
Subaru bets on new Forester SUV to overcome Trump tariff impact
Subaru will begin producing its new Forester sport utility vehicle in the U.S. from this fall. (Subaru)
SEIYA OTA and TAKAKO FUJIU
TOKYO -- Japanese automaker Subaru is counting on its new Forester sport utility vehicle (SUV) to weather the Trump administration's tariffs, as the company weighs how much production to shift to the U.S.
The U.S. accounts for more than 70% of Subaru's sales, the highest share of any Japanese automaker. Half of those sales are exported from Japan, making the company particularly vulnerable to the auto tariffs imposed by U.S. President Donald Trump earlier this year.

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


Yomiuri Shimbun
an hour ago
- Yomiuri Shimbun
Japan's Nikkei Stock Average Ends at 6-Month High, Tracking Wall Street Rally
TOKYO, June 27 (Reuters) – Japan's Nikkei share average closed at a six-month high on Friday, as technology stocks tracked Wall Street's robust finish overnight. The Nikkei jumped 1.43% to 40,150.79, its highest closing level since December 27. The index rose 4.6% for the week, its sharpest weekly gain since the week of September 23, 2024. The broader Topix rose 1.28% to 2,840.54, gaining 2.5% for the week. 'Investors finally became willing to make long positions on U.S. stocks, underpinned by positive news around easing tensions in the Middle East and expectations for the interest rate cut,' said Takamasa Ikeda, senior portfolio manager at GCI Asset Management. 'Japanese equities mirrored the U.S. trend, led by stocks which are popular among foreign investors.' Overnight, Wall Street finished higher, with the S&P 500 and the Nasdaq just shy of record closing highs as the Israel-Iran ceasefire continued to hold and a raft of economic indicators appeared to support the case for the Federal Reserve lowering borrowing costs this year. In Japan, technology stocks rose, with chip-making equipment maker Tokyo Electron jumping 4.3% to boost the Nikkei the most. Tech start-up investor SoftBank Group rose 2.54%. Defense-related stocks Kawasaki Heavy Industries and Mitsubishi Heavy Industries rose 6.15% and 2.71%, respectively, on expectations of increased defense spending in Japan. Bucking the trend, chip-testing equipment maker Advantest lost 1.07%, weighing the most on the index, as investors booked profits from its more than 40% rise this month. 'Still, the rally on overall IT-related shares will continue. The market is just relocating their targets,' Ikeda said. Of the more than 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 72% rose, 24% fell and 2% traded flat.


The Mainichi
2 hours ago
- The Mainichi
Nikkei ends above 40,000, 1st time since Jan. as tariff woes ease
TOKYO (Kyodo) -- Tokyo stocks rose Friday for a fourth straight day, with the Nikkei index ending above the 40,000 line for the first time since January, as worries about hefty U.S. tariffs eased. The 225-issue Nikkei Stock Average closed up 566.21 points, or 1.43 percent, from Thursday at 40,150.79, its highest level since Dec. 27. The broader Topix index finished 35.85 points, or 1.28 percent, higher at 2,840.54. On the top-tier Prime Market, gainers were led by nonferrous metal, transportation equipment and securities house issues. The U.S. dollar briefly strengthened to the upper 144 yen range in Tokyo as the Japanese currency, seen as a safe-haven asset, was sold on hopes for progress in tariff negotiations between the United States and other countries, dealers said. The Nikkei benchmark briefly jumped over 600 points as investors welcomed the U.S. administration's announcement Thursday that President Donald Trump could extend a 90-day pause on so-called reciprocal tariffs set to expire July 9. The market was also supported by easing tensions in the Middle East, as the cease-fire agreed earlier in the week by Israel and Iran appeared to be holding, brokers said.


Yomiuri Shimbun
2 hours ago
- Yomiuri Shimbun
Japan's Largest Shipbuilders to Come Together as Parent, Subsidiary Amid Tariff Talks
Japan's largest shipbuilder, Imabari Shipbuilding Co., announced Thursday that it will turn the country's second-largest shipbuilder, Japan Marine United Corp. (JMU), into a subsidiary. Imabari will acquire a 60% stake in the company. The move will create a giant corporate group that will control half the domestic market by shipbuilding tonnage. The two companies are looking to compete with Chinese and Korean shipbuilders by scaling up and reducing costs. Cooperation in the shipbuilding sector is also a major theme for Japan's tariff negotiations with the United States. Moves by Japanese companies to improve their competitiveness could help Japan in the negotiations. Imabari Shipbuilding, based in Ehime Prefecture, currently holds a 30% stake in JMU, which is based in Yokohama. The other 30% of JMU shares will be purchased from JFE Holdings, Inc. and IHI Corp., which have funded the company together with Imabari. The acquisition will go through as soon as Imabari receives approval from regulatory authorities in Japan and abroad. JFE and IHI will both see their stake in JMU fall from 35% to 20%. The value of the deal has not been disclosed. Acquiring JMU as a subsidiary 'will create synergy through the merging of our construction capabilities with JMU's technical capabilities in ship design,' said a spokesperson for Imabari. The companies aim to improve production efficiency through economies of scale that will make it cheaper to procure parts. They also hope to boost their development capabilities by combining their technological fortes. Imabari was founded in 1901 and has 10 shipyards, mainly in the Chugoku and Shikoku regions. The company builds various types of ships, including tankers, container ships and large bulk carriers that ferry ore and grain. JMU was formed in 2013 through the merger of JFE's and IHI's shipbuilding subsidiaries. It is known for building vessels, such as destroyers, and has shipyards in Yokohama and Kure, Hiroshima Prefecture. Imabari Shipbuilding and JMU entered into a capital and business alliance in 2020. They established a joint venture in 2021 for ship design and sales and have been working to improve manufacturing efficiency by standardizing parts. Japan was the global leader in shipbuilding in the 1990s, accounting for 40%-50% of the world market by tonnage. However, with the rise of Chinese and Korean builders backed by government support, Japan's share has fallen below 20%. Surrounded by the sea, Japan relies on ships to transport many of its resources and foodstuffs, making shipbuilding key to the country's economic security. The government has decided to help revitalize the shipbuilding industry. In tariff talks with Washington, Japan has proposed cooperation in the field, given that the United States is also seeking to revive its shipbuilding industry.