Seven & i deal collapse seen sending signals to activist investors
LISA KIM, JADA NAGUMO and SHOTARO TANI
TOKYO -- Canadian retailer Alimentation Couche-Tard has called it quits after a yearlong siege to take over Japan's iconic Seven & i Holdings. Market experts see the withdrawal as an invitation for activist investors to step up their campaigns to push for more change in corporate Japan.
Recent corporate governance reforms, increased investor activism and government guidelines on fairness and transparency when receiving takeover bids have powered dealmaking to record highs in Japan.
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The Mainichi
24 minutes ago
- The Mainichi
Business leaders laud Japan-US trade deal, admit ongoing challenges
TOKYO (Kyodo) -- Japanese business leaders on Wednesday praised the government for reaching a trade deal with the United States under which tariff rates on Japanese cars and other products will be set at 15 percent, while acknowledging it will still cause hardship for firms. "The persistent negotiations paid off," Yoshinobu Tsutsui, chairman of the Japanese Business Federation, the country's most powerful business lobby also known as Keidanren, told reporters, adding his group has "high regard" for the outcome. The tariffs under the deal, which was first announced by U.S. President Donald Trump on Tuesday, are lower than initially proposed. They were agreed before an Aug. 1 deadline set by the United States to impose a "reciprocal" 25 percent tariff on Japanese goods. "I have yet to look into the details, but would like to provide support (from Keidanren) on multiple fronts," Tsutsui said. While some companies have expressed hope that the potential adverse effects of the levies would be eased, others said challenges were likely to persist as they nevertheless remained high. "The evasion of even higher tariffs across the board may act as a crucial breakwater for companies," said Takeshi Niinami, chairman of the Japan Association of Corporate Executives. "We must work toward rebuilding a free-trade system," he added, also warning of the spread of the "America First" approach. While saying the deal helped remove U.S. tariff uncertainties, Ken Kobayashi, chairman of the Japan Chamber of Commerce and Industry, called the 15 percent tariffs "regrettable." "The effects of this new burden of tariffs will hit not just exporter firms, but also those that shoulder the domestic supply chain and are largely made up of small and medium-sized firms that are responsible for supplying parts and logistics," he said in a statement. The Trump administration's 25 percent additional auto tariff was one of the biggest sticking points in the trade talks. Combined with the 2.5 percent rate already in place, a total tariff of 27.5 percent was imposed on imported passenger vehicles in April. Following the latest announcement, a source from a major automaker expressed dismay at the deal, noting tariffs prior to Trump's inauguration had stood at just 2.5 percent. Meanwhile, a source from an electronics manufacturer noted that "compared with the 25 percent tariff that was slated to hit on Aug. 1, 15 percent is slightly better."
Japan Times
26 minutes ago
- Japan Times
Japan and U.S. both claim win in surprise 11th-hour tariff deal
Japan and the United States reached a surprise trade deal on Tuesday in Washington after months of fruitless negotiations and some tense moments, with both sides taking victory laps and Japanese markets cheering the news. The United States is promoting it as the deal of the century. For Japan, it was a mission-accomplished moment. The agreement, the details of which are still being ironed out, includes a 15% "reciprocal" tariff on most Japanese goods and 12.5% on cars, with 50% tariffs on steel and aluminum remaining unchanged. Japan has agreed to buy more rice, improve market access and invest in a $550 billion fund that will support strategic industries and technologies in the United States. 'There has never been anything like it,' U.S. President Donald Trump wrote on Truth Social. The reciprocal tariff is 10 percentage points lower than the rate that had been scheduled to kick in on Aug. 1, while the auto tariff has been cut by half from 25%. The total for autos will now be 15%, including 2.5% duty on autos charged independent of Trump tariffs. 'I firmly believe we have achieved an agreement that protects what needs to be protected, while aligning with the national interests of both Japan and the United States,' Ryosei Akazawa, Japan's chief tariff negotiator, said Tuesday in Washington. Prime Minister Shigeru Ishiba noted that the 15% reciprocal tariff is the best rate achieved by a trade surplus country. The Nikkei 225 stock index rose 3.51% in trading Wednesday, with Toyota up 14.35% and Honda 11.15%. The yen traded steady in the ¥146 to the dollar range. Washington assured Tokyo that for strategically important goods, such as semiconductors and pharmaceutical products, tariffs for Japan will always match the best rate charged to other countries, Akazawa told reporters. He also said that Japan will increase American rice imports under the current minimum access framework, which has allowed roughly 770,000 metric tons of foreign rice to enter Japan annually tariff free. Japan and the United States will make efforts to strengthen supply chains through Japanese investment in the U.S., with a focus on semiconductors, pharmaceuticals, steel, shipbuilding, critical minerals, aerospace, energy, automobiles, artificial intelligence and quantum technology. Japanese government-affiliated financial institutions will provide up to $550 billion in equity investments, loans and loan guarantees, Akazawa said. He noted that defense spending targets were not included in the deal, and that Japan made no commitments to lower tariffs on U.S. products, as they are already very low. Finance Minister Katsunobu Kato said on Wednesday that the deal does not include any agreements on the yen-dollar exchange rate. 'I'm kind of surprised," said William Chou, deputy director of Hudson Institute's Japan Chair, in discussing the auto tariffs. The fact that Japan was able to cut the rate by 12.5 percentage points is a huge accomplishment, he said. Chou added that Japan has promised access and reforms that in the eyes of the U.S. administration "create a long-term pathway towards trade balance.' But Ryo Sahashi, a professor at the University of Tokyo's Institute for Advanced Studies on Asia, called the deal "an extremely limited win." 'What we've achieved is merely a reasonably decent result compared to the worst-case scenario,' he said. 'Japan has simply escaped the worst possible situation, nothing more.' The U.S. president announced the deal after a 70-minute meeting at the White House with Akazawa, who arrived in Washington on Monday for an eighth round of negotiations with the Trump administration. Prior to the meeting at the White House, Akazawa met with U.S. Commerce Secretary Howard Lutnick for more than two hours Monday evening and Treasury Secretary Scott Bessent for about 30 minutes Tuesday afternoon. 'It was a tense and high-stakes negotiation,' Akazawa said of his meeting with Trump. 'Both sides were fully serious and operating at the limit.' On X, Akazawa posted a photo in the White House with a hashtag that translates to #MissionComplete. People react as they read a newspaper special edition reporting on the U.S.-Japan tariff deal, in Tokyo on Wednesday. | REUTERS Ishiba — who has come under immense pressure to resign after the ruling coalition suffered a defeat in an Upper House election and lost its majority in the chamber — took credit Wednesday morning in Tokyo, saying the deal is a result of efforts made by his administration since February. 'This is precisely about prioritizing investment over tariffs,' Ishiba said. 'Since I proposed this idea to President Trump during the summit at the White House in February, I have consistently advocated for it and strongly pushed the U.S. side, and this agreement is the result of those efforts. 'I believe this will contribute to Japan and the United States working together to create jobs and promote high-quality manufacturing, thereby fulfilling various roles on the global stage moving forward,' he told reporters. News reports on Wednesday in Tokyo indicated Ishiba might resign by the end of August, though the prime minister denied this later in the day. 'Ironically, the Ishiba administration appears destined to be driven from office, with this tariff negotiation success potentially becoming its greatest — and final — achievement,' said Sahashi. But even if the leadership changes, Japan is likely to stick to the deal as part of Ishiba's legacy, said Hudson Institute's Chou. "I don't think a different leader would have necessarily been able to find a different path,' Chou said. The surprise breakthrough comes just ahead of an Aug. 1 deadline set by Trump in which the reciprocal rate for Japan was set to rise to 25%, up from the baseline 10%. Japan had previously eyed a meeting between Ishiba and Trump at the Group of Seven summit in June to reach a framework agreement, but auto tariffs had been a major sticking point. In the recent weeks leading up to Tuesday's agreement, Trump had expressed frustration with Japan and the pace of negotiations with the country, at one point threatening to take the reciprocal rate as high as 35%. 'I think both sides can claim that they got parts of what they wanted,' Chou said, while adding that the question now is whether Japan can carry out the pledges it has made. 'We'll have to see how that is carried out. I'm sure the Trump administration will also be paying very close attention."
an hour ago
Japan, EU Vow to Expand Defense, Economic Security Cooperation
News from Japan Politics Jul 23, 2025 20:07 (JST) Tokyo, July 23 (Jiji Press)--Japanese Prime Minister Shigeru Ishiba, European Council President Antonio Costa and European Commission President Ursula von der Leyen on Wednesday agreed to strengthen cooperation on defense and economic security. The Japanese and European Union leaders, meeting in Tokyo, agreed to launch dialogue on reinforcing defense industry bases and expand ministerial dialogue on economic security cooperation. "Stronger Japan-EU relations will enhance the peace and prosperity of our country and the Indo-Pacific region," Ishiba said at a joint press conference with the EU leaders after their meeting. Von der Leyen said Wednesday's meeting reaffirmed the strength of the bonds of the two sides in an increasingly fragmented world. "The security of Europe and the Indo-Pacific are interconnected," the leaders said in a joint statement released after the meeting. "Strengthening the defense industry base is a common priority for Japan and the EU," they said. [Copyright The Jiji Press, Ltd.] Jiji Press
