
Foxconn EV tie-up could save Nissan's Japan supply chain
Nikkei staff writers
TOKYO/TAIPEI -- Talks between Nissan Motor and Taiwan's Foxconn on joint use of a Japanese plant for electric-vehicle production could provide a lifeline to Nissan suppliers and help build up an EV supply chain.
The proposed collaboration involves Nissan's Oppama plant in the city of Yokosuka, Nikkei reported Saturday.

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Asahi Shimbun
22 minutes ago
- Asahi Shimbun
Japan unlikely to face U.S. pressure to strengthen yen, ex-top FX diplomat says
Light is cast on a U.S. one-hundred dollar bill next to a Japanese 10,000 yen banknote in this picture illustration shot February 28, 2013. (REUTERS) Japan is unlikely to face pressure from the United States to intentionally strengthen the yen despite President Donald Trump's criticism of its large trade surplus with the U.S., former top currency diplomat Masatsugu Asakawa told Reuters. Trump's focus on addressing the U.S. trade deficit and his remarks about Japan maintaining a weak yen have fueled speculation about potential pressure on Tokyo to adjust the yen's value against the dollar and give U.S. manufacturers a competitive advantage. Asakawa said the dollar's status as a global reserve currency remains solid; however, it has become more susceptible to selling pressure following Trump's April 2 announcement of sweeping 'reciprocal' tariffs. 'If the dollar weakens, that accelerates U.S. inflation, a risk (U.S. Treasury Secretary Scott) Bessent is probably well aware of,' he said in an interview late on Wednesday. 'My understanding is that there is no specific discussion on currency matters between Bessent and (Japanese Finance Minister Katsunobu) Kato in the context of trade talks,' Asakawa said. Asked about the likelihood of a coordinated dollar depreciation akin to the 1985 Plaza Accord in which Washington led the G7 advanced nations to weaken the U.S. currency, he dismissed the possibility. 'A second Plaza Accord is unlikely,' he said, citing the need for agreement from China and Europe. Asakawa retains close contact with incumbent policymakers. As vice finance minister for international affairs from 2015 to 2019, Asakawa was deeply involved in Japan's trade and currency negotiations with the U.S. during Trump's first term as president from 2017. During Trump's first term as president, then Japanese Prime Minister Shinzo Abe successfully persuaded the U.S. president to leave exchange-rate matters in the hands of their finance chiefs, Asakawa said. 'Since then, the notion that currency matters should be left to the finance leaders appears embedded within the U.S. administration,' he said. In their first face-to-face talks in April, Kato said he agreed with Bessent to continue 'constructive' dialogue on currency policy, but did not discuss setting currency targets or a framework to control yen moves. The dollar index, which reflects its performance against a basket of six other currencies, has had its worst first half of the year since 1973, declining some 11%. So far this year, the dollar has fallen 7.5% against the yen. Asakawa said the outcome of bilateral trade negotiations was hard to predict, with Trump showing little sign of heeding Tokyo's efforts to gain concessions on automobile tariffs. Trump ramped up his trade war on Monday, telling 14 nations that they now face sharply higher tariffs from a new deadline of August 1. Japan would see tariffs go up to 25% from 10%, unless it can negotiate a deal with Washington. Japan has several cards it can use in trade talks with Washington such as pledging to boost investment in the U.S., reviewing domestic car safety standards and contributing to liquefied natural gas (LNG) projects in Alaska, Asakawa said. 'Instead of presenting them incrementally, it's better to deliver them as a single package,' he said. After heading the Asian Development Bank until February, Asakawa is currently president of the Tokyo-based Institute for International Monetary Affairs.


Yomiuri Shimbun
34 minutes ago
- Yomiuri Shimbun
Japan's Nikkei Stock Average Slips as Election, US Tariffs Weigh; Disco Gains
TOKYO, July 10 (Reuters) – Japan's Nikkei share gauge slipped on Thursday, stalling ahead of the key 40,000 level, as trade frictions and an upcoming election weighed on investor sentiment. The Nikkei 225 Index .N225lost 0.6% to 39,584.11 after two days of gains. The broader Topix .TOPXshed 0.8%. Retailer Aeon 8267.T plunged 3.5% after postponing its earnings announcement due to the discovery of inappropriate accounting practices at a Vietnamese subsidiary. Chip-maker supplier Disco 6146.T led gains with a 4.3% surge after it raised its first-quarter earnings forecast, citing strong demand related to artificial intelligence. Earlier this week, U.S. President Donald Trump announced 25% tariffs on Japan and other trade partners starting August 1, a date he said was final. Export-dependent Japanremains an outlier among the U.S.'s key trading partners, with multiple rounds of trade talks failing to produce a breakthrough. Meanwhile, Japanese policymakers are increasingly focused on a critical upcoming election on July 20. 'The Nikkei has been struggling to move higher ahead of the 40,000 mark,' said Wataru Akiyama, a strategist at Nomura Securities. 'The stock market may be taking a wait-and-see attitude given the lack of progress in the Japan-U.S. tariff negotiations and the upper house election.' Japan is seeking talks between its tariff negotiator, Ryosei Akazawa, and U.S. Treasury Secretary Scott Bessent during the latter's visit to Japan for the World Expo next week, the Yomiuri newspaper reported, citing Japanese government sources. There were 40 advancers on the Nikkei against 180 decliners. The biggest losers by percentage were Nikon 7731.T, down 4.68%, followed by Tokyo Electric 9501.T, which slid 3.9%. The biggest percentage gainers were Disco, followed by Rakuten Group 4755.T, which rose 4%.


Kyodo News
an hour ago
- Kyodo News
FOCUS: Auto tariff impasse sends U.S. prices up, demand down
TOKYO - No deal before the initial July 9 deadline for U.S. "reciprocal" tariffs is expected to pressure Toyota Motor Corp. and other major carmakers to raise prices to offset higher import costs -- a strategy likely to dent demand and further squeeze profits. Japan-U.S. trade talks have made little headway, dashing Japanese carmakers' hopes for a deal to eliminate or lower an additional 25 percent auto tariff by the expiration of a pause on country-specific tariffs, now extended to Aug. 1. Britain and Vietnam are the only countries to have reached a deal with the Trump administration. Japan had sought an agreement covering not just reciprocal tariffs but also auto duties and other trade issues as a package. A total tariff rate of 27.5 percent imposed on April 3 on cars shipped to the U.S. market is threatening to slow overall auto demand, with analysts noting that manufacturers offering attractive hybrid lineups may be better positioned to withstand the impact. "Automakers, especially those with low sales volumes or in management crisis, will have no option but to raise vehicle prices," said Hiroki Shibata, managing director at S&P Global Ratings. "Now that the auto tariffs have been in place for three efforts to raise vehicle prices will be more apparent in the coming months through September," he said. U.S. President Donald Trump said Monday that the United States will impose a 25 percent tariff on imports from Japan starting Aug. 1, slightly higher than the previously set rate of 24 percent. The president said the latest tariff measure will not affect sector-specific tariffs that have already taken effect, such as those on vehicles, auto parts, steel and aluminum. "It seems the United States has no intention to lower auto tariffs because if it did so, it would keep facing a dilemma of its trade deficit with Japan being left unresolved," said Junichi Makino, chief economist at SMBC Nikko Securities, noting that autos account for about 70 percent of U.S. imports from Japan. "The Japanese government may give up on its efforts to reduce auto tariffs and shift to negotiating lowering levies on other items," Makino said. Among Japan's top three automakers, Toyota is expected to be the least affected by price increases, as demand for its wide range of hybrid models is likely to remain strong in the U.S. market, said Yuta Misumi, associate director at S&P Global Ratings. Hybrid vehicles are gaining popularity in the world's second-largest auto market, with sales jumping 36 percent last year, according to the government-affiliated Japan External Trade Organization. Honda Motor Co. has also attracted U.S. customers with its hybrid lineup, and strong sales in the United States are helping offset sluggish performance in China, the world's largest auto market, Misumi said. Nissan Motor Co., meanwhile, is focused on restructuring, including scaling back global production capacity and its workforce, he added. Toyota, the world's top carmaker by volume, disclosed the impact of the tariffs for just the first two months of the year through March 2026, saying its operating profit was reduced by 180 billion yen ($1.24 billion). Nissan said its full-year operating profit could be reduced by up to 450 billion yen, while Honda estimates the impact of the auto tariffs could reach as much as 650 billion yen in the current fiscal year. Starting July 1, Toyota raised U.S. prices by an average of $270 per vehicle for its Toyota brand models and $208 for its upscale Lexus line. Mitsubishi Motors Corp., which initially responded to the higher tariffs by suspending deliveries from U.S. ports to local dealers, lifted prices for some models by an average 2.1 percent. Toyota said the price hikes were part of its annual review, while Mitsubishi Motors said its new prices were not aimed at addressing the auto tariffs. Among other automakers, Ford Motor Co. reportedly raised prices of some U.S.-bound models made in Mexico, and Subaru Corp. also raised vehicle prices. S&P Global Ratings in May cut its forecast for 2026 U.S. auto sales by 1 million to 15 million vehicles, citing weaker demand partly due to higher prices. Still, analysts say the quickest and most effective way for carmakers to ease tariff pressure is to pass higher import costs on to customers. Analysts say carmakers could also build new plants in the United States to avoid higher tariffs -- a goal the Trump administration is seeking to achieve through its trade policy. But new plants would require significant investment and years to become operational, and carmakers would also need to reorganize parts of their global supply chains by persuading suppliers to serve the new facilities, analysts say. Higher U.S. labor costs and the need to procure some key components from China are also likely to pose challenges, they say. As the United States will remain a key market, "the future performance of each company depends on the success of their efforts to mitigate the tariff impact," Misumi said.