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Lutnick warns no ‘fast deals’ for Japan and South Korea

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Commerce Secretary Howard Lutnick said that trade deals with South Korea and Japan could take significantly more time to complete than the framework agreement President Donald Trump announced Thursday with the UK, in a signal that some Asian partners may have to wait for tariff relief.

“You’ve got to spend an enormous amount of time with Japan, South Korea. These are not going to be fast deals,” Lutnick said in an interview on Bloomberg Television.

Lutnick added that India has been “leaning in really hard” and the country was “certainly” a possibility to be among the next countries to reach an agreement. But, he cautioned, “this is a lot of work.”

“When you talk about India, it’s probably 7,000 lines” of tariffs to be changed or modified under a hypothetical agreement, Lutnick said. “It just takes time, and it just takes work—so give us a chance, don’t be pushing and rushing.”

At the same time, Lutnick said he was hopeful that initial deals could serve as templates for their respective regions, helping illustrate what kind of concessions Trump was looking for in exchange for tariff relief.

“We’re trying to show people a frame for how to do business so that we can roll much more quickly, right?” Lutnick said.

The Commerce chief, who has taken a lead role in trade negotiations, said that Trump’s 10% baseline tariffs remained a “bottom line” but that many nations would experience higher rates unless they moved aggressively to open their economies. He also said the UK deal showed ways that nations could see Trump roll back sectoral tariffs he’s imposed on products like automobiles and metals that the president has deemed a national security priority.

Lutnick spoke hours after Trump unveiled the framework agreement, which gives the U.S. increased market access and a faster customs process for exports in exchange for limited relief from levies on autos, steel, and aluminum. But officials in both the UK and U.S. conceded there were still significant details to be worked out, as well as outstanding concerns about longstanding issues like the UK’s digital services tax and food standards.

Following the announcement, Trump told reporters he was “very close” to signing more agreements.

“We have numerous deals,” Trump said.

Trump unveiled the UK deal shortly before Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer were scheduled to depart for Geneva, for weekend meetings with Chinese officials on trade. The U.S. and China have traded punishing tariffs following Trump’s announcement earlier this year, in a tit-for-tat that threatens the global economy.

That effort is likely to be far more complicated than Trump’s efforts to extract concessions from traditional allies and partners, though Trump on Thursday signaled he’d be willing to reduce tariffs if talks were progressing well.

“I think we’re going to have a very good relationship,” he said.

This story was originally featured on Fortune.com



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The AI training gap: Business leaders expect their employees to use AI at work but they aren’t providing them with any guidance

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Good morning! 

It seems as if every business leader in the world is trying to figure out how to embrace AI to stay competitive in a rapidly-changing tech landscape. But when it comes to effectively incorporating the technology, their workforce expectations are not quite lining up with reality. 

Only 10% of C-suite leaders say that their companies are future-ready, according to new data from The Adecco Group, which surveyed 2,000 people, in a report shared exclusively with Fortune. That lack of readiness is likely the result of shoddy workforce training. While almost two-thirds of leaders expect employees to update their skills for AI, only one-third of companies are providing a clear policy on how employees should be using the technology. 

Caroline Basyn, chief digital and IT officer at The Adecco Group, thinks that the training gap can be partially attributed to “ignorance” on the part of executives. “Leaders need to grasp and understand that AI is going to transform the way we work,” she tells Fortune. “There are some industries that have understood it. There are some industries that have not yet understood the relationship between leveraging AI and the results they will achieve, both in terms of revenue and in terms of productivity.” 

She adds that simply using AI isn’t enough—businesses have to completely rethink their organization and workflow to best harness the power of the technology. “Investing in AI products is potentially only half the battle,” she says. “The whole leadership team, the culture and the learning structure, is as important as developing the product in [and of] itself.” 

The report recommends that leaders act to “create, share, and adhere to a responsible AI framework as a matter of urgency” and ensure that employees are well-versed in the policy specifics. Leaders should also consider “an AI ethics committee, company-wide training, and forum for workers to voice concerns.” 

Basyn says there’s no one-size-fits-all model when it comes to training workers how to use AI, and emphasizes that the training program used yesterday may not work tomorrow. But she says that the more personalized AI workforce training is, the better. 

“We need to make career mobility a reality. We need to make sure that we’re planning for the disruption, and empower the employees to build new skills,” she says. 

Sara Braun
Sara.Braun@fortune.com

This story was originally featured on Fortune.com



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A serial entrepreneur, a musician, and Walmart’s CEO walk into an AI factory…

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JPMorgan’s public blockchain move could set a new standard for institutional finance

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FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.



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