Trade DP World CEO shrugs off threat of US tariffs By Megha Merani November 18, 2024, 4:34 PM Hindustan Times/Sipa USA via Reuters DP World chairman and CEO Sultan bin Sulayem met with Indian prime minister Narendra Modi in January Bin Sulayem: trade will thrive Tariffs will bolster Brics appeal Delivery is the big issue A prominent Dubai business leader has downplayed the threat of tariffs from the incoming US administration of Donald Trump. Sultan bin Sulayem, chairman and CEO of DP World, one of the world’s largest port operators and a flagship enterprise of the emirate of Dubai, said on Monday that he was unfazed by Trump’s proposed blanket imposition of tariffs on imports. Bin Sulayem warned that new barriers will reinforce the appeal of the Brics group – which brings together Brazil, Russia, India, China and South Africa – to emerging markets, arguing that global trade will thrive despite challenges. “Trade is resilient, while supply chains are not,” bin Sulayem said at the Global Freight Summit on Monday. “What China cannot sell to America because of tariffs, China will sell somewhere else. And what China is not going to sell in America, some other people will be able to fill that … I don’t believe sanctions and non-tariff barriers can work.” Trump has proposed sweeping tariffs, including a 10 to 20 percent duty on all imports, and levies as high as 60 to 100 percent on goods from China. The plan, described as a way to generate revenue and offset potential tax cuts, has drawn sharp criticism from economists and business leaders over its potential to disrupt global trade. Bin Sulayem argued that such measures often lead to shifts in trade flows rather than reductions. He said that African countries have increased their purchases from the Brics bloc of emerging economies by 200 percent in one year. In the Middle East, the UAE, Iran and Egypt have joined the bloc, while Saudi Arabia and Bahrain have attended meetings. He said that the total trade of Brics countries now stands at $1.6 trillion, surpassing the combined trade of the US and Europe at $1.3 trillion. Osama Naji El-Ali: Investment and trade are on a steady eastward trajectory DP World to invest $3bn to develop new ports in India UAE believes trade with Africa is worth the risk Even in regions facing geopolitical challenges, trade continues to find alternative routes, bin Sulayem said. For example, despite disruptions in the Red Sea, shipping lines have rerouted via the Cape of Good Hope. “Consumers are paying the price. Today, people are not looking at how much it’s going to cost; they are looking at whether it’s going to be delivered on time. Delivery on time is a big issue.” DP World is doubling down on investment in emerging markets, which bin Sulayem views as critical for future growth. “We are investing heavily in India,” he said. “The UK, despite what you hear, is one of the strongest economies. I always say they have the best company law, the best finance centre. I don’t care what government comes to [power] in the UK – they cannot destroy their advantage. That’s why we’re expanding.” Bin Sulayem also highlighted efforts to enhance connectivity in Asia, including linking ports in Malaysia with Thailand, Laos and China via rail. “This allows us to access Chinese products from inland areas without relying on traditional shipping routes,” he said.
