Latest news with #Trans-PacificPartnership
Yomiuri Shimbun
12-06-2025
- Business
- Yomiuri Shimbun
Japan Should Avoid Solely Relying on U.S., Engage in Global Diplomacy; Strong Ties with Like-Minded Nations is Vital
The Yomiuri Shimbun Shotaro Yachi Shotaro Yachi, former secretary general of the National Security Secretariat, said in an interview with The Yomiuri Shimbun that Japan should not rely solely on the United States, but instead increasingly reach out to build stronger ties with other like-minded nations. The following is excerpted from Yachi's remarks in an interview conducted by Yomiuri Shimbun Staff Writer Yuta Abe. *** Tariffs have been used as a tool intended to resolve trade and economic disputes since the 19th century. The international community became divided into economic blocks through the imposition of high tariffs during the period between World War I and World War II. We must deal with contemporary problems by learning lessons from those bitter experiences. Japan has constantly championed free trade. Continuing the free flow of trade will also benefit nations around the world. During negotiations with the United States over its tariff measures, adopting an approach of seeking respite [from the levies] only for Japan is not the way to go. Japan has been instrumental in the Regional Comprehensive Economic Partnership and the Trans-Pacific Partnership, from which the United States has pulled out. Many nations feel they could be left in a tight spot unless Japan exercises leadership in the political and economic realms. It should be possible to search for areas of cooperation between TPP member nations and the European Union. With regard to the United States, sincerely dealing with issues raised by President Donald Trump will be crucial. This means not sidestepping these issues or attempting to divert attention to other matters. Instead, Japan must face up to these issues head-on and directly explain Japan's position and circumstances. Trump likes making deals and prizes tangible benefits, so Japan will need to conduct sensible discussions grounded in reality. Take, for instance, the purchase of defense equipment from the United States. Japan should not take up this idea simply to eliminate the trade deficit. Buying such hardware from the United States during the process of strengthening Japan's defense capabilities might, in the end, become a useful bargaining chip to some extent, but our thinking must be that we purchase items Japan needs. The nation's contribution to the cost of stationing U.S. military forces in Japan is already above the international standard. In a bid to bolster Japan's defense capabilities, the government plans to increase its expenditure on security-related costs, including defense spending, to 2% of gross domestic product. Even if the nation ultimately exceeds that figure, it should not initially set out to reach 3% as a given, as some officials in the U.S. government have demanded. The United States still possesses the world's most powerful military and strongest economy. However, it is undeniable that other countries will start to catch up, and U.S. national power and international standing is declining in relative terms. The United States also might have grown tired of providing a giant market for other countries and shouldering the burden of defending those nations. As we look at the international situation, Japan should not stick to the conventional 'U.S.-centric approach' that assumed everything would be fine provided it stayed on good terms with Washington. Instead, Japan needs to start reaching out more to other nations. While the premise that the Japan-U.S. alliance remains the foundation of Japan's diplomacy remains, it is vital that Japan builds strong relations with like-minded European nations, Australia, India, members of the Association of Southeast Asian Nations and countries of the Global South. This would be in line with the 'diplomacy with a global perspective' advocated by the cabinet of former Prime Minister Shinzo Abe. Shotaro Yachi Yachi, 81, completed his master's degree at the University of Tokyo. He joined the Foreign Ministry in 1969 and held posts including head of the Foreign Policy Bureau and vice foreign minister before being appointed as the first secretary general of the National Security Secretariat, an entity launched in 2014 during the second administration of former Prime Minister Shinzo Abe. He held that role until 2019. Yachi currently is chairman of the Fujitsu Future Studies Center think tank.
Yahoo
10-06-2025
- Business
- Yahoo
CartCon 2025: Tariffs, turbulence and the future of resilient retail
At second-annual CartCon conference in Napa Valley, CA, the tone was electric with anticipation but also laced with urgency. Billed as a summit for the company's expansive ecosystem of brands, vendors and strategists, the event served as both a product showcase and a pressure valve. Nowhere was that tension more visible than during one of the conference's hardest-hitting panels, a deep dive into the complexities of tariff policy and its ripple effects on global sourcing, consumer pricing and retail resilience. The panel consisted of three voices with rare insight into the collision of policy and commerce: Chris Smith, president of Summit Global Strategies; Tim Manning, former White House supply chain coordinator under President Joe Biden; and Nick Stachel, logistics strategy adviser at Izba Consulting. What followed was not a high-level overview, but a granular exploration of the legal, political and operational forces shaping how, and where, products are made, moved and sold. From globalization to geo-economics Smith opened the discussion by tracing the historical arc of U.S. trade policy. For decades following World War II, American trade strategy revolved around multilateralism. The U.S. saw global trade not just as an economic imperative but as a geopolitical tool, creating allies, raising standards of living and preventing conflict. But in 2016, that long-standing consensus fractured. The bipartisan abandonment of the Trans-Pacific Partnership signaled a sharp pivot. As Smith explained, the political center collapsed under the weight of the 'China Shock,' a term describing the decimation of American manufacturing towns due to offshoring. Smith described President Donald Trump's tariff policy as a psychological reset. Before Trump, U.S. tariffs averaged around 2%. Within months, they jumped to 18% in key categories. This wasn't just an economic strategy, it was anchoring. 'It's like burger sizes,' Smith said, relating back to Wendy's psychological marketing strategies. 'Before Trump, we had singles and doubles. Now the triple is on the menu, and everything else looks small by comparison.' Tariffs, he added, have become Trump's 'cat toy' — a provocative distraction wielded without consistent strategy. Even if future administrations soften tariff policy, Smith warned, the structure of global trade has already shifted. Retailers and manufacturers alike are building permanent workarounds. Inflation, particularly in consumer goods, is the slow-burning consequence. While Smith provided the philosophical backdrop, Manning broke down the legal tools underpinning today's tariff landscape. The real disruption, Manning emphasized, has come through the use, and misuse, of the International Emergency Economic Powers Act (IEEPA). Originally designed as a tool for national security sanctions, IEEPA has been repurposed by the Trump administration to enact sweeping tariffs with little congressional oversight. Manning described the legal and logistical chaos for businesses from these tactics. In just six weeks, the Trump administration issued 17 executive orders using IEEPA authority, stripping trade policy of its usual predictability and process. For businesses, this has been catastrophic. Sourcing strategies built over years have unraveled in days. 'We're in a volatile environment,' Manning said. The cost of doing business now includes factoring in the potential for abrupt, unexplained swings in tariff exposure. Long-term investments have become high-risk bets, and in many cases, they're simply not being made. On-the-ground retail strategy Bringing the policy talk down to the warehouse floor, Stachel outlined how brands are actually coping with this new reality. In the short term, some are fast-tracking inventory from China before new tariffs hit, relying on expedited ocean freight and cross-docking at West Coast ports to minimize delays and avoid customs bottlenecks. Others are making subtler moves — like holding prices steady on high-visibility products – say, a gaming console – while raising prices on accessories and add-ons to recoup margin. Stachel noted that many brands have moved beyond the now-familiar 'China Plus One' strategy, opting instead for a 'China Plus Three' approach. They are spreading risk across Vietnam, India and Mexico, often working with global manufacturing giants like Foxconn that can seamlessly shift production across borders without retooling or retraining labor. In essence, brands are outsourcing flexibility itself. For those planning beyond the current election cycle, geographic diversification is no longer enough. Brands are factoring in port access, transportation infrastructure, exposure to natural disasters and local workforce stability. Some are eyeing countries like Morocco, Colombia and Thailand as next-generation sourcing hubs. Nearshoring to Mexico has particular appeal, not just because of its proximity to U.S. consumers, but because of the downstream economic benefits. 'We're still benefiting from a cross border perspective, from a transportation trucking perspective, from a warehousing perspective, as these border towns are growing, the economies in the small border towns are growing as well,' said Stachel. These sourcing shifts are backed by hard data prepared by Stachel. According to a comparative analysis of emerging manufacturing markets, countries like Vietnam, Indonesia and the Philippines are increasingly viable alternatives to China, not only in terms of labor costs but also port infrastructure and U.S.-bound vessel frequency. Vietnam, for instance, operates nearly 50 seaports, including Ho Chi Minh City and Hai Phong, both of which have multiple sailings to the U.S. each week. Indonesia boasts over 100 ports, including Tanjung Priok in Jakarta. Even Cambodia, though limited in scale, has weekly direct sailings from both Phnom Penh and Sihanoukville. These figures underscore the importance of transportation fluidity and market access in sourcing decisions. As Stachel emphasized, brands are no longer optimizing solely for cost, they're optimizing for resilience. Both Smith and Manning cautioned that the real reckoning may be ahead. While tariff impacts are already being priced in at the retail level, the broader inflationary wave has yet to crest. Smith called inflation the 'other shoe,' likely to drop later this summer as new tariffs pass through the supply chain and collide with already fragile consumer sentiment. Uncertainty, they agreed, has become the greatest tax of all. With businesses unable to predict future policy, many are frozen. Manning advised attendees to monitor key macroeconomic signals, including treasury bond activity, consumer confidence indices and safety stock drawdowns. Executive orders posted on he added, are the best early indicators of a sudden policy shift. What retailers are saying – and doing The audience at CartCon also offered candid perspectives. Through real-time polling, attendees offered a rare window into how brands are navigating the chaos. Asked what recent policy had most affected their supply chains, 68% cited China tariffs, with an additional 24% naming de minimis enforcement, or stricter checks on duty-free, low-value imports. In a sign of just how volatile the environment has become, 64% said they revisit their sourcing strategies quarterly. And nearly half, 47%, have responded by raising prices. Twenty-nine percent have changed sourcing countries, while 18% are simply eating the cost. Looking ahead, most brands aren't betting on reshoring. Asked if they expect to source more from the U.S. in five years, 70% said their sourcing would remain about the same, and 30% expected an increase. No one expected to source less. It was a striking rebuke of the idea that domestic manufacturing is due for a renaissance, at least for the retail segment. Tariffs and uncertainty are already impacting consumer demand. Thirty percent of respondents said they expect a consumer slowdown by Q4 2025, while 45% said they're already feeling one. And yet, the vast majority, 82%, said they are not cutting marketing budgets in response. In today's environment, visibility is survival. In a forward-looking poll, 81% of respondents said online shopping will be the dominant channel in the next decade, compared to just 6% for stores. Even more striking, 75% believe direct-to-consumer models can still succeed, suggesting that agility, not abandonment, is the key to survival. The post CartCon 2025: Tariffs, turbulence and the future of resilient retail appeared first on FreightWaves. 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
Straits Times
08-06-2025
- Politics
- Straits Times
The harsh reality behind Hegseth's fine words in Singapore
US Defence Secretary Pete Hegseth arriving for a trilateral meeting at the Shangri-La Dialogue in Singapore on May 31. PHOTO: REUTERS Ten years ago this month, I was invited by the US government to travel in a US Marine Corp MV-22B Osprey tilt-rotor aircraft transporting then US Defence Secretary Ashton Carter for a flight over the Malacca Strait – a gesture meant to emphasise America's muscular commitment to South-east Asia, and determination to keep the sea lanes of communication open. Mr Carter, a veteran Pentagon official who rose to the top job after serving 11 secretaries of defence, had told the American media just weeks earlier that in terms of the Barack Obama administration's 'rebalance' to Asia, the Trans-Pacific Partnership (TPP) trade agreement 'is as important to me as another aircraft carrier. It would deepen our alliances and partnerships abroad and underscore our lasting commitment to the Asia-Pacific'. Join ST's Telegram channel and get the latest breaking news delivered to you.
Yomiuri Shimbun
02-06-2025
- Business
- Yomiuri Shimbun
Akira Amari: Japan Will Remain ‘Best Partner, Closest Ally of U.S.' as Negotiations Continue Over Trump's Tariffs
Akira Amari Japan will remain the best partner of the United States and act as a bulwark against hegemonic nations, according to former Liberal Democratic Party Secretary General Akira Amari, 75. The following is excerpted from an interview with Amari conducted by Yomiuri Shimbun Staff Writer Ryosuke Okada. *** Japan is the largest foreign owner of U.S. Treasury bonds, which could become a choke point for the United States as that can allow Japan to assert control in that realm. China is making the United States worry that it might sell off a bunch of U.S. bonds, but there will be no such worry coming from Tokyo. Japan will continue to firmly support the credibility of the U.S. economy. Japan serves as a frontline base for the United States' trust and power, acting as a bulwark against hegemonic nations such as China and Russia. It is crucial that people in the U.S. President Trump's inner circle understand the importance of Japan-U.S. relations. For Trump, the most important thing is probably be that he is able to say that he did what no one else could do. It is also important for Japan to provide answers that the United States can accept in areas in which Washington finds particularly unfair. I worked with the Economy, Trade and Industry Ministry to examine non-tariff barriers pointed out by the U.S. trade representative. We studied how Japan should respond to each of the U.S. claims and how far we could go in the negotiations before submitting the list of the items to Ryosei Akazawa, the minister in charge of economic revitalization, ahead of tariff negotiations with U.S. officials. Additional tariffs on Japanese automobiles as well as steel and aluminum products must be abolished. Increasing imports of U.S. biofuels can be an option to offset the U.S. trade deficit in these areas. However, it is impossible to eliminate the U.S. trade deficit with Japan on automobiles. One option would be to establish a Japan-U.S. working-level council to develop common 'standards' on the non-tariff barriers cited by the USTR. It should also be necessary to provide a clear explanation that Japan's U.S. auto imports will increase as long as they are attractive products, as is the case with Tesla's cars being well-accepted in Japan. I was the chief negotiator for the Trans-Pacific Partnership trade pact under the administration led by former Prime Minister Shinzo Abe. The most important thing in negotiations is to have just one contact point. I advised Chief Cabinet Secretary Yoshimasa Hayashi that his role is to coordinate among the various parties within the Prime Minister's Office as the person in charge. Negotiations would not be concluded as soon as relevant ministers tried to show their presence in their respective areas. During the TPP talks, I gathered with relevant ministers at the lawmakers' dormitory. When I asked if I was the one responsible for the negotiations, then Chief Cabinet Secretary Yoshihide Suga simply replied, 'Yes.' This allowed me to tell the U.S. side that no one but Abe can override what I say. Some people say that Pax Americana has come to an end, but the United States must continue to be a stabilizing force in the world. Otherwise, the international order will shift toward the rule by force by China, a military hegemonic power. Japan will remain the best partner and most understanding nation of the United States. Japan should be able to create a framework for the United States to lead the international community in a positive direction. Akira Amari Amari graduated from Keio University's faculty of law. After working at Sony Corp., he was first elected to the House of Representatives in the 1983 election. He has served as the head of the Economy, Trade and Industry Ministry, economic revitalization minister, LDP secretary general and chairperson of the LDP's Research Commission on the Tax System. In the Cabinet led by former Prime Minister Shinzo Abe, formed in December 2012, Amari served as the lead negotiator for the Trans-Pacific Partnership negotiations. He retired in 2024.
Yomiuri Shimbun
31-05-2025
- Business
- Yomiuri Shimbun
U.S. Tariffs, Rice Prices Discussed in Basic Economic Policy Draft; Disaster Prevention Agency Also Discussed
Yomiuri Shimbun file photo Prime Minister's Office The government will aim to maintain the free trade system by taking the lead in expanding the Trans-Pacific Partnership agreement, as part of its efforts to respond to U.S. tariff measures, according to the draft of its basic economy policy for the next fiscal year. The draft of the 'Basic Policy on Economic and Fiscal Management and Reform' also states that the government will 'review rice farming policies to address soaring rice prices.' U.S. tariff measures 'could shake the free trade system built by the post-war international community,' the draft says. It goes on to state that the government will 'grapple with maintaining and strengthening international economic order based on free and fair rules' through international cooperation, such as expanding the TPP and building a more resilient supply chain. Regarding the domestic economy, the draft states it is necessary to take caution against possible impacts of the tariff measures and the economic risks of surging prices.' It stresses the need to mobilize all possible policy measures, including passing costs onto prices as appropriate, to increase people's income and the country's productivity. Touching on the soaring rice prices, the draft states the government will ensure the stable supply of rice through the smooth distribution of its stockpiled rice. It also states that the government will take concrete steps to review its rice farming policies. Prime Minister Shigeru Ishiba has expressed his willingness to review the policy of adjusting rice production, which is effectively a policy of reducing rice acreage, and instead expand sales channels by increasing rice exportation. These stances are reflected in the draft. The draft makes reference to a disaster prevention agency, which the government aims to establish in fiscal 2026. The envisaged organization will be positioned as the central command for the entire government on the coordination of policy measures for disaster prevention. The draft states that the agency will have the authority to issue recommendations to other government bodies, and that the government will secure sufficient funding and personnel for the agency as well as appoint a dedicated cabinet member to head it. According to the draft, the government will also consider setting up regional bases for disaster prevention, an idea which Ishiba has touted. Following adjustments by the ruling parties, the basic policy is expected to be approved by the Cabinet as early as on June 13.
