Japan's economy slips 0.5% in March: JCER
Japanese exports of goods and services declined 2.6% for the month. Exports to the U.S. recorded the sharpest fall at 7.8%, while those to China dropped 6.8%, offsetting the 1.4% rise in exports to the European Union.
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Japan Times
16 minutes ago
- Japan Times
Lutnick: Japan's $550 billion will be directed by Trump
U.S. Commerce Secretary Howard Lutnick made it clear that the $550 billion promised by Japan in the course of tariff negotiations will be real funding from Japan deployed and directed by U.S. President Donald Trump to serve American interests. 'What's going to happen is the investments in America are for the benefit of the economic and national security of the United States of America, driven by Donald Trump,' Lutnick told CNBC on Tuesday. His comments closely track and further support earlier comments by Trump, Treasury Secretary Scott Bessent and Lutnick himself. Together, they have described a pledge that involves new capital from Japan being invested in the United States with America in control and taking 90% of the profits. "It is their money," he added, "their money that's going to create these investments so that we can build the pipelines, we can build the nuclear, we can build semiconductors, we can build pharmaceuticals in America to protect America." Japanese officials view the handshake agreement reached on July 22 differently. They have said that Japan will provide loans, loan guarantees and equity investment up to the $550 billion total through financial institutions backed by the government, and that direct equity investment will be just 1%-2% of the $550 billion. They have also brought into question the governance described by the three U.S. officials. 'We can't cooperate on things that don't benefit Japanese companies or the Japanese economy," Ryosei Akazawa, Japan's chief tariff negotiator, said earlier this month. CNBC host David Faber pressed Lutnick — noting that Japan has said the money will mainly be in the form of loan guarantees to Japanese companies already operating in the United States — and suggested the possibility that there is no meeting of the minds between the United States and Japan on the issue. "No, no, no," Lutnick responded. "We're on the same page." U.S. officials have repeatedly said that the money is essentially a payment in exchange for lowering tariff rates — or raising them less than threatened — and that any failure in honoring the commitment could result in tariffs being increased. If the president is 'unhappy' with the progress, tariffs will 'boomerang' higher, Bessent has said. In the CNBC interview, Lutnick noted the connection between the money and tariff rates. 'Japan has offered to buy down their tax from 25% to 15%. They offered us $550 billion investment fund,' he said. Japan and the United States reached an agreement on July 22 to set the 'reciprocal' tariff at 15% and the auto tariff at the same rate. Lutnick said that the two countries are working to get the terms of the deal down on paper, and that progress is quickly being made. The lack of an agreement document has been a major issue in Japan, especially among politicians in Tokyo. "Every night and every morning, we are finishing the documents,' Lutnick said. 'These are weeks away for the Japan and Korea model, but the other models are set.' On Tuesday, SoftBank Group said it will purchase $2 billion worth of Intel shares, though the company declined to confirm whether the announced investment is part of the $550 billion pledge. U.S. tariffs are already starting the bite. Japanese exports to the United States in July fell 10.1% year on year, declining for the fourth consecutive month. Auto exports to the United States dropped 28.4% year on year in value terms and 3.2% in volume.
Yomiuri Shimbun
2 hours ago
- Yomiuri Shimbun
Japanese Prime Mihister Shigeru Ishiba Delivers Opening Remarks at TICAD 9, Calls for ‘Co-Creation of Innovative Solutions'
YOKOHAMA — Prime Minister Shigeru Ishiba spoke on the importance of co-creating innovative solutions for challenges facing Africa and the world, in his opening remarks at the ninth Tokyo International Conference on African Development (TICAD 9) on Wednesday in Yokohama. 'Japan believes in the future of Africa and will promote investment in Africa,' Ishiba said. The Japanese government, the United Nations and the African Union Commission are among the cohosts of TICAD. During the opening ceremony, U.N. Secretary General Antonio Guterres said, 'With the world's youngest population, abundant natural resources, and a vibrant entrepreneurial spirit, Africa is poised for progress.' In his remarks, Ishiba said that the government and its partners will focus on three key areas: sustainable growth in the private sector; youth and women; and regional integration and connectivity within and outside the region. In the area of sustainable growth in the private sector, Ishiba said that the government will promote initiatives for African startups and Japanese companies to jointly develop industries. Ishiba made reference to drones being used to deliver medicines to remote islands in Nagasaki Prefecture. He said that experimental flights of the drones were conducted in Rwanda. 'Japan faces many challenges, and we would like to borrow the wisdom and strength of Africa to solve them,' Ishiba said. In the area of youth and women, Ishiba said that the key to Africa becoming the world's next growth center is to promote capacity building and employment for young people and women. He said that the government will provide training for 300,000 people over the next three years. Through initiatives promoting economic growth in Africa and the development of artificial intelligence and data science human resources, the government will provide AI-related training to 30,000 industrial personnel in Africa. Ishiba said that in addition to strengthening industrial capabilities, it is necessary to enhance cross-border regional integration and connectivity to achieve further growth in African countries. To strengthen regional integration in Africa, Ishiba said that the government will promote the implementation of the African Continental Free Trade Area (AfCFTA). A committee consisting of representatives from industry, academia and government from both Japan and Africa will be established to discuss strengthening economic ties between Japan and Africa. TICAD 9 is being held across three days until Friday. On the final day, the participants will aim to adopt the 'Yokohama Declaration.' This is the first TICAD hosted in Japan in six years, with the previous conference held in Tunisia in 2022. Representatives from 49 of the 54 African countries are expected to participate, with leaders from 33 countries scheduled to attend. Ishiba will also hold summit meetings with these countries during the conference.
Asahi Shimbun
2 hours ago
- Asahi Shimbun
Ishiba announces initiatives to develop trade, investment in Africa
Prime Minister Shigeru Ishiba speaks at an event Aug. 20 in Yokohama ahead of the official start of the Ninth Tokyo International Conference on African Development. (Pool) YOKOHAMA—Prime Minister Shigeru Ishiba announced several initiatives Aug. 20 to encourage Japanese companies to move into the African market. He spoke at an event related to the Ninth Tokyo International Conference on African Development (TICAD 9), which began in the afternoon. Ishiba announced the Indian Ocean-Africa economic zone initiative to contribute to the development of a huge area from west of the Indian Ocean and covering the African continent. 'Under this initiative, we will further link Africa with the nations in the Indian Ocean region and support efforts in Africa for regional integration and industrial development so that further growth can be achieved,' Ishiba said. The initiative intends to establish an environment to allow for further investment and trade in Africa by Japanese companies. With an increase in Japanese companies exporting to Africa from manufacturing bases in India and the Middle East, the government also plans to utilize official development assistance to set up a distribution network linking African nations as well as the continent with countries outside the region. The government also plans to establish an organ to match Japanese companies with those from other nations to allow for greater moves into the African market. Under a broader plan to create a free and open Indo-Pacific (FOIP) region, the government is seeking to achieve an international order based on rules for the area from Asia to Africa. The latest initiative announced by Ishiba is one part toward the creation of a FOIP as well as to strengthen ties with the Global South group of newly emerging and developing nations. Another initiative announced by Ishiba was a proposal to use ODA to help cultivate the Nacala Corridor development project to link copper mining nations in the African interior with ports on the African east coast. 'This will not only promote African regional integration, but also strengthen the links between Indian Ocean nations and Africa,' Ishiba said. One aim of the initiative is to also bolster Japan's supply chain for important minerals. Forty-nine of the 54 African nations are expected to take part in TICAD 9, which continues until Aug. 22. Japanese companies and organizations are expected to sign about 300 memorandums of understanding regarding cooperative projects with Africa.
