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Kyodo News
4 days ago
- Automotive
- Kyodo News
FOCUS: Trump wants Japan's clout, but more needed before tariff deal
By Takuya Karube, KYODO NEWS - 4 hours ago - 03:05 | All, World As widely expected, U.S. President Donald Trump held talks with Japanese Prime Minister Shigeru Ishiba in Canada, but their conversation turned out to be rather brief, indicating there is much more work to do before they can strike a deal on tariffs. Trump and Ishiba sat down together on Monday for about half an hour on the sidelines of a Group of Seven summit, producing a mere confirmation that trade negotiations will continue following six rounds of ministerial discussions since mid-April. In an apparent reflection of the not-so-easy situation with Japan, when asked by a reporter how his second in-person meeting with Ishiba went, Trump responded with only one word: "Well." Later, on the way back to Washington on Air Force One, Trump said it was a "great conversation" and "I thought he was terrific, actually," referring to Ishiba. But he added that the Japanese are "tough." With the imposition of hefty tariffs on imports, Trump has pledged to slash U.S. trade deficits and rejuvenate domestic manufacturing. The United States imports far more than it exports, with Trump strongly believing its negative trade balance is primarily the result of the "unfair" trade practices of other countries. In the case of Japan, Trump and senior officials of his administration have often complained that almost no American cars are sold in the country, blaming the situation on perceived market barriers such as Tokyo's safety and environmental regulations. They have pointed to the low sales volume in Japan as a good example of American manufacturers not being on equal footing with their rivals. Unlike Japan, which maintains a zero-tariff policy on imported passenger vehicles, the Trump administration raised the tariff rate on such vehicles by 25 percent to 27.5 percent in early April. Among the Trump administration's barrage of higher tariffs, the sharp hike is Japan's biggest headache as the automotive industry is a powerful driver of its economy. "Automobiles are truly a major national interest," Ishiba told reporters, suggesting that Trump's resistance to scrapping or substantially lowering the auto tariff remains a key impediment in negotiations. "We will do everything in our effort to protect this kind of national interest." William Chou, deputy director of the Hudson Institute's Japan Chair, said that in light of recent signals from Tokyo and Washington, he sees neither side as being in a rush to make a deal. Chou said that is partly due to their aim of gaining "negotiation leverage." Compared with other major U.S. trading partners, Japan has far more strength in bargaining, he said, noting that it has been the largest investor in the United States in recent years, employing more than 1 million workers, and it also has an incomparable capacity to cooperate on the economic security front. When Ishiba visited Washington in February, he pledged to Trump that Japan's direct investment, totaling about $800 billion, would be further increased to $1 trillion. Trump has framed higher tariffs as a means to protect national security, using Section 232 of the 1962 Trade Expansion Act as a legal basis. He regards sectors such as automobiles, steel, semiconductors, critical minerals, energy and shipbuilding as top priorities. "While other American allies may have been able to collaborate with Washington in a few of these sectors, only Japan has the technical know-how, the manufacturing capacity, the financial resources and the shared heightened concerns over economic coercion (from China) to work with the U.S. in all of these sectors," he said. Trump has given Japan and other key trading partners a 90-day reprieve from what he calls country-specific "reciprocal" tariffs. Last week, U.S. Treasury Secretary Scott Bessent, the point man for the tariff negotiations, said Washington could extend the pause, set to expire in early July, if its trading partners continue to negotiate "in good faith." Wendy Cutler, a former acting deputy U.S. trade representative, said Japanese negotiators have the advantage as the administration is "under heavy pressure to produce trade deals during the 90-day truce period." Cutler said that although reducing Japan's trade surplus is the number one priority for the administration, the scope of negotiations is broad, as objectives ranging from improving market access to boosting cooperation in critical minerals, energy and other sectors deemed strategic to national security are also in play. Looking ahead, Cutler, who is now vice president at the Asia Society Policy Institute, and Chou of the Washington-based think tank both believe there could be bumps in bilateral relations even if the two countries manage to reach some agreement in the coming weeks. They suggested that the areas of potential economic security cooperation could be a double-edged sword as the Trump administration may unleash more tariffs in sectors important to Japan, including semiconductors, pharmaceuticals and parts for commercial aircraft, all of which are currently subject to its investigation under Section 232. Chou said that "another hiccup may be the lack of Japanese movement" on a liquid natural gas project in Alaska, a pillar of Trump's energy agenda. "If there remains inaction (either by the Japanese private sector or the government), there will likely be continued frustration in the White House that may spill over," he said. Related coverage: PM Ishiba says Japan Inc. suffering under Trump tariffs Trump says he sees chance of trade deal with "tough" Japan G7 leaders agree to expand critical minerals cooperation
Kyodo News
4 days ago
- Automotive
- Kyodo News
FOCUS: Trump wants Japan's clout, but more needed before tariff deal
By Takuya Karube, KYODO NEWS - 17 minutes ago - 03:05 | All, World As widely expected, U.S. President Donald Trump held talks with Japanese Prime Minister Shigeru Ishiba in Canada, but their conversation turned out to be rather brief, indicating there is much more work to do before they can strike a deal on tariffs. Trump and Ishiba sat down together on Monday for about half an hour on the sidelines of a Group of Seven summit, producing a mere confirmation that trade negotiations will continue following six rounds of ministerial discussions since mid-April. In an apparent reflection of the not-so-easy situation with Japan, when asked by a reporter how his second in-person meeting with Ishiba went, Trump responded with only one word: "Well." Later, on the way back to Washington on Air Force One, Trump said it was a "great conversation" and "I thought he was terrific, actually," referring to Ishiba. But he added that the Japanese are "tough." With the imposition of hefty tariffs on imports, Trump has pledged to slash U.S. trade deficits and rejuvenate domestic manufacturing. The United States imports far more than it exports, with Trump strongly believing its negative trade balance is primarily the result of the "unfair" trade practices of other countries. In the case of Japan, Trump and senior officials of his administration have often complained that almost no American cars are sold in the country, blaming the situation on perceived market barriers such as Tokyo's safety and environmental regulations. They have pointed to the low sales volume in Japan as a good example of American manufacturers not being on equal footing with their rivals. Unlike Japan, which maintains a zero-tariff policy on imported passenger vehicles, the Trump administration raised the tariff rate on such vehicles by 25 percent to 27.5 percent in early April. Among the Trump administration's barrage of higher tariffs, the sharp hike is Japan's biggest headache as the automotive industry is a powerful driver of its economy. "Automobiles are truly a major national interest," Ishiba told reporters, suggesting that Trump's resistance to scrapping or substantially lowering the auto tariff remains a key impediment in negotiations. "We will do everything in our effort to protect this kind of national interest." William Chou, deputy director of the Hudson Institute's Japan Chair, said that in light of recent signals from Tokyo and Washington, he sees neither side as being in a rush to make a deal. Chou said that is partly due to their aim of gaining "negotiation leverage." Compared with other major U.S. trading partners, Japan has far more strength in bargaining, he said, noting that it has been the largest investor in the United States in recent years, employing more than 1 million workers, and it also has an incomparable capacity to cooperate on the economic security front. When Ishiba visited Washington in February, he pledged to Trump that Japan's direct investment, totaling about $800 billion, would be further increased to $1 trillion. Trump has framed higher tariffs as a means to protect national security, using Section 232 of the 1962 Trade Expansion Act as a legal basis. He regards sectors such as automobiles, steel, semiconductors, critical minerals, energy and shipbuilding as top priorities. "While other American allies may have been able to collaborate with Washington in a few of these sectors, only Japan has the technical know-how, the manufacturing capacity, the financial resources and the shared heightened concerns over economic coercion (from China) to work with the U.S. in all of these sectors," he said. Trump has given Japan and other key trading partners a 90-day reprieve from what he calls country-specific "reciprocal" tariffs. Last week, U.S. Treasury Secretary Scott Bessent, the point man for the tariff negotiations, said Washington could extend the pause, set to expire in early July, if its trading partners continue to negotiate "in good faith." Wendy Cutler, a former acting deputy U.S. trade representative, said Japanese negotiators have the advantage as the administration is "under heavy pressure to produce trade deals during the 90-day truce period." Cutler said that although reducing Japan's trade surplus is the number one priority for the administration, the scope of negotiations is broad, as objectives ranging from improving market access to boosting cooperation in critical minerals, energy and other sectors deemed strategic to national security are also in play. Looking ahead, Cutler, who is now vice president at the Asia Society Policy Institute, and Chou of the Washington-based think tank both believe there could be bumps in bilateral relations even if the two countries manage to reach some agreement in the coming weeks. They suggested that the areas of potential economic security cooperation could be a double-edged sword as the Trump administration may unleash more tariffs in sectors important to Japan, including semiconductors, pharmaceuticals and parts for commercial aircraft, all of which are currently subject to its investigation under Section 232. Chou said that "another hiccup may be the lack of Japanese movement" on a liquid natural gas project in Alaska, a pillar of Trump's energy agenda. "If there remains inaction (either by the Japanese private sector or the government), there will likely be continued frustration in the White House that may spill over," he said. Related coverage: PM Ishiba says Japan Inc. suffering under Trump tariffs Trump says he sees chance of trade deal with "tough" Japan G7 leaders agree to expand critical minerals cooperation
Japan Forward
5 days ago
- Politics
- Japan Forward
G7 Summit: Is South Korea Being Passed Over?
As the two-day G7 Summit wraps up in Canada, South Korea is facing renewed fears of diplomatic marginalization. On June 16, Seoul officials were caught off guard when they learned, via a breaking news report, that President Donald Trump would be leaving the summit a day early. The announcement came despite a planned meeting between Trump and South Korea's newly elected president, Lee Jae-myung, on the sidelines of the international forum. That South Korean side was not informed in advance through official channels has raised eyebrows. It is irregular for a foreign leader to abruptly cancel a meeting without prior consultation, and even more so for the other party to learn of it through the media. Seoul had anticipated holding the bilateral talks on June 17. While Trump's early departure, reportedly due to escalating Israel-Iran tensions, may appear understandable, it's reigniting a deeper anxiety in South Korea: the specter of Korea Passing. The term describes a tendency of major powers to discuss geopolitical matters surrounding the Korean Peninsula while excluding the South from the discourse. Strain in Seoul-Washington relations appeared almost immediately after Lee was inaugurated on June 4. His first phone call with Trump was delayed by three days and passed without any formal statement from the White House. By contrast, Lee's predecessor, Yoon Suk-yeol, received a congratulatory call from Washington on the day of his election victory. Lee Jae-myung is sworn in as South Korea's president and delivers his inaugural speech on June 4. (©Lee Jae-myung/Facebook) As the Trump administration remains preoccupied with escalating global crises, the lack of coordination with its treaty ally signals more than a mere oversight. For some in South Korea, it reflects a growing misalignment between the two capitals. That misalignment may partly stem from unease in Washington over Lee's approach to China. Within days of his electoral win, American policy analysts cautioned that the new South Korean leader could veer away from the traditional alliance. At a Washington Times Foundation forum in June, Patrick Cronin, Asia-Pacific security chair at the Hudson Institute, said: "If you're going to be closely allied with the United States on security, you're going to be alienating North Korea, China, and Russia." "How Lee Jae-myung's government manages that relationship," he continued, "is going to be crucial for the future of US interests, the future of the Korean Peninsula, and the future of the Korean people." Lee, then head of the Democratic Party, meets with Chinese Ambassador Xing Haiming in June 2023. The meeting drew criticism over what some viewed as Lee's excessive deference to Beijing. (©National Assembly Press Team) Such concerns are not without basis. During a campaign rally in March 2024, Lee appeared to downplay frictions in the Taiwan Strait, remarking, "Why are you picking on China? Just say xie xie [to China] and xie xie to Taiwan, too." The phrase xie xie, meaning "thank you" in Chinese, was widely interpreted as a rhetorical gesture suggesting that South Korea should remain neutral in the cross-Strait conflict. Lee framed the issue as having no relevance to his country's national interests, saying that Seoul should avoid entanglement altogether. Although Lee has been a vocal critic of former President Yoon's perceived deference to Tokyo, he now faces similar criticism for his apparent pro-Beijing proclivities. The collapse of the Lee-Trump talks marked a diplomatic setback for Lee's administration. This is especially true given that his invitation to the G7 came just days after taking office, with many on his team hoping for a successful diplomatic debut. Meanwhile, Japanese Prime Minister Shigeru Ishiba met with Trump on Monday in Canada to discuss a range of pressing issues, including tariffs. The new South Korean president did regain some footing on Tuesday during a 30-minute meeting with Ishiba, where the two agreed to maintain active dialogue and pursue robust bilateral ties. For Lee, who lacks prior foreign policy experience, the challenges are piling up. Beyond establishing personal rapport with foreign leaders, he must soon tackle thornier matters such as the future of American forces on the Peninsula and managing relations with a nuclear-armed North Korea. Whether Lee can recalibrate his strategic posture to reassure Washington while preserving South Korea's autonomy remains an open question. But for now, speculation over Korea Passing lingers. Author: Kenji Yoshida
Arabian Post
5 days ago
- Politics
- Arabian Post
Was Israeli Strike Against Iran A Part Of Donald Trump's Game Plan?
By Nitya Chakraborty Israeli missile strikes against Teheran and Iran's counter offensive entered its fifth day on June 17 Tuesday with U.S. President Donald Trump dramatically cutting short his stay in Canada for G-7 meeting for Washington indicating that he would be busy in peace moves in the next few hours for organizing a ceasefire between Israel and Iran. French President Emanuel Macron also informed at the summit venue that Iran sought Trump's assistance for ending the war. If we look at the chronology of the developments since the early morning of June 13, we will see that the entire course from the beginning of the sudden Israeli strikes to the dramatic exit of Trump from G-7 meeting, was a part of a stage managed event prepared by Trump-Netanyahu duo to achieve the Trump objective of Iran coming to the next round of US-Iran nuclear talks with bended knees with virtually little bargaining power. Trump wants to emerge as a peace maker by bringing victorious Netanyahu and shattered Iranian leaders in the negotiating table. The sixth round of talks on Iran's nuclear programme was scheduled for June 15, Sunday in Oman. Trump wanted to precipitate the deal on his own terms, but he did not get positive signal. The Iranians with their nuclear programme monitored by some top scientists, were not in a mood to surrender to the US President's diktat. They were getting ready for hard bargaining which Trump could not tolerate. The missile strikes by Israel began two days before the scheduled meeting. In the last four days, the nuclear facilities have been damaged in a serious manner, nine top scientists have been killed. With Israel guaranteeing high tech protection to Tel Aviv's air defences, the Iranian missiles could not damage much. It was an uneven war between Israel and Iran in terms of missile quality and technology. Israeli Prime Minister Benjamin Netanyahu was candid when he said that the Israeli objective was to eliminate any Iranian threat to Israel. He even gave a call to Iranians to rise in revolt. In fact, the Israeli defence forces are still targeting Iran's supreme head Ali Khamenei who has been shifted to a secret shelter by the Iranian authorities fearing attack on him. Trump himself said that Israel had a plan to kill Khamenei, but he rebuffed that. This was a way of making it clear that he was not involved if by any chance the Iranian supreme leader got killed. Interestingly, Israel gave advance information to the US President after attack, after that only Trump said that it was Israel's war against Iran, the US had nothing to do with it. Days before, the US government warned its citizens in Israel and asked the Tel Aviv and Jerusalem embassies to be careful in the next few days and look for shelters. An analysis by Zaineb Riduoa for the Washington-based Hudson Institute says that , Israel prepared for its June 13 operation over years of sustained intelligence preparation, real-time intelligence, surveillance, and reconnaissance (ISR), and deep infiltration. Israeli military planners achieved full-spectrum disruption by dismantling and infiltrating Iran's command and control networks, severing high-level communications, and injecting uncertainty into the regime's decision-making processes. As our IPA analyst Asad Mirza mentioned in his piece on June 16, by the time Tehran could react, the damage was already done. Its upper command was wiped out, and its defensive systems were disabled. Crucially, Israel did not rely on cross-border operations. It had pre-positioned remote-activated strike platforms inside Iran and deployed them with surgical precision. This shows its preparations and depth of its infiltration of the Iranian security apparatus. Israel combined a decapitation strike with cognitive disruption. The psychological warfare element – that the strike had come from Iranian soil – amplified the attack's kinetic effects, leaving Tehran paralysed. Unable to determine whether it had been infiltrated or outmanoeuvred, the regime's ability to respond took time to recover and initiate countermeasures. But these were inadequate to penetrate the highly sophisticated air defence system to protect Tel Aviv. In the last 48 hours, there have been intensive discussions about the possible US role in Israeli attacks. In US media, the right wing channels and podcasts have been showing how the Israeli defence forces have shattered the defence system of Iran and how Teheran has got isolated. Among the conservative whites, there is a sort of pleasure at the humiliation of a Muslim nation. Experts mention that the Trump-Netanyahu duo are planning for a regime change though officially, the US state secretary Marco Rubio has ruled that out. The leaders at G-7 however in a signed statement supported Israel's right to self defence and put the blame on Iran for bringing instability in Middle East. The G-7 leaders ruled out regime change as a solution in Iran but their identification with Israeli attack against Iran calling it right of self defence, makes it apparent that despite some high sounding liberal sentiments occasionally, they will go with Trump on Iran. Trump earlier wrote a post in his media platform saying that he had given Iran many chances to reach a nuclear deal with USA' He even said that he warned Iranian leadership that they are facing an attack that's much worse than anything they could imagine. What more is needed to prove that Trump and Netanyahu was in collusion? (IPA Service)
Japan Times
7 days ago
- Business
- Japan Times
Japan and the U.S. face challenges in economic security discussions
Economic security has been an ever-present element in trade talks between Japan and the United States, and an area of broad agreement between the two countries. They both want to work toward ensuring a steady supply of critical materials, and cooperation is seen as a way to achieve that. Beyond the basics, not much progress seems to have been made. Details remain scarce despite frequent references to the theme of economic security by Japanese and U.S. negotiators. Observers say that any initiatives will take years to materialize. Importantly, they note, an agreement on economic security does little to get Japan what it really wants, which is a full removal of the heavy duties imposed by Washington since March. 'It will take time, but I think this is the part where there's the least disagreement,' said William Chou, deputy director of the Japan Chair at Hudson Institute. 'It's just a question of how quickly we can move together to find a good solution in cooperation from both sides.' To a great extent, economic security is about rare earths and about China's dominance of the mining and processing of them. Japan imported nearly 60% of its rare earth materials from China in 2022, down from over 80% in 2009. When it comes to heavy rare earths crucial to the manufacturing of defense equipment and electric vehicles, the reliance remains 100%, according to economy ministry data . Japanese negotiators are careful not to single out any country or any specific material in discussing economic security, preferring to limit what they say to general comments about building resilient supply chains. Informed observers argue that the target and the concerns are obvious. 'I think the trade talks — at least when it talks about economic security — have been with China very much in the foreground,' said Chou. In 2012, researchers discovered a vast trove of mud rich in rare earths 6 kilometers underwater in Japan's exclusive economic zone off of the Ogasawara Islands. But the technology needed to tap the resources is still under development. 'So, ultimately, the dependence on China doesn't change much. That's why we have to develop mining and processing capabilities outside of China,' said Kazuto Suzuki, a director at the Institute of Geoeconomics and a professor at the University of Tokyo. Efforts have been well underway since the 2010s, with Sojitz Corp. and Japan Oil, Gas and Metals National Corp. making several investments in heavy rare earth production projects in Australia. In 2023, the two companies signed a supply agreement with Lynas Rare Earths, under which they will receive up to 65% of the heavy rare earths — dysprosium and terbium — produced from the Mount Weld mine in Western Australia. This output will cover an estimated 30% of Japan's domestic demand. The United States is adapting a different approach, and one that might not bode well for cooperation with Japan. 'Basically, the U.S.'s current economic security policy is very self-centered — it assumes the U.S. can handle all production on its own. But in reality, it can't. Yet it continues to impose tariffs, trying to create a self-contained supply chain within the U.S.,' Suzuki said. 'This is no longer about U.S.-Japan cooperation. The U.S. is not seeking partnership — it's aiming for 100% self-reliance in its supply chains. That leaves very little room for collaboration.' 'There's a huge disconnect between what the U.S. is demanding and the actual reality, so there are a lot of problems — honestly, too many,' Suzuki added. Last Wednesday, China and the United States reached a framework trade deal in London. The deal restores U.S. access to China's rare earths, which had been suspended due to growing trade friction. Chou listed five ways in which Japan can contribute to solving the broader supply-chain problems: investment in U.S.-based mining and processing projects via Japanese trading houses; partnerships with third countries to diversify the supply chain; offering processing capacity in Japan; acting as a 'canary in the coal mine' to signal China's economic coercion; and exploring deep-sea mining as a future area of cooperation. 'I do think that the Trump administration does have a larger economic strategy where tariffs, economic security, foreign investment and technological innovation all are playing, are all interacting with each other,' Chou said. 'It's not just about tariffs.'
