
'Tough' Japan under pressure as Trump threatens higher tariff
RYOHEI YASOSHIMA and RIEKO MIKI
WASHINGTON/TOKYO -- U.S. President Donald Trump's talk of imposing a tax as high as 35% on Japanese goods has put Japan in damage control mode and may force it to back down from its call to eliminate all additional tariffs.
Japanese Prime Minister Shigeru Ishiba was pressed about his response to Trump's hard line on Wednesday by Constitutional Democratic Party leader Yoshihiko Noda at a party leaders' debate hosted by the Japan National Press Club.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Mainichi
39 minutes ago
- The Mainichi
Japanese rice traders expect prices to drop over next 3 months
TOKYO (Kyodo) -- Many Japanese rice traders expected in June that prices of the staple food would drop over the next three months, data from a public-interest association showed Friday, with the government releasing substantial quantities from its stockpiles. Marking a record fall of 24 points, the index gauging the price outlook slid below 50, meaning more respondents believe prices will decline than expect rises, last month, the Rice Stable Supply Support Organization said. It was the index's first fall below the line since April 2022. Published for the first time since the government decided in late May to release its stockpiled rice through direct contracts with retailers, the index stood at 35 in June -- the lowest since September 2021, during the COVID-19 pandemic. But while the outcome boosts expectations that rice prices will become more reasonable in retail stores, it remains uncertain whether they will continue to decrease given that extreme heat in Japan could hamper this year's harvest, some analysts say. The most significant factor in the decision by the traders was "national policy," cited by 49 percent, as government stockpiled rice began hitting store shelves in late May under the initiative of Shinjiro Koizumi, who became farm minister that month. Other factors cited were the "procurement situation of rice" at 26 percent, "domestic inventory level" at 18 percent, and "consumer trends" at 5 percent, according to the survey targeting 139 vendors and groups, conducted over about a week from June 19. The price of 5 kilograms of rice stood at 3,920 yen ($27) in mid-June, entering the 3,000-yen range for the first time in three and a half months, the government said. The price of stockpiled rice has hovered around 2,000 yen for the same amount. The surge in rice prices started last year, straining households already burdened by inflation outpacing wage growth. In May, rice prices set a fresh record for the eighth straight month, rising 101.7 percent from a year earlier, official data showed.


Asahi Shimbun
an hour ago
- Asahi Shimbun
BOJ official says rate hike in 'pause mode' due to U.S. tariffs
Hajime Takata, a member of the Bank of Japan's Policy Board, attends a financial and economic roundtable meeting with business leaders in Tsu, Mie Prefecture, on July 3. (Kuniaki Nishio) TSU--For the time being, the Bank of Japan will hold off on interest rate hikes while it closely monitors developments in the United States, a BOJ Policy Board member said on July 3. In a speech in Tsu, Mie Prefecture, Hajime Takata said that the BOJ is 'in a state of pause' in raising interest rates due to the need to assess the impact of the U.S. tariff policy. However, since it is difficult to envision a serious recession occurring in the United States, Takata indicated that the BOJ would proceed with interest rate hikes, saying that the BOJ 'will continue to shift gears again after a certain wait-and-see period.' Takata, an economist by training, is considered a 'hawk' who is open to raising interest rates. In the speech, he expressed his belief that the BOJ's 2-percent inflation rate target is 'close to being realized.' Takata then emphasized that the BOJ 'will carefully assess the trend of the U.S. tariff policy and its impact on the Japanese economy.' In particular, he said, the BOJ will confirm the sustainability of 'positive corporate actions,' such as firm capital investments, wage increases and shifting cost increases to prices. Takata also described Japan as an 'advanced country in dealing with trade friction,' having experienced trade rows with the United States in the past. He noted that the financial conditions of Japanese companies have improved in the 30 years since the bursting of the bubble economy, saying, 'I believe that excessive pessimism is also a major risk.' When asked at a news conference following his speech how long the BOJ would 'pause' interest rate hikes, Takata replied, 'I would like to see the situation well into the summer. I am not in a position to say how long it will be.' Regarding the quarterly tankan survey for June, which showed that business confidence among large corporations and manufacturers improved for the first time in two quarters, Takata said, 'Overall, business confidence remained at a favorable level. The outlook is not under any significant downward pressure.'


Yomiuri Shimbun
2 hours ago
- Yomiuri Shimbun
Japan PM Ishiba: Govt to Take all Possible Measures on Tokara Islands Earthquakes
Prime Minister Shigeru Ishiba said Thursday the government will take all possible measures over a series of earthquakes that have been hitting the area around the Tokara Islands in Kagoshima Prefecture since late last month. His comments came after an earthquake at Akuseki-jima Island on Thursday afternoon measuring lower 6 on the Japanese seismic intensity scale of 7, the highest level among the more than 1,000 tremors that have struck the islet and its surroundings since June 21. On Thursday, the government's information liaison office, which was set up at the crisis management center of the Prime Minister's Office on Monday, had its status elevated to be the countermeasures office. Campaigning for the July 20 House of Councillors election officially kicked off on Thursday, which means Ishiba will be traveling all over the nation as the president of the ruling Liberal Democratic Party. 'I've made sure I can give prompt, accurate instructions [if any major quake happens],' Ishiba said to reporters at the Prime Minister's Office.