CNA938 Rewind - Near 6-fold rise in prepayment losses for beauty consumers in first half of 2025
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36 minutes ago
- CNA
Japan Inc split on Trump tariffs as automakers brace for deeper hit
TOKYO: US President Donald Trump's tariffs are cleaving Japan Inc, with some major exporters like Toyota Motor slashing profit forecasts, while others such as Sony and Honda say the impact may be less severe than initially feared. As Trump's levies on global shipments into the United States took effect on Thursday (August 6), Japan's top companies offered a mixed picture of how the tariffs, and a stronger yen are affecting America's fifth-largest trading partner. Uncertainty surrounding the tariffs and their erratic implementation has rattled companies worldwide, as governments scramble to strike deals and shield major exporters from further disruption. While some glimmers of optimism have emerged, Japanese firms remain uneasy about when Trump might lower tariffs on Japanese automobiles and whether new duties will target pharmaceuticals and semiconductors. AUTOMAKERS UNDER PRESSURE A Trump move targeting semiconductors with 100 per cent tariffs on some chip imports hit Japanese supply-chain firms on Thursday, even as shares of other companies with US expansion plans rose. Tokyo on Thursday urged Washington to swiftly implement last month's bilateral agreement to reduce US tariffs on Japanese car imports to 15 per cent, down from the 27.5 per cent in place since Trump's April tariff hike. Two weeks after Trump announced the deal, which he said includes US$550 billion in Japanese investments and loans, Tokyo is still working to clarify its terms, adding further uncertainty for corporate planners. 'It's honestly very difficult for us to predict what will happen regarding the market environment,' said Takanori Azuma, head of finance at Toyota, the world's largest automaker. Toyota cut its operating profit forecast for the business year ending in March by 16 per cent to 3.2 trillion yen (US$21.7 billion), citing the stronger yen and tariff-related costs. Despite the impact, Azuma said the company would continue making cars for US customers. 'Even at this point, incentives are very low and inventory is limited, so many customers are waiting. That's true not only in the US, but also in Japan,' he said. Japanese carmakers have been among the hardest hit by the trade dispute, as they try to avoid raising prices and instead absorb the cost increases in their margins. CHIPMAKERS AND EXEMPTIONS In contrast, Sony raised its full-year profit forecast by 4 per cent to 1.33 trillion yen (US$9 billion), saying the estimated tariff impact had dropped to 70 billion yen, down from 100 billion yen previously. Subaru said the tariff impact on its vehicles had also been reduced but warned it remained significant. Honda on Wednesday (August 5) cut its projected tariff impact by 31 per cent to 450 billion yen, but said 'there are still many unknowns'. As for chips, Trump offered a key exemption: the 100 per cent tariff would not apply to companies manufacturing in the US or committed to doing so. While Japan is the largest foreign investor in the United States — with holdings worth US$819 billion at the end of 2024, according to US government data — its semiconductor industry has been reluctant to commit to large-scale US manufacturing. Shares of Japanese chip equipment maker Tokyo Electron fell 2.7 per cent on Thursday, while testing equipment firm Advantest slipped nearly 1 per cent. By contrast, chipmakers with large US expansion plans posted gains, with Taiwan's TSMC up 5 per cent and South Korea's Samsung rising 2.5 per cent. TRADE BALANCE AND CONCERNS
CNA
an hour ago
- CNA
Asia First - Thu 7 Aug 2025
02:29:49 Min From the opening bell across markets in Southeast Asia and China, to the biggest business interviews and top financial stories, tune in to Asia First to kick-start your business day.
CNA
2 hours ago
- CNA
Longer alcohol trading hours, new establishments among moves in pilot to revitalise Singapore River
Authorities are relaxing measures at several areas around the Singapore River, in a pilot to revitalise the precinct. Among the measures - licensed nightlife establishments at Boat Quay and Clarke Quay will be able to apply for a longer window to sell alcohol on Thursdays and Fridays. It is a move the nightlife industry has welcomed. Danny Loong, President of the Singapore Nightlife Business Association, shares more on how the revitalisation will help nightlife operators.
