Who's paying for Trump tariffs? Businesses, so far
WASHINGTON -- Lower-than-expected U.S. inflation readings for May suggest that President Donald Trump's tariffs have yet to really hit American consumers, with domestic and foreign companies initially bearing the costs.
The U.S. began raising tariffs in February, starting with imports from China. Additional duties on steel were imposed in March. April brought levies on autos and sweeping, since-paused "reciprocal" tariffs on goods from dozens of countries.
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Japan Times
an hour ago
- Japan Times
'Golden share' to help U.S. Steel keep name and prevent relocation
The so-called golden share to be held by the U.S. government in United States Steel will prevent the company from relocating its headquarters from Pittsburgh or changing its name without the consent of the U.S. president, Commerce Secretary Howard Lutnick said Saturday. Tokyo-based Nippon Steel plans to acquire all common shares in U.S. Steel while issuing a golden share in the U.S. company to the American government. Lutnick said that the golden share will also prevent Nippon Steel from reducing, waiving or delaying its $14 billion investment into U.S. Steel, transferring production or jobs outside the United States and closing or idling plants before certain time frames without the consent of the U.S. president, Lutnick said. The golden share "has powerful terms that directly benefit and protect America, Pennsylvania, the great steelworkers of U.S. Steel, and U.S. manufacturers that will have massively expanded access to domestically produced steel," Lutnick said in a post on X. U.S. President Donald Trump signed an executive order on Friday that says Nippon Steel's acquisition of U.S. Steel will be approved on the condition that risks to national security are mitigated. Based on the order, the two steelmakers concluded a national security agreement with the U.S. government that calls for it to receive a golden share.
Yomiuri Shimbun
an hour ago
- Yomiuri Shimbun
Approval of Acquisition by Nippon Steel: Deal Opens New Doors for Japan-U.S. Cooperation
A major industry restructuring, which had been buffeted by U.S. politics, is finally set to happen. This deal is likely to make a mark on industrial history and become a new symbol of cooperation between Japan and the United States. The constructive decision by the U.S. government is laudable. In connection with Nippon Steel Corp.'s plan to purchase U.S. steel giant United States Steel Corp., Nippon Steel announced that U.S. President Donald Trump has 'approved' the companies' partnership. With that approval, Nippon Steel said it is set to complete the buyout by acquiring 100% of the common stock in U.S. Steel for $14.1 billion (about ¥2 trillion) and realize a deal that will make the U.S. company a wholly owned subsidiary. The companies have signed a National Security Agreement, which is intended to dispel security concerns, with the U.S. government. Under that pact, U.S. Steel will issue to the U.S. government a 'golden share' that allows Washington to veto key decisions even though it holds a minority stake. Steel is the foundation of manufacturing, used in a wide range of products such as automobiles, infrastructure and military equipment. China, which has become a 'factory for the world,' has overproduced products, including steel, and launched an export offensive with lower prices. Under such circumstances, it is important for Japan and the United States to deepen their cooperation from the standpoint of economic security. This deal can be said to have resulted in the best possible combination of steelmakers to cooperate on policy toward China. U.S. Steel is struggling with aging facilities, and its crude steel production has fallen to below 20th in the world. In contrast, Nippon Steel, the world's fourth-largest steelmaker, boasts advanced technology in high-strength steel sheets for automobiles and thick steel plates for shipbuilding, among other products. If Nippon Steel provides U.S. Steel with technology and funding, doing so could help the U.S. company regain its competitiveness. It is also highly significant for Nippon Steel to establish a foothold in the United States, which is a massive market. U.S. Steel was once the world's largest steel company and a prestigious firm that represented the United States' prosperity. In some ways, it is understandable that there was resistance among U.S. citizens to the acquisition of such a firm by a Japanese company. Under these political circumstances, Trump initially called for blocking the planned acquisition, and former U.S. President Joe Biden also issued an order to halt the deal. Trump has consistently emphasized that U.S. Steel is an American company. It is groundbreaking that he has shown understanding for overcoming this matter by acquiring the golden share. Nippon Steel has promised to invest $11 billion by 2028. If U.S. Steel continues to grow, there may be no need for the U.S. government to exercise the rights of the golden share. Trump has imposed high tariffs indiscriminately with an aim of bringing manufacturing back to the United States. However, attracting investment and securing jobs in this way is the best possible approach that should be pursued. (From The Yomiuri Shimbun, June 15, 2025)
Yomiuri Shimbun
2 hours ago
- Yomiuri Shimbun
50 Years of Summits: Can G7 Countries Play Role in Ensuring Global Stability?
The Group of Seven advanced countries, which share values such as democracy and the rule of law, have taken the lead in shaping the international order. Disarray among the G7 countries could destabilize the world further. It is important to end the aggression and fighting that is spreading around the world. To that end, the G7 members must first unite. A G7 summit is scheduled to be held in Kananaskis, western Canada, from Sunday to Tuesday. This year, the group will mark 50 years since its first summit, at which the leaders of six countries — Japan, the United States and European nations — met in 1975. Canada was not included at that time. Initially, the agenda was how to deal with economic crises, such as the oil shock and currency issues. At Japan's suggestion, the G7 countries decided to hold a summit every year, and topics have widened from economic issues to also include politics and security. Fifty years ago, the member countries collectively accounted for 60% of the global gross domestic product, but with the rise of China and other countries, the figure currently stands at 40%. After the collapse of Lehman Brothers, the Group of 20 major economies began to play an active role. Many people have noted the decline in the G7's presence. However, the G20, which includes China, Russia and India as members, often faces conflicting national interests, so it is an insufficient framework for resolving issues. With the U.N. Security Council also falling into disarray, the G7 must play a role in restoring world peace and stability. A source of concern is the presence of U.S. President Donald Trump, who will be returning to the G7 summits. At one point, Trump leaned toward Russia, which has continued its aggression against Ukraine. He was involved in ceasefire talks, but his attempt did not go as intended. Recently, he has begun to distance the United States from Russia. European and other countries have condemned Israel's attacks that have caused many casualties in the Palestinian territory of the Gaza Strip, but the United States has continued to provide military support to Israel. In addition, Israel would not have been able to conduct airstrikes on Iran if the Trump administration had opposed them. Although a rift has widened between the United States and European and other countries, it is unlikely to be possible to resolve various conflicts without the involvement of the United States, which has overwhelming military power. Washington's high tariff policy is also causing discord within the G7. Canada, which currently holds the G7 presidency, reportedly intends to forgo issuing a leaders' joint statement, which typically summarizes the outcomes of the summit, and instead plans to compile separate documents of agreement on individual issues such as the economy and security. This approach appears to be aimed at allowing the G7 countries to reach agreements as much as possible by seeking common ground with the United States on individual issues. It is difficult to say that the administration of Prime Minister Shigeru Ishiba has been actively engaged with providing support to Ukraine and resolving conflicts in the Middle East. At the G7 summit, Ishiba should make clear Japan's stance to contribute to restoring peace. (From The Yomiuri Shimbun, June 15, 2025)
