efforts to revive its brand and improve sales under its new CEO Elliott Hill, a company veteran who took the helm last fall.
Nike shares dropped more than 6% in extended trading Wednesday. Adidas and other major footwear players also rely heavily on Vietnam.
The two companies did not immediately respond to CNBC’s request for comment.
Nearly a third of footwear imports in the U.S. came from Vietnam in 2023, the most recent full-year data available, according to the Footwear Distributors and Retailers of America, an industry trade group.
Steve Madden, for example, said on an earnings call in early November that it would slash its imports to the U.S. from China by as much as 45% over the next year. The footwear maker made that announcement just days after Trump’s presidential victory, following his campaign trail promises to impose steep tariffs on countries like China.
Yet one of the nations Steve Madden has accelerated its move to is Vietnam, along with Cambodia, Mexico and Brazil, CEO Edward Rosenfeld said at the time on the earnings call.
Vietnam was the second largest country for suppliers of Ugg and Hoka parent company Deckers Brands as of this month. The company has 68 supply chain partners in Vietnam, which is surpassed only by its 125 suppliers in China. Deckers shares dropped nearly 9% in extended trading. The company did not immediately respond to a request for comment.

The words ‘Made in Vietnam’ sits on a Puma Training shirt label.
Bloomberg | Bloomberg | Getty Images

VF Corporation, which is made up of footwear, apparel and accessories brands including The North Face, Timberland, Vans and Jansport, has a heavy reliance on China and Vietnam, too. About 38% of its suppliers are in China and 17% are in Vietnam, adding up to 55% of exposure across the two countries, according to a manufacturing disclosure from December.
The company’s shares dropped more than 8% in extended trading Wednesday. VF declined to comment, citing its quiet period before its upcoming earnings report.
The furniture industry has also ramped up its reliance on Vietnam.
In 2023, 26.5% of U.S. furniture imports came from the country, close behind the 29% coming from China,  according to data from the Home Furnishings Association, a trade group that lobbies on behalf of home goods retailers. The group cited investment banking firm Mann, Armistead & Epperson – one of the furniture industry’s top sources for data.
Taken together, that means about 56% of U.S. furniture imports come from both regions combined.
On an earnings call in February, Wayfair CEO Niraj Shah said the shift to countries outside of China has been “a growing trend” since Trump enacted tariffs during his first administration.
He said places like Cambodia, Indonesia, Thailand, the Philippines and Vietnam “have grown as places where folks have factories and where our goods are coming from.”
Wayfair’s stock plunged about 12% in extended trading. In a statement, Wayfair said it is “closely monitoring the evolving trade landscape.” The company added it is “well-positioned to continue offering customers the best possible combination of value, assortment, and experience.”
Toymakers have also leaned on Vietnam to make more merchandise that’s imported and sold to kids and adults across the U.S. Hasbro, SpinMaster, Mattel and Crayola are among the companies that work with GFT Group, one of the largest toy manufacturers in the Southeast Asia.
In addition to long-established manufacturing facilities in China, GFT currently has five production facilities in northern Vietnam that employ over 15,000 workers.
On a call in early March, Funko Chief Financial Officer Yves LePendeven said the company, which is known for its big-eyed plastic collectibles called Pops, was working hard to control what it could in the year ahead. That includes trying to offset tariffs by “renegotiating factory costs, accelerating our shift in production to other sourcing countries, and implementing pricing adjustments,” he said.
On the call, he said about a third of Funko’s global product purchases come from China. He didn’t name the countries that Funko was moving production to, but it is a customer of GFT Group.
Those toymakers did not immediately respond to CNBC’s requests for comment.
Curtis McGill is the co-founder of Hey Buddy Hey Pal, a toy company that specializes in Easter egg decorating kits. He said he expects the 46% tariffs to raise toy costs in the U.S., but added companies will likely be negotiating with suppliers in Vietnam to try to mitigate those hikes.
“A lot of manufacturers and the actual toy companies have been already having conversations with manufacturing plants having to to help in some regards, because the toy companies are getting pressure to try and maintain prices on this side from the retailers,” McGill said.

Where do manufacturers go next?

For companies, including apparel makers, the new tariff policies have raised questions about whether — and where — to potentially move their manufacturing. Last month, an investor asked American Eagle Outfitters about its exposure to Vietnam on its most recent earnings call.
Chief Financial Officer Michael Mathias said the jeans and apparel brand’s production is similar in Vietnam and China, with “high-teens to 20%” of production in each of those countries. He said the company aims to trim that back to single-digits by the back half of the year.
American Eagle shares dipped more than 5% on Wednesday. The company did not immediately respond to CNBC’s request for comment.
Yet both Mathias and American Eagle CEO Jay Schottenstein said on the company’s last earnings call that it will be crucial to stay flexible, while waiting to see how tariffs would play out and which countries would be targeted.
Schottenstein referred to eight years ago during the first Trump administration, when American Eagle also faced challenges and had to figure out a new plan.
Schottenstein said there’s another shift coming, but “nobody knows what the story is yet.”
“I wouldn’t be rushing,” he said. “You go rush, where am I rushing to? I don’t know where I’m rushing to.”
Peter Baum is the chief financial officer and chief operation officer of Baum Essex, a New York-based manufacturer with licenses to make products for brands like Nautica, Betsey Johnson and Steve Madden. During the first Trump administration in 2019, Baum moved factories from from China to the Philippines, Cambodia, Vietnam and India.
He told CNBC on Wednesday that the reciprocal tariffs would do massive damage to his company.
“This is how you start a global depression. After 80 years and five generations Trump just put us out of business,” Baum said.
— CNBC’s Sarah Whitten, Jason Gewirtz and Eamon Javers contributed to this report. More

The Trump administration has expanded its tariffs on aluminum to include canned beer imports and empty aluminum cans.
President Donald Trump is expected to announce sweeping new levies on imported goods at a Rose Garden event Wednesday.
Industry analysts expect the tariffs to hit Modelo brewer Constellation Brands the hardest.

Aluminum cans wait to be filled with craft beer during a production run at Black Plague Brewery in Oceanside, California, U.S., March 14, 2025. 
Mike Blake | Reuters

The Trump administration will implement a 25% tariff of all imported canned beer and empty aluminum cans starting Friday, according to a notice from the Department of Commerce.
The expansion of U.S. aluminum tariffs comes shortly before President Donald Trump is expected to announce sweeping new levies on imported goods at a Rose Garden event at 4 p.m. ET.

Industry analysts expect the tariffs on canned beer imports to weigh most heavily on Constellation Brands. Constellation imports all of its beer from Mexico, including Modelo and Corona; beer accounted for 82% of the company’s sales in its most recent quarter. While Corona is best known for coming in glass bottles, Modelo — the bestselling beer in the U.S. — most commonly comes in cans.
Constellation’s shares were down less than 1% in afternoon trading on Wednesday, but concerns about tariffs have weighed on the stock for months. The company’s shares have fallen 22% since Trump’s election in November.
The updated notice for aluminum tariffs published on Wednesday does not mention levies for imported beer packaged in glass bottles. Aluminum cans accounted for 64.1% of beer distribution in 2023, compared with glass bottles’ 26.9% share, according to the Beer Institute.
For years, canned beer has been gaining market share against its bottled counterpart. Brewers can produce and transport cans more easily than glass bottles, which are heavier, leading to cheaper prices on canned beer for consumers.
The U.S. imports most of its aluminum from Canada. China and Mexico, the two other main targets of Trump’s trade ire, are also major exporters of aluminum to the U.S.

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Emma Hayes took over as head coach of the U.S. women’s national soccer team in June and quickly led the squad to an Olympic gold medal.
She’s looking to make changes to improve women’s soccer.
Hayes says we need to look at soccer through a female lens.

Emma Hayes is on a mission to reinvigorate women’s professional soccer in the United States.
Hayes was hired as head coach of the U.S. women’s national team in June after a disappointing few years for the squad as it dealt with an aging lineup, coaching instability, and increased global competition.

Less than a year in, she has led the U.S. team to an Olympic gold medal and won the 2024 Ballon d’Or as women’s soccer coach of the year — putting the world on high alert that women’s soccer in the United States is back.
Nearly eight months after the U.S. defeated Brazil in the Summer Olympics gold-medal game in Paris, the teams will go head-to-head with the two upcoming friendlies in California on April 5 and April 8.
Ahead of the team’s upcoming friendlies, CNBC Sport spoke to Hayes about how the job is going, the biggest surprises that came with it, her leadership style and the steps she is taking to make U.S. women’s soccer a powerhouse again.

Olympic-sized ambitions

Less than three months on the new job, Hayes found herself leading Team USA at the Paris Olympics, following a 12-year stint as head coach of Chelsea women, where she had established herself as one of the top coaches in women’s soccer.
It may have been a daunting challenge for many, but Hayes said she took it one day at a time.

“We all know the pressures and the expectations that are there in and around the team, but I wanted to create an environment where the players felt relaxed and calm but extremely focused,” Hayes told CNBC.
The England native said she wanted to make sure players did not have to worry about outside pressures.
“I think that by creating that safe bubble, I allowed the players to immerse themselves fully and therefore express themselves in the best way they can on the pitch,” Hayes said.
The U.S. women’s team returned to the podium for its fifth Olympic gold medal after defeating Brazil. The squad had last won gold in 2012.
“The surprise for me was considering all of the pressure, how much joy I would find in it,” Hayes said of the win.

Soccer through the female lens

United States head coach Emma Hayes along the sidelines prior to playing Australia at State Farm Stadium on February 23, 2025 in Glendale, Arizona. 
Brad Smith | ISI Photos | USSF | Getty Images

Following the Olympics, Hayes focused on rebuilding the program to sustain that success. She has turned her attention to areas like creating a stronger soccer pipeline for the future and designing training specifically for women athletes.
“Everything we have been exposed to in our sport has been through the male lens, so we aim to address that and put the sport of soccer in a situation, hopefully for so many players that can experience in the game in a much different way, and ideally through a female lens,” Hayes said.
Hayes said that mindset will apply to everything from recovery methods to strength and conditioning and even tactical information.
The 48-year old coach admitted the changes will take a lot of work and require coach education and even new programs.
“It’s a huge project but one that we’re very much excited to take part in,” she said.
Hayes also aims to use data, analytics and artificial intelligence in more productive ways.
For example, Hayes said that women traditionally have less power in their shots than men, but the data shows they actually score more goals from distance than in the men’s game.
She added that data from a smart ring like Oura, which tracks body temperature, could aid training and recovery.
“I feel like without those data insights, perhaps we won’t make the advances in our game that we would like to,” she said.

The next generation of soccer players

Emma Hayes of the United States talks to her team during USWNT training at San Diego FC Performance Center on February 25, 2025 in El Cajon, California. 
Brad Smith | ISI Photos | USSF | Getty Images

Hayes is also turning her attention to the next generation of women’s soccer players. She said she’s concerned about the number of players who have dropped out of the sport.
Studies have shown that increasing numbers of girls are dropping out of sports when they hit puberty for a variety of reasons, which include social expectations and lack of quality programs.
“I think that’s something that has to be addressed,” she said. “The dropout rates, in my honest opinion, can be avoided if we understand girls better.”
Hayes said more needs to be done to keep kids in sports because of long-term effects on their lives.
She pointed out that studies have shown that female athletes are more likely to be successful business leaders. A 2023 Deloitte survey found that 85% of women who played competitive sports say the skills they learned were important to success in their professional careers.
As she tries to overhaul the U.S. women’s program, Hayes is looking at the big picture. The career soccer coach said she hopes that she can have a lasting impact on the sport she loves.
“Winning on the field is one thing, and I absolutely enjoy doing that, but I’m all about leaving the sport in a better place and making sure that create a system and an environment where generations beyond those that maybe I represent, you know, could enjoy the sport at a high level,” Hayes added. More

Manhattan apartment sales rose 29% in the first quarter, according to real estate companies.
The total value of apartment sales in the city reached $5.7 billion, up 56% over the same quarter last year.
The strength has largely been driven by the high end of the market and luxury properties, as the wealthy sought a safe investment.

People walk by a view of residential luxury towers along nicknamed Billionaires Row, a stretch of 57th Street that holds the majority of Manhattan’s supertall luxury towers on May 16, 2022 in New York City. 
Spencer Platt | Getty Images News | Getty Images

Manhattan apartment sales jumped 29% in the first quarter from the same period a year ago, as the wealthy sought refuge from volatile stocks to buy real estate, according to new reports.
There were 2,560 closed sales in the quarter, up from 1,988 a year ago, according to a report from real estate appraiser Miller Samuel and brokerage Douglas Elliman. The total value of apartment sales increased even more, reaching $5.7 billion, up 56% over the same quarter last year.

The strength has largely been driven by the high end of the market and luxury properties. Sales of apartments priced at over $5 million soared by 49% compared with a year ago, according to brokerage Compass. The ultra-high-end, or properties priced at $20 million or more, had its best first quarter since 2019, Compass said.
“Largely insulated by mortgage-rate fluctuations and driven by portfolio diversification strategies, this highlights renewed confidence among luxury buyers and underscores the broader generational wealth underway,” Compass said.
Since the ultra-wealthy tend to buy apartments in cash, without needing a mortgage, they have been less deterred by continually high interest rates. Fully 58% of the sales in the quarter were all cash, with the more expensive apartments (over $3 million) seeing 90% of sales from all-cash buyers.
The weakest segment of the market was what brokers consider the “mid-market” of Manhattan real estate, or properties priced between $1 million and $3 million. Signed contracts for those properties declined by 10%, according to Compass, while properties at the lower end, priced between $500,000 to $1 million performed better.
Brokers say the renewed strength of Manhattan real estate is being driven by both macro and micro forces.

While Manhattan’s real estate market has long been linked to the stock market, given the city’s reliance on financial markets for jobs and wealth, apartment sales decoupled from the volatile performance of stocks in the first quarter. Brokers say the uncertain outlook for stocks makes real estate and hard assets more attractive, especially in prime wealth markets like Manhattan.
They also say back-to-office mandates from big banks and other companies are bringing affluent buyers back to the city on a more permanent basis. The emergence of the “boomerang wealthy” — those who moved to spots like Florida during the pandemic and are now moving back to New York — is also boosting sales.

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“There’s a noticeable movement of people returning from Florida and relocating from Los Angeles,” said real estate agent Charlie Attias of Compass.
The “great wealth transfer” is also driving sales. With trillions of dollars starting to pass from baby boomers to their children and relatives, brokers say a growing number of buyers are the children of wealthy parents buying with funds from a trust or family office.
“We’re seeing a notable increase in activity from family offices, many of which are acquiring real estate as long-term legacy assets,” said real estate agent Cindy Scholz of Compass.
Granted, sales that closed in the first quarter were typically signed and negotiated months earlier, so the March uncertainty around markets and the economy may not be reflected in the numbers.
The first quarter of 2024 was unusually slow, making the first quarter of 2025 by comparison look more attractive, according to Jonathan Miller, CEO of Miller Samuel. Despite the 29% increase in sales, the sales total was just 1.1% better than the historical average for the past decade, he said.
Still, signed contracts in March, which are a predictor of sales in the coming quarters, were also strong, especially for luxury. Signed contracts for apartments priced over $10 million tripled in March, according to Douglas Elliman.
“It’s clear that Manhattan’s market is not just holding steady — it’s thriving,” said Pamela Liebman, president and CEO of Corcoran. More