Latest news with #JapanEconomy
Bloomberg
16 hours ago
- Business
- Bloomberg
Japan's Prices Climb by Most in Two Years Ahead of Election
Japan's key consumer inflation measure accelerated to a fresh two-year high as Prime Minister Shigeru Ishiba gears up for a summer election and the Bank of Japan mulls the country's price trajectory. Consumer prices excluding fresh food quickened for a third month to 3.7% from a year earlier in May, according to a Ministry of Internal Affairs release Friday. That's the fastest pace since January 2023 and above the 3.6% median estimate of economists surveyed by Bloomberg.
Yahoo
2 days ago
- Business
- Yahoo
More than 70% of Japan firms see tariff impact within expectations, Reuters poll shows
By Kiyoshi Takenaka TOKYO (Reuters) -A significant majority of Japanese firms have found the business impact of U.S. President Donald Trump's tariffs within expectations and have not found it necessary to change investment plans, a Reuters survey showed on Thursday. The United States has imposed a 10% tariff on goods from most countries along with additional tariffs for many big trading partners including Japan, which could face a 24% tariff from July unless it can negotiate a deal. There is also a 25% tariff on cars, a particular sore point for Japan whose economy relies heavily on automobile exports to the United States. About 71% of respondents to Reuters' survey said the impact of U.S. tariffs is within initial expectations, and 84% said they plan to stick to their investment plans for the current business year - typically April-March in Japan. "After all, the Trump administration ends in four years. If we don't carry on with our long-term investments, we'll lose out in competition with other Asian countries," a manager at a machinery manufacturer wrote in the poll. The survey was conducted by Nikkei Research for Reuters from June 4-13. Nikkei Research reached out to 504 companies and 220 responded on condition of anonymity. SALES TAX CUT On Japan's sales tax, four out of 10 respondents said they oppose any tax reduction, whereas the remainder said there should be some form of cut, the survey showed. Cutting the tax to help the public cope with rising prices has become a major issue ahead of upper house elections scheduled for July. A 10% tax is applied to most goods and services. The tax for food and newspapers is 8%. The largest opposition Constitutional Democratic Party of Japan has proposed cutting the 8% rate on food items to zero for one year. Prime Minister Shigeru Ishiba, head of the ruling Liberal Democratic Party, is opposed as sales tax revenue funds social security. "Opposition parties are oblivious to what the sales tax is for. It is the tax that ought to be raised," said an official at a metal and machinery maker. With three out of 10 people aged 65 or above, Japan is the world's most advanced ageing society. A manager at a transportation company favoured a temporary, across-the-board sales tax cut "to fight inflation and stimulate consumption". About 63% of respondents said the government should not rely on bond issuance to fill revenue shortfall in the event of a sales tax cut, whereas 37% were in favour, the survey showed. "The ageing of the population will be advancing further and social security costs will be getting bigger. We should not turn to tax cuts or government bond issuance lightly," said a manager at a chemical company. On the composition of the ruling coalition after the upper house elections, 32% of respondents favoured the current ruling bloc of the LDP and junior partner Komeito, while 20% wanted the Democratic Party for the People to be a third partner, the survey showed. Last year, the LDP and Komeito lost their combined majority in the more powerful lower chamber, making it difficult for Ishiba to implement policies. The Democratic Party for the People quadrupled its lower house seats. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
2 days ago
- Business
- Reuters
More than 70% of Japan firms see tariff impact within expectations, Reuters poll shows
TOKYO, June 19 (Reuters) - A significant majority of Japanese firms have found the business impact of U.S. President Donald Trump's tariffs within expectations and have not found it necessary to change investment plans, a Reuters survey showed on Thursday. The United States has imposed a 10% tariff on goods from most countries along with additional tariffs for many big trading partners including Japan, which could face a 24% tariff from July unless it can negotiate a deal. There is also a 25% tariff on cars, a particular sore point for Japan whose economy relies heavily on automobile exports to the United States. About 71% of respondents to Reuters' survey said the impact of U.S. tariffs is within initial expectations, and 84% said they plan to stick to their investment plans for the current business year - typically April-March in Japan. "After all, the Trump administration ends in four years. If we don't carry on with our long-term investments, we'll lose out in competition with other Asian countries," a manager at a machinery manufacturer wrote in the poll. The survey was conducted by Nikkei Research for Reuters from June 4-13. Nikkei Research reached out to 504 companies and 220 responded on condition of anonymity. On Japan's sales tax, four out of 10 respondents said they oppose any tax reduction, whereas the remainder said there should be some form of cut, the survey showed. Cutting the tax to help the public cope with rising prices has become a major issue ahead of upper house elections scheduled for July. A 10% tax is applied to most goods and services. The tax for food and newspapers is 8%. The largest opposition Constitutional Democratic Party of Japan has proposed cutting the 8% rate on food items to zero for one year. Prime Minister Shigeru Ishiba, head of the ruling Liberal Democratic Party, is opposed as sales tax revenue funds social security. "Opposition parties are oblivious to what the sales tax is for. It is the tax that ought to be raised," said an official at a metal and machinery maker. With three out of 10 people aged 65 or above, Japan is the world's most advanced ageing society. A manager at a transportation company favoured a temporary, across-the-board sales tax cut "to fight inflation and stimulate consumption". About 63% of respondents said the government should not rely on bond issuance to fill revenue shortfall in the event of a sales tax cut, whereas 37% were in favour, the survey showed. "The ageing of the population will be advancing further and social security costs will be getting bigger. We should not turn to tax cuts or government bond issuance lightly," said a manager at a chemical company. On the composition of the ruling coalition after the upper house elections, 32% of respondents favoured the current ruling bloc of the LDP and junior partner Komeito, while 20% wanted the Democratic Party for the People to be a third partner, the survey showed. Last year, the LDP and Komeito lost their combined majority in the more powerful lower chamber, making it difficult for Ishiba to implement policies. The Democratic Party for the People quadrupled its lower house seats.
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
Japan's Exports Fell for First Time in Eight Months as Tariffs Weighed
TOKYO—Japan's exports declined for the first time in eight months in May, highlighting the impact of President Trump's tariffs. Exports, a main engine of growth for Japan's economy, fell 1.7% in May from a year earlier. That was a sharp drop from April's 2.0% rise, as shipments of cars and steel declined, Ministry of Finance data showed Wednesday.
Yahoo
3 days ago
- Business
- Yahoo
Japan exports post first drop in 8 months as US tariffs hit autos
By Makiko Yamazaki TOKYO (Reuters) -Japan's exports fell for the first time in eight months in May, data showed on Wednesday, indicating that sweeping U.S. tariffs were threatening the country's fragile economic recovery. Japanese Prime Minister Shigeru Ishiba and U.S. President Donald Trump have yet to reach a trade deal. Tokyo is scrambling to find ways to get Washington to exempt its automakers from 25% automobile industry-specific tariffs, which are dealing a heavy blow to the country's manufacturing sector. It also faces a 24% 'reciprocal' tariff rate starting in July 9 unless it can negotiate a deal with Washington. Total exports by value dropped 1.7% year-on-year in May, data showed, smaller than a median market forecast for a 3.8% decrease and following a 2% rise in April. Exports to the United States plunged 11.1% last month from a year earlier, while those to China were down 8.8%, the data showed. The tariff threat 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 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 ($4.39 billion) last month, compared with the forecast of a deficit of 892.9 billion yen. The hit from U.S. tariffs could derail Japan's lacklustre economic recovery. Subdued private consumption already caused the world's fourth-largest economy to shrink in January-March, the first contraction in a year. They also complicate the Bank of Japan's 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, signalling its preference to move cautiously in removing remnants of its massive, decade-long 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 will fall by 20-30%. Some economists say those duties could shave around 1 percentage points of the nation's gross domestic product. Japan exported 21 trillion yen worth of goods to the United States last year, with automobiles representing roughly 28% of the total. . ($1 = 145.3400 yen) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
