logo
Trump vs Toyota?

Trump vs Toyota?

Daily Tribune11-05-2025
With their sleek curves and chrome grilles, the classic American cars on sale at Yosuke Fukuda's yard ooze Californian cool but on Japanese roads new US vehicles are a rare sight -- much to President Donald Trump's annoyance.
Japan's Toyota is the second-top-selling automaker in the United States, where it shifted more than 2.3 million vehicles last year.
Meanwhile US industry leader General Motors sold just 587 Chevrolets and 449 Cadillacs in Japan, while Ford pulled out of the tough Japanese market nearly a decade ago.
And it's not just an aversion to foreign brands -- in 2024 Mercedes-Benz sold more than 53,000 vehicles and BMW sold over 52,000 including Minis.
"They don't take our cars, but we take MILLIONS of theirs!" Trump said in April, accusing Japan of treating its ally "very poorly on trade".
To try and rev up the US auto industry, Trump has imposed a 25 percent levy on imported vehicles, in a major blow to Tokyo.
Many people in Japan admire vintage US cars, but when it comes to new wheels, they hold more trust in domestic brands, Fukuda told AFP.
West Coast hip-hop booms out at his shop Y-Tech, an incongruous slice of Americana amid the rice paddies north of Tokyo.
"To be honest I think the problem is the size of the roads," as well as an impression that US cars break down more often, which is likely unfounded, Fukuda said.
At his garage, the 20 or so classic US models in varying states of restoration include a silver-green 1970 Chevrolet Nova and a 1954 Buick Roadmaster.
But Fukuda also drives a modern SUV -- a General Motors Yukon, which is two metres (6.5 feet) wide and "sticks out or is packed in" when parked in Tokyo's narrow streets.
Although some US cars are smaller, the brands remain a niche choice because "there are hardly any places that sell them or repair them", he said.
'Bowling ball test'
Yuka Fujimoto, a 42-year-old modelling agency manager, told AFP she had never considered buying a US car.
"American cars don't sell very well" in Japan, where domestic automakers offer "a wide range of line-ups including for families", she said.
However Trump believes Japan is keeping out American cars with "non-tariff cheating".
This includes "Protective Technical Standards (Japan's bowling ball test)" he wrote last month on Truth Social.
"They take a bowling ball from 20 feet up in the air and they drop it on the hood of the car. And if the hood dents, then the car doesn't qualify," Trump reportedly elaborated in 2018.
A Japanese transport ministry official in charge of safety standards told AFP that no actual bowling balls are used.
Trump "may be mixing it up with a test where a hemispherical human head model is hit on the hood", the official said.
But the car's bonnet is in fact required to dent to absorb the impact, he explained.
Tweaking Japan's vehicle import procedures is a potential bargaining chip for Tokyo in tariff talks with Washington.
The country could offer to widen access to a simplified screening process which currently applies to 5,000 vehicles per model annually, Japanese media reports said.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Dollar rises on EU-US trade deal but European stocks turn sour
Dollar rises on EU-US trade deal but European stocks turn sour

Daily Tribune

time16 hours ago

  • Daily Tribune

Dollar rises on EU-US trade deal but European stocks turn sour

The dollar jumped Monday on the back of the US-EU trade deal, but the main European stock markets fell, reflecting unease at terms viewed as lopsided. Frankfurt closed sharply down, as shares in German carmakers plunged. Paris dipped, while London -- outside the EU -- also receded. In New York, the S&P 500 and Nasdaq rose, while the Dow largely traded flat. While Brussels defended the deal it struck on the weekend as 'better than a trade war with the United States', several EU countries expressed unhappiness. European capitals saw the agreement's 15% tariffs on most EU exports to the United States -- but none on US ones to the EU -- as skewed. As part of the deal, President Donald Trump said the bloc had agreed to purchase '$750 billion worth of energy' from the United States, and make $600 billion in additional investments. 'While the deal has avoided a much worse outcome for now, it remains to be seen whether it will last,' cautioned Jack Allen-Reynolds, a eurozone economist at Capital Economics. With average US tariffs on EU imports now around 17%, 'we think this will reduce EU GDP by about 0.2%,' he said. He predicted that 'uncertainty is likely to remain high' because Trump 'could still change his mind even after the deal has been finalised and signed'. Oil prices rose strongly. That was partly on relief from the deal -- but also because Trump shortened a deadline for Russia to end its war in Ukraine to August 7 or 9, after which he vowed to sanction countries buying its crude. Monday also saw the start of a fresh round of trade negotiations between China and the United States ahead of August 12, when a 90-day truce between the economic superpowers is scheduled to end. Shares in European companies tracked the unease at the EU-US deal. Volkswagen, BMW and Porsche all shed more than three% as the implications of high tariffs on their exports to the United States sank in. In Paris, shares in Pernod Ricard, which exports wine and spirits to the United States, fell more than 3%. Shares in Dutch brewer Heineken -- the world's second-biggest beer-maker -- lost more than 8% in Amsterdam after it announced a drop in sales. Traders were prepared for a busy week in the United States, with a slew of corporate earnings reports -- including from Apple, Microsoft, Meta and Amazon -- and macro data readings coming their way giving indications about US jobs and growth. The Federal Reserve is expected to keep interest rates unchanged at its meeting this week, with investors focused on its outlook for the rest of the year given Trump's tariffs and recent trade deals. What did EU, US agree? Both sides confirmed there will be a 15-percent acrossthe-board rate on a majority of EU goods -- the same level secured by Japan this month. Most significantly, that means a tariff reduction for the EU auto sector from the 27.5 percent carmakers had been forced to pay. While 15 percent is much higher than pre-existing US tariffs on European goods -- averaging 4.8 percent -- it mirrors the status quo, with companies currently facing an additional flat rate of 10 percent imposed by Trump since April. The EU also agreed its companies would buy $750 billion of liquefied natural gas, oil and nuclear fuels from the United States -- split equally over three years -- to replace Russian energy sources. And it said it would pour $600 billion in additional investments in the United States -- based on the "investment intentions of private companies" in the bloc, a senior EU official explained. A White House factsheet said EU countries -- which recently pledged to ramp up defence spending within NATO -- "agreed to purchase significant amounts of US military equipment." But the EU official said arms procurement was not "agreed or discussed" -- suggesting Washington was alluding to purchases expected independently from the trade agreement. Will any goods be tarifffree? The White House said the deal involved 'the elimination of all EU tariffs on US industrial goods'. Brussels meanwhile said the leaders had agreed bilateral tariff exemptions for key goods -- with the exact list still to be finalised. The EU official said the bloc was ready to lower levies to zero percent on US cars, machinery products, some chemicals and items linked to fertilisers -- which could be an alternative to Russian sources. In exchange, the official said, Washington was expected to eliminate levies on European aircraft, certain medical devices and some pharmaceuticals for which the United States depends on EU imports. Discussions are ongoing about European alcohol exports becoming tariff-free -- including wine. The EU official also said the bloc would be willing to do away with levies on certain US products taxed at very low rates -- in the order of one to four percent -- including nuts, lobster, fish, dairy and pet food. Are there sector-specific terms? Semiconductors and pharmaceuticals are currently the target of US trade probes that could see Trump impose massive levies. Under the deal struck Sunday, the EU says the United States has agreed that whatever the outcome of those investigations, those sectors will not be taxed at more than 15 percent. The White House said pharmaceuticals and semiconductors would indeed be taxed at that rate. Protecting pharmaceuticals -- a major EU export to the United States and a critical sector for Ireland -- was a priority in the bloc's negotiations. Steel was another key area -- which along with copper and aluminium is currently facing a 50-percent US tariff. The White House said those sectoral tariffs 'will remain unchanged' but that it would 'discuss securing supply chains for these products' with the EU. But the EU official said the understanding was a certain quota of steel -- based on historic levels -- would enter the United States before the 50-percent levy kicks in. What happens next? The deal needs to be approved by EU states, under a process to be determined by what legal form the final agreement takes, the EU official said. On the US side, the majority of the undertakings are expected to be carried out by executive order. The EU had prepared a $109-billion retaliation package against US goods, which was due to take effect from August 7. Brussels will suspend the measures once Trump publishes his executive order.

US Fed poised to hold off on rate cuts, defying Trump pressure
US Fed poised to hold off on rate cuts, defying Trump pressure

Daily Tribune

time17 hours ago

  • Daily Tribune

US Fed poised to hold off on rate cuts, defying Trump pressure

The US central bank is widely expected to hold off slashing interest rates again at its upcoming meeting, as officials gather under the cloud of an intensifying pressure campaign by President Donald Trump. Policymakers at the independent Federal Reserve have kept the benchmark lending rate steady since the start of the year as they monitor how Trump's sweeping tariffs are impacting the world's biggest economy. With Trump's on-again, offagain tariff approach -- and the levies' lagged effects on inflation -- Fed officials want to see economic data from this summer to gauge how prices are being affected. When mulling changes to interest rates, the central bank -- which meets on Tuesday and Wednesday -- seeks a balance between reining in inflation and the health of the jobs market. But the bank's data-dependent approach has enraged the Republican president, who has repeatedly criticized Fed Chair Jerome Powell for not slashing rates further, calling him a 'numbskull' and 'moron.' Most recently, Trump signaled he could use the Fed's $2.5 billion renovation project as an avenue to oust Powell, before backing off and saying that would be unlikely. Trump visited the Fed construction site on Thursday, making a tense appearance with Powell in which the Fed chair disputed Trump's characterization of the total cost of the refurbishment in front of the cameras. But economists expect the Fed to look past the political pressure at its policy meeting. 'We're just now beginning to see the evidence of tariffs' impact on inflation,' said Ryan Sweet, chief US economist at Oxford Economics. 'We're going to see it (too) in July and August, and we think that's going to give the Fed reason to remain on the sidelines,' he told AFP. 'Trial balloon' Since returning to the presidency in January, Trump has imposed a 10% tariff on goods from almost all countries, as well as steeper rates on steel, aluminum and autos. The effect on inflation has so far been limited, prompting the US leader to use this as grounds for calling for interest rates to be lowered by three percentage points. Currently, the benchmark lending rate stands at a range between 4.25% and 4.50%. Trump also argues that lower rates would save the government money on interest payments, and floated the idea of firing Powell. The comments roiled financial markets. 'Powell can see that the administration floated this trial balloon' of ousting him before walking it back on the market's reaction, Sweet said. 'It showed that markets value an independent central bank,' the Oxford Economics analyst added, anticipating Powell will be instead more influenced by labor market concerns. Powell's term as Fed chair ends in May 2026. Jobs market 'fissures' Analysts expect to see a couple of members break ranks if the Fed's rate-setting committee decides for a fifth straight meeting to keep interest rates unchanged. Sweet cautioned that some observers may spin dissents as pushback on Powell but argued this is not necessarily the case. 'It's not out-of-line or unusual to see, at times when there's a high degree of uncertainty, or maybe a turning point in policy, that you get one or two people dissenting,' said Nationwide chief economist Kathy Bostjancic. Fed Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman have both signaled openness to rate cuts as early as July, meaning their disagreement with a decision to hold rates steady would not surprise markets. Bostjancic said that too many dissents could be 'eyebrow-raising,' and lead some to question if Powell is losing control of the board, but added: 'I don't anticipate that to be the case.' For Sweet, 'the big wild card is the labor market.' There has been weakness in the private sector, while the hiring rate has been below average and the number of permanent job losers is rising. 'There are some fissures in the labor market, but they haven't turned into fault lines yet,' Sweet said. If the labor market suddenly weakened, he said he would expect the Fed to start cutting interest rates sooner.

Houthis To Escalate Attacks On Ships Linked To Firms
Houthis To Escalate Attacks On Ships Linked To Firms

Gulf Insider

time18 hours ago

  • Gulf Insider

Houthis To Escalate Attacks On Ships Linked To Firms

Just last week, Prime Minister Netanyahu recalled his Israeli negotiating team from Doha – which is certainly not a first instance – as talks broke down, also after the US representative mentioned dissatisfaction with Hamas' position. On Sunday night, the Houthis of Yemen declared it will target merchant ships belonging to any company that does business with Israeli ports. This part is nothing new, but what is a renewed escalation is that the Houthis statement made clear this will be regardless of nationality as part of the next phase of its operations. This Red Sea war has been going for a long time, and has featured direct ballistic missile attacks on Tel Aviv – which have been waning in the last weeks, but the resulting shipping disruptions have wreaked havoc on a vital global transit point through which an estimated $1 trillion in goods usually passes each year. The Houthi statement said they had 'decided to escalate their military support operations and begin implementing the fourth phase of the naval blockade' against Israel. This also as international reports have acknowledged rising famine and deaths from hunger in the Gaza Strip. The fresh statement warns the Iran-backed militants would target 'all ships belonging to any company that deals with the ports of the Israeli enemy, regardless of the nationality of that company, and in any location within the reach of our armed forces.' This is regardless of any final destination, it warned. International companies and governments must pressure Israel to stop the war in Gaza and lift its blockade on the Palestinian territory 'if they want to avoid this escalation' – the statement warns further. Escalation has indeed been on the rise, despite months ago Trump ordering the US Navy to wind down and withdraw from its war with the Houthis, while pressuring the Europeans to take a more active posture in the theatre. Already in July the Houthis have attacked and sank two Liberian-flagged, Greek-owned bulk carriers – identified as the Magic Seas and the Eternity C. The Houthis have boasted of these assaults by issuing high-production quality films detailing the operations, which even involved boarding the vessels. These were deadly attacks and have resulted in four crew members dead and 11 more taken captive – though thankfully 22 crew members of the Magic Seas were able to be rescued. As for the latest round of failed negotiations hosted in Qatar, reports indicated that Hamas offered to trade 10 Israeli hostages for 200 Palestinian prisoners serving life sentences. Israel reportedly pushed for a 2-kilometer demilitarized buffer inside the Strip, while Hamas is said to have countered with one kilometer. All of this may be moot from the start, given much more land mass has already been utterly destroyed, and Israel is believed to be paving the way for eventual new settlements. The fiery and loudly-issued new threat against Red Sea shipping: ❗️ Yemen announces new military ESCALATION Will target ALL ships tied to companies working with Israeli ports in ANY location 'Regardless of nationality… regardless of destination' Global firms WARNED: cut ties with Israel or face consequences — Houthi spoxvia RT — Tony (@Cyberspec1) July 27, 2025 The Israeli government has meanwhile opted for a military solution, and the complete eradication of Gaza. From the start Hamas has insisted on the removal of all Israeli military troops, which has been a non-starter for Netanyahu. By and large, Washington has stuck by its closest Mideast ally, amid growing international criticisms linked to tens of thousands of civilian deaths, and a nightmarish humanitarian crisis. President Trump on Monday in comments from Scotland issued a rare admission that Gazans are indeed starving, and that we need to 'feed the kids'. Also read: Houthis Again Target Tel Aviv, As Israelis Plead For More US Raids On Yemen

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store