Japan records trade deficit as exports suffer from Trump's tariffs
Japan 's exports fell in May as shipments of autos to the U.S. dropped nearly 25% from a year earlier due to higher tariffs imposed by President Donald Trump.
Exports fell 1.7% year-on-year, which was less than the decline analysts had forecast, the Finance Ministry reported Wednesday. Imports sank 7.7%, reflecting weakening domestic demand and worse than the 2% fall recorded in April.
The trade deficit in May was 637.6 billion yen, or $4.4 billion.
Japan has yet to reach a deal with Trump on resolving the tariffs issue, with Prime Minister Shigeru Ishiba saying after he met with the U.S. president at the Group of Seven summit in Canada earlier this week that the two sides were unable to agree on some points.
Trump has imposed a 25% additional tariff on Japanese autos and a 24% tariff on other goods. He recently said the auto tariff may become even higher.
Ishiba has emphasized that Japan is an important ally in a key bilateral defense alliance with Washington and that he is pushing to protect his own country's national interests.
The auto industry is a pillar of Japan's economy, and Japan exports more than a million vehicles to the U.S. a year. Tokyo has repeatedly stressed that automakers like Toyota and Honda produce cars in North America, contributing to the economy and creating jobs.
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Reuters
27 minutes ago
- Reuters
Oklahoma strives to become American hub for critical minerals processing
LAWTON, Oklahoma, June 18 (Reuters) - Nestled beneath Oklahoma's Wichita Mountains sits a two-story warehouse containing the only machine in the United States capable of refining nickel, a crucial energy transition metal now dominated by China. The facility, owned by startup Westwin Elements, aims to help Oklahoma become the epicenter for U.S. critical minerals processing, a sector the country largely abandoned decades ago. The state will have to overcome several obstacles to get there, including a lack of major critical mineral deposits, a weak education system and its location at the center of the United States - far from international shipping lanes. Yet Oklahoma's push into minerals processing marks an unexpected twist in the country's efforts to wean itself off Chinese rivals who have blocked exports. President Donald Trump has said he wants to boost U.S. production of minerals used across the economy. In Oklahoma, the country's only nickel refinery, its largest lithium refinery, two lithium-ion battery recycling plants, a rare earths magnet facility, and several electronic waste collection facilities are under construction or in operation - more than in any other state. They join a Umicore ( opens new tab site that produces germanium crystals for solar panels. An aluminum smelter - the country's first since 1980 - is set to break ground next year at a site bordering an Arkansas River tributary. "I've strategically made a conscious effort to go after some of these new industries that I think are going to be critical," Governor Kevin Stitt, a Republican, told Reuters. "There's money flying into critical minerals from the investment side, so it might as well be located in Oklahoma." Investors and corporate executives say the state's location, lack of mineral deposits, and other detracting factors are outweighed by a string of positives: Oklahoma has railways and highways bisecting the state en route to the three U.S. coasts, a workforce with deep energy experience, state rebates and other financial incentives, a large inland port with access to the Mississippi River watershed, and accommodating regulators. Officials boast on social media that Oklahoma is a "one phone call state," a description meant to evoke what they see as a streamlined regulatory process. Australia-based MLB Industrial, a startup that supplies lithium-ion batteries to the locomotive industry, expanded its business to Oklahoma earlier this year for that very reason. "Other states were looking for a large, established company to invest, rather than a company with a growth profile," said Nathan Leech, MLB's CEO, who moved his family to Oklahoma. "We intend to grow in Oklahoma." A nickel refinery, in particular, has been sought by Washington for years but Chinese market dumping had scared away would-be entrants, said a source familiar with the Trump administration's minerals policy. KaLeigh Long founded Westwin and named it after her desire for the U.S. to shake off Chinese minerals dependence - as she puts it, "The West will win." The firm has built a demonstration facility 85 miles (137 km) south of the state capital that it says can refine 200 metric tons of nickel annually and will expand to produce 34,000 metric tons per year by 2030. If successful, the Westwin facility would refine 10% of America's annual nickel needs, demand projections from Benchmark Mineral Intelligence show, drawing on rock taken from Turkish and Indonesian mines, as well as recycled U.S. batteries. Even as Oklahoma promises state tax rebates and other incentives, Westwin is lobbying Washington not to eliminate a federal production tax credit heavily opposed by Republicans along with other green energy subsidies enacted by former President Joe Biden, as Reuters reported earlier this month. Westwin is in negotiations with the Pentagon for a nickel supply deal that would keep metal inside the United States to make batteries for military drones and other equipment, according to a source familiar with the deliberations. Roughly 220 miles (354 km) northeast, a lithium refinery under construction from Stardust Power (SDST.O), opens new tab aims to produce 50,000 metric tons of the battery metal per year, about a fifth of what the U.S. is expected to need by 2030. Japan's Sumitomo (8053.T), opens new tab signed a preliminary agreement in February to buy up to half of the facility's output. Stardust aims for the plant to filter lithium from brines - something that has yet to happen at commercial scale - and will have roughly the same capacity as Tesla's (TSLA.O), opens new tab refinery under construction in Texas. It will be powered in part by renewable energy; nearly half of the state's electricity is generated by wind turbines. "That was a huge draw," said Roshan Pujari, Stardust's CEO. The company is pushing forward even after rival Albemarle (ALB.N), opens new tab paused plans to build a large U.S. refinery, citing weak lithium prices. "During these down cycles is the best time to be developing, because why do we want prices to be high when we have nothing to sell?" Pujari said. USA Rare Earth (USAR.O), opens new tab, which went public earlier this year, chose Oklahoma over Texas for its rare earths magnet facility given what it felt was the personalized support from Stitt and other officials, said CEO Josh Ballard. Magnets made from rare earths turn electricity into motion for EVs; the U.S. stopped making them in the 1990s. Ballard says the facility is slated to open early next year and initially produce 1,200 metric tons annually, enough magnets to build more than 400,000 EVs. That supply is already highly sought after in the United States since China placed export restrictions on rare earths in April. Ballard said he has been fielding "a lot of phone calls" since April from prospective customers. The company on Tuesday signed a preliminary supply agreement with Moog (MOGa.N), opens new tab for magnets used in AI data centers. "We can do this quickly. It's just a matter of how do we do it, and can the government help be a catalyst?" said Ballard. The company could get a boost from legislation introduced earlier this month by three U.S. senators - including Oklahoma's Markwayne Mullin - that would provide a tax credit for roughly 30% of the cost to manufacture a magnet made from rare earths. Elsewhere, two Oklahoma battery processing facilities - from Green Li-ion and Blue Whale Materials - will break down lithium-ion batteries into copper and other building blocks for new batteries. Natural Evolution, in Tulsa, is spearheading a push to expand electronic waste recycling. Green Li-ion, which has a recycling facility in Atoka - Country music star Reba McEntire's hometown - has held talks with Glencore (GLEN.L), opens new tab as well as Westwin about buying a recycled version of battery scrap known as MHP, or mixed hydroxide precipitate, that can be used to make nickel products, according to two sources familiar with the negotiations. Glencore declined to comment. Most of the country's recycled batteries are exported now to China in the form of black mass, essentially shredded battery parts. Green Li-ion, which is headquartered in Singapore, moved its U.S. operations to Oklahoma given the state's history with oil and gas extraction, skills it sees as complementary to black mass processing. "This state has a lot of chemical engineers," said Kevin Hobbie, the company's senior vice president of operations. Oklahoma's foray into the energy transition hasn't been all smooth sailing. Tesla supplier Panasonic (6752.T), opens new tab in 2022 chose Kansas over Oklahoma for a battery plant after the Sunflower State wooed it with $1 billion in incentives. In January, EV startup Canoo ( opens new tab filed for bankruptcy despite a $1 million state grant and Stitt's commitment for his administration to buy 1,000 of the company's vehicles. Canoo, which had several production facilities in Oklahoma, blamed uncertain demand for its cargo vans. State officials say they are trying to recoup the funds. Stitt said he is not bothered by the bankruptcy. "We're going to keep swinging for the fences," he said. The state's education system has also generated negative headlines, due in part to a battle over low standards that could make it difficult to convince high-tech talent and their families to relocate to Oklahoma. The state's pre-kindergarten through twelfth grade educational system, for instance, is ranked 48th out of the 50 U.S. states by U.S. News and World Report, and many schools have moved to a four-day week to save money. Alphabet's (GOOGL.O), opens new tab Google, which built an Oklahoma data center in 2011, donated funds to the local school district in part to attract faculty. Oklahoma's superintendent of schools is an elected position over which Stitt has no control. The governor successfully pushed for a school voucher system that he said should attract more families. "If I create competition, and now a public school has to compete for a student, it's going to make all boats rise and bring more talent to Oklahoma," Stitt said. The governor said he is focused on helping the minerals refiners in his state grow and is lobbying Trump to require federal contractors to increase the percentage of minerals they buy that are processed in the country. That's a key desire also for Long, the Westwin founder, who spent her youth herding cattle, an experience she said inspired her interest in refining and a reticence for mining. "After seeing the beef and meat industry, I learned that the packer is the one that seems to take the least amount of risk and yet makes the most amount of money," she said. "When I saw mining, I was like, 'The miner is the rancher and the refiner is the packer.' So I decided I want to be the packer."
Reuters
31 minutes ago
- Reuters
Indonesia finds environmental violations in Morowali nickel hub
JAKARTA, June 18 (Reuters) - A nickel processing hub managed by PT Indonesia Morowali Industrial Park (IMIP) has been ordered to rectify a series of "serious" environmental violations, including the construction of plants on unapproved land, the environment ministry said on Wednesday. PT IMIP built plants and conducted other activities on 1,800 hectares (4,447.9 acres) of land that were not included in IMIP's original environmental impact assessment report, the ministry said in a statement. The ministry found an estimated 12 million metric tons of illegal tailing deposits, while air pollution in the area also exceeded allowed parameters, it added. "PT IMIP must stop activities that are not covered by its environmental approval," Environment Minister Hanif Faisol Nurofiq said. The company did not immediately respond to a request for comment. On its website, the company said it is committed to maintaining sustainable and environmentally friendly operations. IMIP is the largest nickel processing hub in resource-rich Indonesia, covering a total of 4,000 hectares and has over 50 tenants, mainly makers of nickel products for stainless steel and EV battery materials, according to the company website. According to the ministry, IMIP's total industrial area stands at 2,000 hectares. IMIP counts giant Chinese steelmaker Tsingshan Holding Group among its shareholders. The ministry said it will impose fines on the company, and police will also launch an investigation into the management of hazardous and toxic tailings in the area. "We will order an environmental audit of the entire IMIP industrial area. On findings of hazardous waste tailings, we will proceed with a criminal and civil legal process," said Rizal Irawan, a senior official at the ministry.
Reuters
31 minutes ago
- Reuters
Thousands of Iranians flee Tehran bombing; Trump said to consider joining Israel in strikes
JERUSALEM/DUBAI, June 18 (Reuters) - Thousands of people were fleeing Tehran on Wednesday after Israeli warplanes bombed the city overnight, and a source said U.S. President Donald Trump was considering options that include joining Israel in attacking Iranian nuclear sites. An Israeli military official said 50 Israeli jets had struck around 20 targets in Tehran overnight, including sites producing raw materials, components and manufacturing systems for missiles. Israel told residents in a southwestern area of Tehran to evacuate so its air force could strike. Iran responded with a fresh volley of missiles at Israel, and a new warning that it would respond against the United States if Washington joined the war. Roads north out of Tehran were jammed with traffic. "We left Tehran this morning. My children were frightened, and we're going to stay at my brother's house near Karaj," Alireza, 37, a businessman, told Reuters by phone. Arezou, 31, had made it out of the capital and was in the nearby resort town of Lavasan. "We will stay here as long as this war continues. My friend's house in Tehran was attacked and her brother was injured. They are civilians," she told Reuters. "Why are we paying the price for the regime's decision to pursue a nuclear programme?' A flurry of social media posts from Trump on Tuesday, including a demand for Iran's "UNCONDITIONAL SURRENDER!" and a post musing about killing Supreme Leader Ali Khamenei, increased speculation that he could bring the United States into the war. A source familiar with internal discussions said Trump and his team were considering a number of options, which included joining Israel in strikes against Iranian nuclear sites. Iran had conveyed to Washington that it would retaliate against the United States for any direct participation, its ambassador to the United Nations in Geneva, Ali Bahreini, said. He said he already saw the U.S. as "complicit in what Israel is doing". "We will not show any reluctance in defending our people, security and land - we will respond seriously and strongly, without restraint." Iran has been exploring options for leverage, including veiled threats to hit the global oil market by restricting access to the Gulf through the Strait of Hormuz, the world's most important shipping artery for oil, which it controls. A Former Iranian Economy Minister Ehsan Khandouzi, said on X that Iran should quickly start requiring permission for tankers transiting the strait, a move he said would be "decisive" if implemented quickly. Iran's Oil Ministry and Foreign Ministry did not immediately respond to requests for comment. Inside Iran, the biggest attacks since war with Iraq in the 1980s have wiped out an echelon of senior leadership. Authorities are intent on preventing panic and shortages, and fewer images of destruction have been allowed to circulate than in the early days of the bombing, when state media showed pictures of explosions, fires and flattened apartments. A ban on filming by the public has been imposed. Authorities have placed limits on how much fuel can be purchased. Oil Minister Mohsen Paknejad told state TV that restrictions were in place to prevent shortages but there would be no problem supplying fuel to the public. With Khamenei's main military and security advisers killed by Israeli strikes, the leader's inner circle has been narrowed, raising the risk that he could make strategic errors, according to five people familiar with his decision-making process. Iranian officials have reported at least 224 deaths, mostly civilians, though that toll has not been updated for days. In Israel, Iran's retaliatory strikes are the first time in decades of shadow war and proxy conflict that a significant number of missiles fired from Iran have penetrated defences, killing Israelis in their homes. Since Friday, Iran has fired around 400 missiles at Israel, some 40 of which have pierced through air defences, killing 24 people, all of them civilians, according to Israeli authorities. Explosions were heard over Tel Aviv on Wednesday. The military said two barrages of Iranian missiles were launched toward Israel in the first two hours of Wednesday morning. Iran's semi-official Mehr news agency reported clashes early on Wednesday between security forces and unidentified gunmen in the city of Rey, south of Tehran, adding that assailants may be linked to Israel and intended to carry out "terrorist operations in densely populated areas of the capital". Reuters could not independently verify the situation there. Iranian news websites said Israel was attacking a university linked to Iran's Revolutionary Guards in the country's east, and the Khojir ballistic missile facility near Tehran, which was also targeted by Israeli airstrikes last October. Trump's social media posts - which have ranged from diplomatic offers to end the war to threats to join it - have created uncertainty over his intentions. The U.S. has so far taken only indirect actions in the conflict, including helping to shoot down missiles fired toward Israel. But Washington has capabilities that Israel lacks, including massive bombs able to destroy Iran's nuclear enrichment plant, built deep under a mountain at Fordow. On Tuesday he mused about killing Iran's Supreme Leader Ayatollah Ali Khamenei: "We know exactly where the so-called 'Supreme Leader' is hiding," he wrote on Truth Social. "We are not going to take him out (kill!), at least not for now ... Our patience is wearing thin." Three minutes later Trump posted, "UNCONDITIONAL SURRENDER!" The U.S. is deploying more fighter aircraft to the Middle East and extending the deployment of other warplanes, three U.S. officials told Reuters. A source with access to U.S. intelligence reports said Iran had moved some ballistic missile launchers, but it was difficult to determine if they were targeting U.S. forces or Israel. Iran, for its part, has lost much of its capability to retaliate against Israel through proxy fighters close to Israeli borders during the past 20 months of Israel's war in Gaza. Israel has pounded Iranian allies Hamas in Gaza and Hezbollah in Lebanon. Syrian leader Bashar al-Assad, propped up by Iran through 13 years of war, was toppled last year.
