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Business Times
5 hours ago
- Business
- Business Times
Japan won't fixate on July 9 in US trade talks
[TOKYO] Japan won't fixate on the looming date for so-called reciprocal tariffs to go back to higher levels, Tokyo's top trade negotiator said, signalling that the Asian nation stands ready for the possibility that talks will drag on. 'To avoid any misunderstanding, I would like to confirm that I have not said at all that July 9 is the deadline for negotiations between Japan and the US,' Economic Revitalisation Minister Ryosei Akazawa told reporters on Friday (Jun 20) in Tokyo. 'Japan and the US are in regular communication through various channels, and we will continue to consider what is most effective and engage in appropriate consultations.' Akazawa deflected a question over whether Japan will seek an extension of the deadline for the across-the-board tariffs. The US is poised to return the duties to their original levels on July 9 for many nations, which would mean an increase to 24 per cent from 10 per cent at present for Japan. US Treasury Secretary Scott Bessent has indicated the US may grant an extension to countries that are negotiating in good faith. Asked what Japan would do if the levy returns to 24 per cent or the US puts out a different level unilaterally past the deadline, Akazawa hinted at optimism for an extension. 'We are proceeding with the negotiations in good faith and so we understand that various matters will proceed under that premise,' he said after attending a ruling Liberal Democratic Party's tariff task force meeting. The task force didn't urge him to seek an extension of the July 9 deadline, either, Akazawa said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'In negotiations, setting a deadline and trying to wrap things up by a certain date weaken your position,' he said. 'Once you try to wrap up negotiations, you will have no choice but to accept the outcome.' Japanese Prime Minister Shigeru Ishiba and US President Donald Trump failed to reach a deal earlier this week on the sidelines of the Group of Seven leaders' summit in Canada, despite holding three phone calls to discuss the tariffs prior to their in-person meeting. Akazawa on Friday said he's yet to schedule the next round of negotiations with his US counterparts and that Japan won't set a specific deadline for the talks. He once again described the trade discussions as similar to 'walking through fog,' a phrase he used before the G-7 gathering. The Japanese trade negotiator also hinted at some trouble in vying for time with the US when various matters including rising tensions in the Middle East compete for Washington's attention. 'It is also possible that the US side may find it difficult to allocate sufficient time domestically to make substantial progress in the Japan-US negotiations,' Akazawa said. 'This is truly the case for both sides. We are not solely doing the tariff negotiations.' Akazawa spoke a day after Ishiba met with opposition party leaders, who came away from the conference with the notion that Japan's trade surplus in autos with the US is a sticking point between the two sides. As with other nations, Japan has also been slapped with a 25 per cent tariff on cars and related parts as well as a 50 per cent levy on steel and aluminium. 'Both Japan and the US have national interests that can't be compromised,' Akazawa said. 'Protecting the profits of the automotive industry, which is our key industry, is in Japan's interest.' BLOOMBERG
Eyewitness News
6 hours ago
- Business
- Eyewitness News
Rice prices double in Japan as inflation accelerates
TOKYO - Rice prices doubled last month in Japan as core inflation accelerated, official data showed Friday, posing a threat to Prime Minister Shigeru Ishiba ahead of July elections. The vote for parliament's upper house, due next month, is crucial for Ishiba after public support for his government tumbled to its lowest level since he took office in October, partly due to frustration over the cost of living. In May, Japan's core inflation rate, which excludes volatile fresh food prices, hit 3.7 percent - its highest level since January 2023 - interior ministry data showed. The figure narrowly beat market expectations and was up from a 3.5 percent year-on-year rise logged in April. Rice was more than twice as expensive as a year previously - despite the government releasing its emergency stockpile of the staple grain to try to bring its price down. A supply chain snarl-up has caused a shortage of rice in shops, with the grain's price up 101 percent on-year in May, compared to the eye-watering 98 percent rise in April. The government began releasing stockpiles in February in an attempt to drive down prices, something it has only previously done during disasters. Electricity bills were 11.3 percent higher in May, and gas fees rose 5.4 percent, according to Friday's data. Excluding energy and fresh food, Japan's consumer price index (CPI) rose 3.3 percent, compared to April's 3.0 percent. CASH HANDOUTS To help households combat inflation, Ishiba has pledged cash handouts of 20,000 yen ($139) for every citizen, and twice as much for children, ahead of the election. The 68-year-old leader's coalition was deprived of a majority in the powerful lower house in October as voters vented their anger at rising prices and political scandals. It was the worst election result in 15 years for the Liberal Democratic Party (LDP), which has governed Japan almost continuously since 1955. Earlier this week the Bank of Japan kept its interest rates unchanged and said it would taper its purchase of government bonds at a slower pace, as trade uncertainty threatens to weigh on the world's number four economy. "Policy flip-flops and delayed pass-through from producers to consumers mean inflation will slow only gradually in the coming months," said Stefan Angrick of Moody's Analytics. "This will keep a sustained pickup in real wages out of reach, and with it a meaningful uptick in consumption." Factors behind the rice shortages include an intensely hot and dry summer two years ago that damaged harvests nationwide. Since then some traders have been hoarding rice in a bid to boost their profits down the line, experts say. The issue was made worse by panic-buying last year prompted by a government warning about a potential "megaquake" that did not strike. Going forward, US tariffs are expected to weigh on Japan's growth, with economists predicting a slowdown ahead. Intensifying fighting between Iran and Israel was also adding pressure for energy prices to head north, posing a further risk to the Japanese economy.
eNCA
6 hours ago
- Business
- eNCA
Rice prices double as Japan's core inflation hits 3.7%
TOKYO - Japan's core inflation rate accelerated to 3.7 percent in May, posing a threat to Prime Minister Shigeru Ishiba's leadership ahead of July elections. Rice prices were more than twice as high as they were a year previously, despite the government releasing its emergency stockpile of the staple grain. Frustration over inflation threatens to deal a blow to Ishiba's ruling Liberal Democratic Party next month, when an election for parliament's upper house is due. Friday's data, which excludes volatile fresh food prices, beat market expectations and was up from the 3.5 percent year-on-year rise logged in April. Prices rose for a variety of food products, including non-fresh items, ranging from coffee to chocolate. Electricity bills were 11.3 percent more expensive, and gas fees rose 5.4 percent. Ishiba has pledged cash handouts of 20,000 yen ($139) for every citizen -- doubling it for children -- to help households combat inflation ahead of the July elections. The race is crucial to Ishiba after public support for his government tumbled to its lowest level since he took office in October, which observers say was partly caused by a surge in inflation and soaring rice costs. Rice shortages, caused by a supply chain snarl-up, mean the price of the grain was up 101 percent in May, compared to the eye-watering 98 percent rise seen in April. The government began releasing stockpiles in February in an attempt to drive down prices -- something it has only previously done during disasters. A mosaic of factors lies behind the rice shortages, including an intensely hot and dry summer two years ago that damaged harvests nationwide. Since then some traders have been hoarding rice in a bid to boost their profits down the line, experts say. The issue was made worse by panic-buying last year prompted by a government warning about a potential "megaquake" that did not strike. Going forward, US tariffs are expected to weigh on Japan Inc, with economists predicting a slowdown ahead. Intensifying fighting between Iran and Israel was also adding pressure for energy prices to head north, posing a further risk to the Japanese economy. Earlier this week the Bank of Japan kept its interest rates unchanged and said it would taper its purchase of government bonds at a slower pace, as trade uncertainty threatens to weigh on the world's number four economy.
Japan Today
6 hours ago
- Business
- Japan Today
Rice prices double in Japan as inflation accelerates
By Hiroshi HIYAMA Rice prices doubled last month in Japan as core inflation accelerated, official data showed Friday, posing a threat to Prime Minister Shigeru Ishiba ahead of July elections. The vote for parliament's upper house, due next month, is crucial for Ishiba after public support for his government tumbled to its lowest level since he took office in October, partly due to frustration over the cost of living. In May, Japan's core inflation rate, which excludes volatile fresh food prices, hit 3.7 percent -- its highest level since January 2023 -- interior ministry data showed. The figure narrowly beat market expectations and was up from a 3.5 percent year-on-year rise logged in April. Rice was more than twice as expensive as a year previously -- despite the government releasing its emergency stockpile of the staple grain to try to bring its price down. A supply chain snarl-up has caused a shortage of rice in shops, with the grain's price up 101 percent on-year in May, compared to the eye-watering 98 percent rise in April. The government began releasing stockpiles in February in an attempt to drive down prices, something it has only previously done during disasters. Electricity bills were 11.3 percent higher in May, and gas fees rose 5.4 percent, according to Friday's data. Excluding energy and fresh food, Japan's consumer price index (CPI) rose 3.3 percent, compared to April's 3.0 percent. To help households combat inflation, Ishiba has pledged cash handouts of 20,000 yen for every citizen, and twice as much for children, ahead of the election. The 68-year-old leader's coalition was deprived of a majority in the powerful lower house in October as voters vented their anger at rising prices and political scandals. It was the worst election result in 15 years for the Liberal Democratic Party (LDP), which has governed Japan almost continuously since 1955. Earlier this week the Bank of Japan kept its interest rates unchanged and said it would taper its purchase of government bonds at a slower pace, as trade uncertainty threatens to weigh on the world's number four economy. "Policy flip-flops and delayed pass-through from producers to consumers mean inflation will slow only gradually in the coming months," said Stefan Angrick of Moody's Analytics. "This will keep a sustained pickup in real wages out of reach, and with it a meaningful uptick in consumption." Factors behind the rice shortages include an intensely hot and dry summer two years ago that damaged harvests nationwide. Since then some traders have been hoarding rice in a bid to boost their profits down the line, experts say. The issue was made worse by panic-buying last year prompted by a government warning about a potential "megaquake" that did not strike. Going forward, U.S. tariffs are expected to weigh on Japan's growth, with economists predicting a slowdown ahead. Intensifying fighting between Iran and Israel was also adding pressure for energy prices to head north, posing a further risk to the Japanese economy. © 2025 AFP
Yomiuri Shimbun
7 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.
