
US treasury secretary says Japan trade deal ‘remains possible'
TOKYO : US treasury secretary Scott Bessent said Friday that a trade deal with Japan remained possible, following talks in Tokyo ahead of the looming Aug 1 imposition of new tariffs.
'A good deal is more important than a rushed deal, and a mutually beneficial trade agreement between the US and Japan remains within the realm of possibility,' Bessent said on X.
'I look forward to continuing formal talks in the future,' Bessent said following discussions with Japanese Prime Minister Shigeru Ishiba and trade envoy Ryosei Akazawa.
US President Donald Trump imposed tariffs on imports of Japanese cars, steel and aluminium earlier this year.
Trump sent letters to Japan and a string of other countries earlier this month informing them that higher import tariffs will kick in on Aug 1 unless they reach a deal with the US.
For Japanese imports, the additional tariff was set at 25%.
It was the second time the US president has set a deadline after he postponed tariffs on almost all countries in April for 90 days.
Recent weak export data, including a sharp drop in vehicle exports to the US, raised fears that Japan, the world's fourth-largest economy, could tip into a technical recession.
Trump this week poured cold water on the prospects of an agreement, saying Japan won't 'open up their country'.
Earlier this month, Ishiba, who faces tough upper house elections on Sunday that could end his premiership, said: 'We will not easily compromise.'
Hashtags

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


New Straits Times
19 minutes ago
- New Straits Times
Malaysia, Thailand, Indonesia emerge as launchpads for China's EV giants
KUALA LUMPUR: Automotive investments surged this quarter, led by a sharpened focus on the electric vehicle (EV) supply chain and Asean's rise as a key hub for global automakers, according to BMI, a unit of Fitch Solutions. BMI said the most notable trend is the continued expansion of Chinese automakers such as Geely, GAC, and Changan, who are using the Asean region, particularly Thailand, Malaysia, and Indonesia, as key launchpads for their global ambitions. "Geely has announced a landmark investment in Malaysia to transform Tanjung Malim into a major automotive hub, while also pursuing collaborations in Indonesia aimed at developing a homegrown EV by 2026. "GAC and Changan are similarly increasing their presence, with Changan leveraging its manufacturing footprint in Malaysia to support regional growth and GAC introducing flagship models and supply chain capabilities at regional expos," it said in a recent note. According to BMI, the EV supply chain itself is seeing robust investment, underpinned by a drive for localisation and electrification. It added that Thailand is experiencing a surge in EV demand, with sales expected to jump over 40 per cent in 2025, supported by government incentives and the establishment of domestic battery manufacturing facilities like Amita Technology's gigafactory. In Malaysia, BMI said Geely's large-scale commitment is attracting further supply chain investments, reinforcing its position as a regional automotive manufacturing powerhouse. However, it noted that the most significant announcement of the quarter in terms of project value is Contemporary Amperex Technology Co Ltd's investment in Indonesia. "This major gigafactory project is finally taking shape and represents another example of mainland Chinese companies leveraging Asean as a launch platform. "The project, known as the Indonesia Battery Integration Project, aims to cover the entire battery value chain—from nickel mining and processing to battery materials, manufacturing, and recycling—within the FHT Industrial complex," it said. Meanwhile, BMI reported tracking 30 new automotive manufacturing investments across Asia in the first quarter of 2025 (1Q25), with a total value of US$10.6 billion. This represents a significant decrease in the number of projects tracked from 41 in the previous quarter. BMI noted that the total investment value for projects with available information was significantly higher in 1Q24 at US$54.6 billion and also 4Q24 at US$54.6 billion. Throughout 2Q25, BMI said it saw a continued increase in the number of EV-related investments, with a number of new projects announced in the growing EV supply chain in Asian emerging markets such as India, Indonesia, Thailand and mainland China. Nevertheless, BMI said the tariffs announced by the United States President Donald Trump on March 26, have had a negative impact on certainty investment patterns in Asia, especially for the automotive sector. "Reflecting this, the number of investments identified in Asia fell sharply from 41 in 1Q25 to just 30 in 2Q25. "These tariffs, aimed at protecting US national security and manufacturing, have led companies to reassess their global strategies, with Japan emerging as the most affected market," it said. BMI also noted that both Nissan's and Toyota's strategic adjustments reflect the broader recalibration among global automakers as they respond to new tariff regimes and intensifying competition in the EV market.


New Straits Times
19 minutes ago
- New Straits Times
Trump says US will sell 'so much' beef to Australia
WASHINGTON/CANBERRA: The United States will sell "so much" beef to Australia, US President Donald Trump said on Thursday after Canberra relaxed import restrictions, adding that other countries that refused US beef products were on notice. Australia on Thursday said it would loosen biosecurity rules for US beef, something analysts predicted would not significantly increase US shipments because Australia is a major beef producer and exporter whose prices are much lower. "We are going to sell so much to Australia because this is undeniable and irrefutable Proof that US Beef is the Safest and Best in the entire World," Trump said in a post on Truth Social. "The other Countries that refuse our magnificent Beef are ON NOTICE," the post continued. Trump has attempted to renegotiate trade deals with numerous countries he says have taken advantage of the United States, a characterisation many economists dispute. "For decades, Australia imposed unjustified barriers on US beef," US Trade Representative Jamieson Greer said in a statement, calling Australia's decision a "major milestone in lowering trade barriers and securing market access for US farmers and ranchers." Australia is not a significant importer of beef but the United States is, and a production slump is forcing it to step up purchases. Last year, Australia shipped almost 400,000 metric tons of beef worth US$2.9 billion to the United States, with just 269 tons of US product moving the other way. Australian officials say the relaxation of restrictions was not part of any trade negotiations but the result of a years-long assessment of US biosecurity practices. Canberra has restricted US beef imports since 2003 due to concerns about bovine spongiform encephalopathy (BSE), or mad cow disease. Since 2019, it has allowed in meat from animals born, raised and slaughtered in the United States but few suppliers were able to prove that their cattle had not been in Canada and Mexico. On Wednesday, Australia's agriculture ministry said US cattle traceability and control systems had improved enough that Australia could accept beef from cattle born in Canada or Mexico and slaughtered in the United States. The decision has caused some concern in Australia, where biosecurity is seen as essential to prevent diseases and pests from ravaging the farm sector. "We need to know if (the government) is sacrificing our high biosecurity standards just so Prime Minister Anthony Albanese can obtain a meeting with US President Donald Trump," shadow agriculture minister David Littleproud said in a statement. Australia, which imports more from the United States than it exports, faces a 10 per cent across-the-board US tariff, as well as 50 per cent tariffs on steel and aluminium. Trump has also threatened to impose a 200 per cent tariff on pharmaceuticals. Asked whether the change would help achieve a trade deal, Australian Trade Minister Don Farrell said: "I'm not too sure." "We haven't done this in order to entice the Americans into a trade agreement," he said. "We think that they should do that anyway."


The Star
31 minutes ago
- The Star
'#Ishiba Don't quit': unlikely support grows for Japan PM
TOKYO: Japanese Prime Minister Shigeru Ishiba's (pic) future is uncertain but an unlikely campaign for him to stay was growing online this week, including from people who are his natural political opponents. The life raft has emerged since upper house elections on Sunday (July 20) deprived Ishiba's coalition of an upper house majority, months after it suffered a similar disaster in the lower chamber. Despite Ishiba, 68, insisting that he has not discussed his resignation with members of his Liberal Democratic Party (LDP), multiple reports say that it is just a matter of time. Some conservative members of the LDP are collecting signatures to hold a special meeting to discuss a leadership election to oust Ishiba, Fuji TV reported on Friday. One reported signee is Sanae Takaichi, a hardline nationalist and onetime heavy metal drummer who lost a leadership contest to Ishiba in September. Takaichi, 64, would likely run again to lead the party - and become Japan's first woman prime minister if she wins - if Ishiba does depart. The prospect of someone as premier with hawkish views on Japanese history and China has fuelled online calls for the moderate Ishiba to remain in power under the hashtag "#Ishiba Don't quit". Some of the calls came from opposition politicians to the left of the LDP, including even from a Communist Party member of a local ward assembly. Ishiba "is the most reasonable LDP leader in recent memory", LaSalle Ishii, a newly elected lawmaker for the Social Democratic Party, said on X. "If he resigns, a far-right government will be born," the well-known comedian and voice actor said. Taro Yamamoto, the leader of small opposition party Reiwa Shinsengumi, was among the first to voice concern about Ishiba's replacement. "The question is, if he were not to continue, who is going to replace him instead?" he told reporters during a Monday news conference. "His economic policies are no good, but for Ishiba-san to continue, I think it's a safe choice." A rally is also planned for Friday evening in front of the prime minister's office to urge him to stay, although it was uncertain how many would attend. Shortly after the Sunday election, a Kyodo News survey put the approval rating for the Ishiba government at just 22.9 per cent. But in that same poll, 45.8 per cent of the public believed there was no need for him to resign. The LDP has governed almost non-stop since 1955, but voters have been deserting the party, including towards fringe groups like the "Japanese first" Sanseito. Factors include rising prices, notably for rice, falling living standards and anger at corruption scandals within the LDP. The opposition is seen as too fragmented to form an alternative government. But being in a minority in both houses of parliament means Ishiba's coalition needs support from other parties to pass legislation. This comes just as Japan faces multiple challenges including a ballooning social security budget to pay pensions for its rapidly ageing and shrinking population. A new trade deal announced this week with US President Donald Trump will see Japanese imports face a painful 15 per cent tariff, although this was lower than a threatened 25 per cent. "We'll evaluate it every quarter, and if the president is unhappy then they will boomerang back to the 25 per cent tariff rates," US Treasury Secretary Scott Bessent said afterwards. - AFP