Latest news with #Japan-U.S.
Yomiuri Shimbun
8 hours ago
- Business
- Yomiuri Shimbun
Prime Minister Shigeru Ishiba Says Govt Will Take Measures to Ease Price Hikes of Petroleum Products
The Yomiuri Shimbun Prime Minister Shigeru Ishiba, second from right, speaks at a meeting of ruling and opposition party leaders at the Diet on Thursday. Prime Minister Shigeru Ishiba said on Thursday that the government will begin next Thursday measures to ease possible drastic changes in the price of petroleum products due to the growing conflict in the Middle East. Ishiba, also the president of the Liberal Democratic Party, met with the leaders of the six ruling and opposition parties in the Diet and explained his intent to address the possible price rise of petroleum products. The meeting was held to share the results of the Japan-U.S. tariff talks held in conjunction with the Group of Seven summit. He said measures will be implemented in July and August to prevent the national average price of gasoline from rising above the ¥175 range and that similar measures will be taken for diesel oil, kerosene, heavy oil and aviation fuel. The meeting between party leaders was the first held since June 12, prior to the G7 summit. It was attended by the leaders of the Constitutional Democratic Party of Japan, the Japan Innovation Party, the Democratic Party for the People, Reiwa Shinsengumi, the Japanese Communist Party and the LDP's coalition partner Komeito.
Yomiuri Shimbun
17 hours ago
- Business
- Yomiuri Shimbun
Ishiba Strives to Bridge Divide Between U.S., Europe; Takes Neutral Stance to Avoid Impact on Tariff Negotiations
Masamine Kawaguchi / The Yomiuri Shimbun Prime Minister Shigeru Ishiba holds a press conference for Japanese and foreign media in Calgary on Tuesday. BANFF, Canada — Throughout the latest Group of Seven meeting, Prime Minister Shigeru Ishiba was trying to act as a bridge between Europe and the United States, offering support to U.S. President Donald Trump in order to avoid negative repercussions on Japan-U.S. tariff negotiations. Ishiba concluded his first G7 summit meeting in Canada and returned to Japan on a government-owned aircraft on Wednesday. 'The G7 has worked together despite differences in national positions, and its value is evident,' Ishiba said at a press conference with domestic and foreign reporters after the summit. According to government officials, several European countries expressed concerns about the United States' 'America First' policy during first-day discussions on international affairs and the economy, which Trump attended. However, Ishiba refrained from criticizing the United States and limited his comments to general issues, such as emphasizing the importance of free trade in relation to tariff issues. Regarding the conflict between Israel and Iran, Ishiba showed consideration for the pro-Israel United States and said that Iran's nuclear weapon development was behind the conflict. 'The division between the United States and Europe is deep-rooted,' Ishiba reportedly told those in his group. 'That's precisely why it's important to send a message to make Trump feel that 'Japan understands me.'' Avoiding rifts among G7 members is a top-priority for Japan, which as its only Asian member is pushing for its involvement in the Indo-Pacific region to be increased. During the discussions, Ishiba explained to his fellow G7 leaders the moves China is making in stepping up its hegemonic actions and about how North Korea is pushing ahead with its nuclear and missile development and called for a united response on the issues. Ishiba met with the current leaders of Germany and Canada for the first time and focused on building personal relationships with them, agreeing to strengthen security cooperation. In talks with some of the countries present, they are said to have agreed not to allow the United States to become isolated. Ishiba is scheduled to attend the North Atlantic Treaty Organization summit in the Netherlands on Tuesday and Wednesday and is expected to stay in the tough position between the United States and Europe.
Qatar Tribune
2 days ago
- Automotive
- Qatar Tribune
Slump in auto exports amid tariffs hits Japan's shipments to United States
Agencies Japan's exports dropped in May for the first time in eight months as top automakers like Toyota were hit by sweeping U.S. tariffs – while Tokyo also did not manage to strike a trade deal with Washington this week – which would likely put even more pressure on a fragile economy. Japan's Prime Minister Shigeru Ishiba said after the G-7 summit in Canada on Tuesday that his country had not reached a comprehensive tariff agreement with Washington, as some disagreements persisted between the two nations despite several rounds of talks. Japan and the U.S. 'explored the possibility of a deal until the last minute,' he added. Tokyo is scrambling to find ways to get Washington to exempt Japan's automakers from 25% automobile industry-specific tariffs, which are hurting the country's manufacturing sector. Japan also faces a 24% 'reciprocal' tariff rate starting on July 9 unless it can negotiate a deal with Washington. The data on Wednesday showed that Japanese auto exports to the U.S. fell almost a quarter in May as worries over tariffs grow. Roughly 8% of jobs are tied to the auto industry in Japan, which is home to the world's top-selling carmaker, Toyota, as well as Honda, Nissan and other giants. Japan's automobile sector accounted for about 28% of the total 21 trillion yen ($145 billion) worth of goods the Asian country exported to the U.S. last year. Its total exports in May dropped 1.7% year-over-year by value to 8.1 trillion yen, government data showed, smaller than a median market forecast for a 3.8% decrease, and following a 2% rise in April. Exports to the U.S. slumped 11.1% last month from a year earlier, the largest monthly percentage decline since February 2021, dragged down by a 24.7% plunge in automobiles and a 19% fall in auto components, while a stronger yen also helped reduce the value of shipments. Exports to China were down 8.8%. In terms of volume, however, U.S.-bound automobile exports dipped just 3.9%, indicating that the biggest Japanese exporters were absorbing the tariff costs. 'The value of automobile exports to the U.S. fell, but their volume did not drop that much,' Daiwa Institute of Research economist Koki Akimoto said. 'This indicates Japanese automakers are effectively shouldering the tariff costs and not charging customers.' So far, major Japanese automakers have refrained from price increases in the U.S. to mitigate the tariff costs, except for Subaru and Mitsubishi Motors. 'They are buying time right now to see the course of Japan-U.S. trade negotiations,' Akimoto said. The absence of price hikes could affect their profits, but their fiscal base is generally solid, he added. While Japanese stocks and the yen showed little reaction to the data, shares of car companies have come under pressure this year due to concerns about the tariff impact. Automakers and other transport companies are the second-worst performers this year among the Tokyo market's 33 sector sub-indices, down almost 12%. Only makers of precision equipment have fared worse. Toyota, the world's top-selling automaker, has estimated that tariffs likely sliced 180 billion yen from its profit in April and May alone. Honda has said it expects a 650 billion yen hit to its earnings this year from tariffs in the U.S. and elsewhere. The Japan May trade data provide one of the earliest indications of how U.S. President Donald Trump's tariffs are impacting countries and the global economy. China's data showed this week that the country's factory output grew 5.8% in May year-over-year, the slowest pace in six months. And its outbound shipments to the U.S. plunged 34.5%, the sharpest drop since February 2020. The impending tariffs had driven companies in Japan and other major Asian exporters to ramp up shipments earlier this year, inflating levels of U.S.-bound exports during that period. The Japan data showed imports dropped 7.7% in May from a year earlier, compared with market forecasts for a 6.7% decrease. As a result, Japan ran a trade deficit of 637.6 billion yen last month, compared with the forecast of a deficit of 892.9 billion yen. After the G-7 summit in Canada, Ishiba told reporters that U.S. tariffs were 'hitting many Japanese companies' profits.' The situation 'could have a grave impact on both Japan and the U.S. as well as the world economy, directly and indirectly,' he warned. The hit from U.S. tariffs could add more pressure on Japan's lackluster economy. Subdued private consumption already caused the world's fourth-largest economy to shrink in January-March, the first contraction in a year. However, the smaller-than-expected drop in May shipments suggests that Japan's export driver has not stumbled, slightly raising the chance of the economy avoiding a contraction in the April-June quarter, Yuhi Kawano, economist at Mizuho Securities, wrote in a report. The tariff woes complicate the Bank of Japan's (BOJ) task of raising still-low interest rates and reducing a balance sheet that has ballooned to roughly the size of Japan's economy. The BOJ kept interest rates steady on Tuesday and decided to decelerate the pace of its balance sheet drawdown next year, signaling its preference to move cautiously in removing remnants of its massive, decadelong stimulus. According to an estimate by the Japan Research Institute, if all the threatened tariff measures against Japan were to take effect, U.S.-bound exports would fall by 20% to 30%. Some economists say those duties could shave around one percentage point of the nation's gross domestic product (GDP).
Yomiuri Shimbun
2 days ago
- Automotive
- Yomiuri Shimbun
Carmakers' Anxiety Grows as U.S. Tariff Talks Stall;Japan Exporters May Have No Choice But to Raise Prices
Yomiuri Shimbun file photo Automobiles produced in Japan for export are lined up at the port of Kawasaki in March. Concerns are mounting among Japanese carmakers that Japan-U.S. tariff negotiations will be prolonged, as the two sides failed to reach an agreement at their summit meeting on Monday. With some new U.S. tariffs, including those on automobiles, already in place, Japanese firms can expect a greater impact the longer negotiations continue. Japanese carmakers and companies in other industries may need to review their pricing strategies for the U.S. market. Subhead: Tariff help desks At a press conference following Tuesday's Cabinet meeting, Economy, Trade and Industry Minister Yoji Muto expressed his intention to implement measures that would mitigate the impact on domestic companies, including small and medium-sized enterprises. 'We are receiving an increasing number of inquiries about cash flow,' he said. 'July 9 is the deadline for the [imposition by the United States of its currently suspended] additional reciprocal tariffs, so I want to understand the situation and discuss this issue with the prime minister.' In April, the government set up tariff help desks at 1,000 locations nationwide. By early June, the desks had received about 3,500 consultations, and inquiries related to cash flow had recently increased, according to sources. The automobile industry is particularly concerned about the impact. In fiscal 2024, automobiles and auto parts accounted for a total export value of ¥7.4 trillion, representing 34.2% of all of Japan's to the United States. Given its broad base, the car industry's impact on the Japanese economy will be significant. Vexing situation The Japanese government is seeking a comprehensive review of U.S. tariffs, and lowering automobile tariffs is its top priority in negotiations. A Japanese government official said, 'We must prepare for a long battle,' as the divide between Japan and the United States continues to persist. A senior executive at a major automaker sighed: 'We had high hopes, so this is disappointing. However, an easy compromise would also be problematic. We remain in a vexing situation.' Toyota Motor Corp. estimates that the increased costs associated with U.S. tariff measures will reduce its operating profit by ¥180 billion in April and May alone. Subaru Corp., whose vehicles are popular in the United States, exports from Japan more than 40% of the cars it sells in the United States. This reliance on exports is expected to reduce its operating profit by up to ¥360 billion for the fiscal year ending March 2026. The longer the negotiations drag on, the more the manufacturers' profits will decrease, which will inevitably affect parts suppliers as well. Possible price hikes Japanese automakers have been selling vehicles in the United States primarily from inventories exported before the tariffs took effect. Now, with more than two months having passed since the tariffs were imposed, their inventories are beginning to dwindle. As tariff costs directly translate to export costs, a senior executive at a major automaker stated that it would be impossible for their company to absorb all tariff costs themselves, indicating that they would eventually have to resort to price increases. Many Japanese automakers have been cautious about raising prices, fearing it could dampen demand for new cars. However, they may soon be forced to reevaluate their pricing strategies. 'If additional tariffs on the automobile industry continue, it could trigger a gradual economic recession,' said Takahide Kiuchi, executive economist at Nomura Research Institute Ltd. Nevertheless, he suggested that a revision of tariff policies could occur if inflation concerns in the United States increased. He advised the government to 'patiently await a revision rather than easily yield to the United States.'
Kyodo News
2 days ago
- Business
- Kyodo News
Nippon Steel finalizes deal to make U.S. Steel wholly owned
KYODO NEWS - 35 minutes ago - 23:26 | All, Japan, World Nippon Steel Corp. said Wednesday it has finalized a $14.1 billion deal to acquire United States Steel Corp. as a wholly owned subsidiary after U.S. President Donald Trump reversed his initial opposition and allowed the deal to proceed. The move will give Japan's largest steelmaker, and the world's fourth-largest, greater access to the growing U.S. market for high-grade steel, with U.S. Steel issuing a golden share to the U.S. government that grants veto power over key management decisions. "Together, Nippon Steel and U.S. Steel will be a world-leading steelmaker, with best-in-class technologies and manufacturing capabilities," the two companies said in a joint statement. Nippon Steel said it has concluded a National Security Agreement with the U.S. government and pledged to invest around $11 billion by 2028 in the iconic but struggling Pittsburgh-based company. Under the agreement, the U.S. president or a designated official will have the right to approve certain management decisions, including the closure or idling of U.S. Steel's existing manufacturing facilities in the United States. Related coverage: Trump effectively approves Nippon Steel's takeover of U.S. Steel Trump says U.S. Steel controlled by him with "golden share" Trump's steel tariff hike not raised in Japan-U.S. talks: negotiator
