Japan marks 80th anniversary of Hiroshima, Nagasaki bombings
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CNA
33 minutes ago
- CNA
Trump tariffs split Japan Inc as Toyota cuts forecast while Sony, Honda raise
TOKYO :U.S. President Donald Trump's tariffs are cleaving Japan Inc, as some big exporters like Toyota Motor slash their profit forecasts while Sony and Honda are among those saying the impact will be less than they had feared. As Trump's levies on global shipments into the U.S. kicked in on Thursday, Japan's top companies offered a mixed picture of the impact of his signature economic policy and of the stronger yen on his country's fifth-largest trading partner. Uncertainty over the tariffs and their erratic implementation have unnerved companies globally as governments work feverishly to strike deals and avert a crisis for their big exporters. While glimmers of optimism have emerged for Japanese companies, the outlook remains overshadowed by uncertainty over when Trump will lower his tariffs on Japanese automobiles and new questions about duties on pharmaceuticals and semiconductors. A Trump broadside on semiconductors, with 100 per cent tariffs on some chip imports to the U.S., hit Japanese chip supply-chain firms on Thursday, while shares of companies elsewhere with U.S. expansion plans jumped. Tokyo urged Washington on Thursday to swiftly implement last month's bilateral agreement lowering tariffs on U.S. imports of Japanese cars to 15 per cent from the 27.5 per cent in total levies in place since Trump raised tariffs in April. Two weeks after Trump announced the deal, which he said included $550 billion in Japanese investment and loans in the U.S., Tokyo is scrambling to clarify specifics, complicating business planning for the nation's biggest firms. 'DIFFICULT TO PREDICT' "It's honestly very difficult for us to predict what will happen regarding the market environment," Takanori Azuma, head of finance for Toyota, the world's biggest automaker, said on Thursday. Toyota cut its operating-profit forecast for the business year to March by 16 per cent to 1.4 trillion yen ($9.5 billion), citing the tariffs and the yen. The company will keep making cars for U.S. customers regardless of any impact from the tariffs, Azuma told a briefing on the business results. 'Even at this point, incentives are very low and inventory is limited, so many customers are waiting. That's true not only in the U.S., but also in Japan." Japan's carmakers are among the hardest hit in the trade war as they resist raising prices, squeezing their profit margins. In contrast to Toyota, Sony raised its full-year profit forecast by 4 per cent to 1.33 trillion yen ($9 billion), with the impact from U.S. tariffs now expected to be 70 billion yen, down from the 100 billion yen it forecast in May. Subaru Corp said the tariff impact on its vehicles has been reduced but remains significant. MADE IN USA EXEMPTION Toyota shares fell 1.5 per cent, while Sony jumped 4.1 per cent and Subaru rose 2.6 per cent. Honda on Wednesday cut its expected tariff impact by 31 per cent to 450 billion yen but said "there are still many unknowns". On chips, Trump offered a big exemption: the 100 per cent tariff will not apply to companies that manufacture in the U.S. or have committed to do so. While Japan is the largest foreign investor in the United States at $819 billion at the end of 2024, according to U.S. government data, its chip industry has shied away from making big U.S. investments. Shares of Japan chip-making equipment maker Tokyo Electron fell 2.7 per cent and chip-testing equipment maker Advantest dropped nearly 1 per cent on Thursday. Chipmakers with big U.S. expansion plans, however, jumped, with Taiwan's TSMC up 5 per cent and South Korea's Samsung rising 2.5 per cent. Japan has said the U.S. agreed not to give it a worse tariff rate than other countries on semiconductors and pharmaceuticals. Tokyo ran a bilateral trade surplus of nearly $70 billion last year on U.S.-Japan trade of nearly $230 billion. ($1 = 147.3100 yen)
Straits Times
2 hours ago
- Straits Times
Trump says likely to meet Putin ‘very soon'
Sign up now: Get ST's newsletters delivered to your inbox US President Donald Trump has given Russia until Aug 8 to make progress towards peace or face new penalties. WASHINGTON - Mr Donald Trump said on Aug 6 he could meet Mr Vladimir Putin 'very soon', following what the US president described as highly productive talks in Moscow between his special envoy and the Russian leader. The potential summit was discussed in a call between Mr Trump and Ukrainian leader Volodymyr Zelensky that, according to a senior source in Kyiv, included Nato Secretary-General Mark Rutte and the leaders of Britain, Germany and Finland. 'There's a good chance that there will be a meeting very soon,' Mr Trump told reporters at the White House, when asked when he would meet the Ukrainian and Russian leaders. He gave no indication where the meeting might take place. It would be the first US-Russia leadership summit since former president Joe Biden met with his counterpart in Geneva in June 2021. The New York Times and CNN, citing people familar with the plan, said Mr Trump plans to sit down with Mr Putin as early as next week, and then wants a three-way meeting with the Russian leader and Mr Zelensky. 'It seems that Russia is now more inclined to agree to a ceasefire; the pressure on them is working. But the main thing is that they do not deceive us or the United States in the details,' Mr Zelensky said on the evening of Aug 6. Mr Trump's phone call with Mr Zelensky came after US envoy Steve Witkoff met Russian leadership in Moscow earlier in the day for talks described by the Kremlin as 'productive' – with Mr Trump's deadline looming to impose fresh sanctions over Russia's war in Ukraine. Top stories Swipe. Select. Stay informed. Singapore Some ageing condos in Singapore struggle with failing infrastructure, inadequate sinking funds Singapore Wastewater overflow in Bedok and Chai Chee due to choked sewer at BTO worksite: PUB Singapore Teen's love of dance powers her through cancer to perform at NDP2025 Asia Kpods, zombie oil or etomidate? A new name may help Hong Kong curb its youth drug crisis Singapore Man handed three vaping-related charges including importing 3,080 pods Business DBS shares hit record high after Q2 profit beats forecast on strong wealth fees, trading income World Trump's 100% semiconductor tariffs may hit chipmakers in Singapore, other SEA nations World Trump eyes 100% chips tariff, but 0% for US investors like Apple 'Great progress was made!' Mr Trump wrote on his Truth Social platform, adding that afterwards he had briefed some European allies. 'Everyone agrees this War must come to a close, and we will work towards that in the days and weeks to come,' he said. Minutes later, however, a senior US official said that 'secondary sanctions' were still expected to be implemented in two days' time. US Secretary of State Marco Rubio said Mr Witkoff was returning with a ceasefire proposal from Moscow that would have to be discussed with Ukraine and Washington's European allies. He also cast caution on the timeline for a Trump-Putin meeting, saying there was 'a lot of work ahead,' adding it could be 'weeks maybe'. Long process Mr Trump, who had boasted he could end the conflict within 24 hours of taking office, has given Russia until Aug 8 to make progress towards peace or face new penalties. Three rounds of Russia-Ukraine talks in Istanbul have failed to make headway on a ceasefire, with the two sides far apart in their demands. Russia has escalated drone and missile attacks against its pro-Western neighbour to a record high and accelerated its advance on the ground. 'A quite useful and constructive conversation took place,' Mr Putin's aide, Mr Yuri Ushakov, told journalists, including AFP, after the three-hour meeting with Mr Witkoff. The two men exchanged 'signals' on their positions, Mr Ushakov said, without elaborating. Mr Zelensky confirmed his call with Mr Trump and confirmed European leaders had taken part, although he didn't name them. Sanctions threat Mr Trump has voiced increasing frustration with Mr Putin in recent weeks over Russia's unrelenting offensive. The White House has not officially outlined what action it would take against Russia, but Mr Trump has previously threatened to impose 'secondary tariffs' targeting Russia's key trade partners, such as China and India. On Aug 6, Mr Trump ordered steeper tariffs on Indian goods over New Delhi's continued purchase of Russian oil. Without explicitly naming Mr Trump, the Kremlin on Aug 5 slammed 'threats' to hike tariffs on Russia's trading partners as 'illegitimate.' Russia's full-scale invasion of Ukraine since February 2022 has killed tens of thousands of people, destroyed swathes of the country and forced millions to flee their homes. Moscow has demanded that Ukraine cede more territory and renounce Western support if it wants the fighting to stop. Kyiv is calling for an immediate ceasefire, and Mr Zelensky last week urged his allies to push for 'regime change' in Moscow. Nuclear rhetoric The Witkoff visit came as Moscow-Washington tensions are running high. Mr Trump said he had ordered two nuclear submarines to be moved following an online row with former Russian president Dmitry Medvedev, and that they were now 'in the region.' Moscow then said that it was ending a self-imposed moratorium on nuclear-capable intermediate-range missiles, suggesting that it could deploy such weapons in response to what it alleged were similar US deployments within striking distance of Russia. AFP
Straits Times
4 hours ago
- Straits Times
Trump's higher tariff rates hit goods from major US trading partners
Sign up now: Get ST's newsletters delivered to your inbox Mr Trump has touted the vast increase in federal revenues from his import tax collections. President Donald Trump's higher tariff rates of 10 per cent to 50 per cent on dozens of trading partners kicked in on Aug 7, testing his strategy for shrinking US trade deficits without massive disruptions to global supply chains, higher inflation and stiff retaliation from trading partners. US Customs and Border Protection agency began collecting the higher tariffs at 12.01am (12.01pm Singapore time) after weeks of suspense over Mr Trump's final tariff rates and frantic negotiations with major trading partners that sought to lower them. Goods loaded onto US-bound vessels and in transit before the midnight deadline can enter at lower prior tariff rates before Oct 5, according to a CBP notice to shippers issued this week. Imports from many countries had previously been subject to a baseline 10 per cent import duty after Mr Trump paused higher rates announced in early April. But since then, Mr Trump has frequently modified his tariff plan, slapping some countries with much higher rates, including 50 per cent for goods from Brazil, 39 per cent from Switzerland, 35 per cent from Canada and 25 per cent from India. He announced a separate 25 per cent tariff on Indian goods on Aug 6 to be imposed in 21 days over the South Asian country's purchases of Russian oil. Ahead of the deadline, Mr Trump heralded the 'billions of dollars' that will flow into the US, largely from countries that he said had taken advantage of the United States. 'THE ONLY THING THAT CAN STOP AMERICA'S GREATNESS WOULD BE A RADICAL LEFT COURT THAT WANTS TO SEE OUR COUNTRY FAIL!' Mr Trump said on Truth Social. Eight major trading partners accounting for about 40 per cent of US trade flows have reached framework deals for trade and investment concessions with Mr Trump, including the European Union, Japan and South Korea, reducing their base tariff rates to 15 per cent. Britain won a 10 per cent rate, while Vietnam, Indonesia, Pakistan and the Philippines secured rate reductions to 19 per cent or 20 per cent. 'For those countries, it's less bad news,' said Mr William Reinsch, a senior fellow and trade expert at the Centre for Strategic and International Studies in Washington. 'There'll be some supply chain rearrangement. There'll be a new equilibrium. Prices here will go up, but it'll take a while for that to show up in a major way,' Mr Reinsch said. Countries with punishingly high duties, such as India and Canada, 'will continue to scramble around trying to fix this', he added. Mr Trump's order has specified that any goods determined to have been trans-shipped from a third country to evade higher US tariffs will be subject to an additional 40 per cent import duty, but his administration has released few details on how these goods would be identified or the provision enforced. Mr Trump's July 31 tariff order imposed duties above 10 per cent on 67 trading partners, while the rate was kept at 10 per cent for those not listed. These import taxes are one part of a multilayered tariff strategy that includes national security-based sectoral tariffs on semiconductors, pharmaceuticals, autos, steel, aluminium, copper, lumber and other goods. Mr Trump said on Aug 6 that the microchip duties could reach 100 per cent. China is on a separate tariff track and will face a potential tariff increase on Aug 12 unless Mr Trump approves an extension of a prior truce after talks last week in Sweden. He has said he may impose additional tariffs over China's purchases of Russian oil as he seeks to pressure Moscow into ending its war in Ukraine. Financial markets largely shrugged off the new tariffs, with stock markets in Asia at or near record highs while the dollar dipped slightly. Revenues, price hikes Mr Trump has touted the vast increase in federal revenues from his import tax collections, which are ultimately paid by companies importing the goods and consumers of end products. US Treasury Secretary Scott Bessent has said that US tariff revenues could top US$300 billion (S$385 billion) a year. The move will drive average US tariff rates to around 20 per cent, the highest in a century and up from 2.5 per cent when Mr Trump took office in January, the Atlantic Institute estimates. Commerce Department data released last week showed more evidence that tariffs began driving up US prices in June, including for home furnishings and durable household equipment, recreational goods and motor vehicles. Costs from Mr Trump's tariff war are mounting for a wide swath of companies, including bellwethers Caterpillar, Marriott, Molson Coors and Yum Brands. All told, global companies that have reported earnings so far this quarter are looking at a hit of around US$15 billion to profits in 2025, Reuters' global tariff tracker shows. REUTERS
