Japan, US Trade Negotiators Meet as Aug. 1 Tariff Deadline Looms
The two met in Washington for more than two hours on Monday evening, Japan's cabinet secretariat said in a statement Tuesday. They had frank, in-depth discussions toward achieving a mutually beneficial agreement, the statement said, while adding that Japan still aims to protect its national interests.
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New US tariffs cloud outlook for exporters in Asia and beyond
BANGKOK (AP) — President Donald Trump's new tariff rates on U.S. imports from dozens of countries took effect Thursday, the latest chapter in the saga of Trump's reshaping of global trade. But many questions remain. Trump has threatened tariffs of up to 200% on imports of pharmaceuticals and has ordered a 100% import tax on computer chips. Most U.S. imports of copper, steel and aluminum are subject to a 50% tariff. There's still no agreement on what tariffs might apply to products shipped from China. India has no deal yet and faces a potential 50% tariff as Trump pressures it to stop buying oil from Russia. Recent data shows uncertainty is clouding the outlook for exporters around the world as a rush to beat the tariffs during a pause for negotiation tapers off. Companies are reporting billions of dollars in higher costs or losses due to the higher import duties. Global financial markets took Thursday's tariff adjustments in stride, with Asian shares and U.S. futures mostly higher. Here's where things stand in what has proven to be a fast-changing policy landscape. The tariffs taking effect this week The tariffs announced on Aug. 1 apply to 66 countries, Taiwan and the Falkland Islands. They are a revised version of what Trump called " reciprocal tariffs," announced on April 2: import taxes of up to 50% on goods from countries that have a trade surplus with the United States, along with 10% 'baseline'' taxes on almost everyone else. That move triggered sell-offs in financial markets and Trump backtracked to allow time for trade talks. The president has bypassed Congress, which has authority over taxes, by invoking a 1977 law to declare the trade deficit a national emergency. That's being challenged in court, but the revised tariffs still took effect. To keep their access to the huge American market, major trading partners have struck deals with Trump. The United Kingdom agreed to 10% tariffs and the European Union, South Korea and Japan accepted U.S. tariffs of 15%. Those are much higher than the low single-digit rates they paid last year, but down from the 30% Trump had ordered for the EU and the 25% he ordered for Japan. Countries in Africa and Asia are mostly facing lower rates than the ones Trump decreed in April. Thailand, Pakistan, South Korea, Vietnam, Indonesia and the Philippines cut deals with Trump, settling for rates of around 20%. Indonesia views its 19% tariff deal as a leg up against exporters in other countries that will have to pay slightly more, said Fithra Faisal Hastiadi, a spokesperson in the Indonesian president's office. 'We were competing against Vietnam, India, Bangladesh, Sri Lanka and China ... and they are all subject to higher reciprocal tariffs,' Hastiadi said. 'We believe we will stay competitive.' The latest situation for China and India Trump has yet to announce whether he will extend an Aug. 12 deadline for reaching a trade agreement with China that would forestall earlier threats of tariffs of up to 245%. Treasury Secretary Scott Bessent said the president is deciding about another 90-day delay to allow time to work out details of an agreement setting tariffs on most products at 50%, including extra import duties related to illicit trade in fentanyl. Higher import taxes on small parcels from China have hurt smaller factories and layoffs have accelerated, leaving some 200 million workers reliant on 'flexible work' — the gig economy — for their livelihoods, the government estimates. India also has no broad trade agreement with Trump. On Wednesday, Trump he signed an executive order placing an extra 25% tariff for its purchases of Russian oil, bringing combined U.S. tariffs to 50%. India's Foreign Ministry has stood firm, saying it began importing oil from Russia because traditional supplies were diverted to Europe after the outbreak of the Ukraine conflict, a 'necessity compelled by the global market situation.' The hardest-hit countries Struggling, impoverished Laos and war-torn Myanmar and Syria face 40-41% rates. Trump whacked Brazil with a 50% import tax largely because he's unhappy with its treatment of former Brazilian President Jair Bolsonaro. South Africa said the steep 30% rate Trump has ordered on the exporter of precious gems and metals has put 30,000 jobs at risk and left the country scrambling to find new markets outside the United States. Even wealthy Switzerland is under the gun. Swiss officials were visiting Washington this week to try to stave off a whopping 39% tariff on U.S. imports of its chocolate, watches and other products. The rate is over 2 1/2 times the 15% rate on European Union goods exported to the United States. Canada and Mexico have their own arrangements Goods that comply with the 2020 United States-Mexico-Canada Agreement that Trump negotiated during his first term are excluded from the tariffs. Even though U.S. neighbor and ally Canada was hit by a 35% tariff after it defied Trump, a staunch supporter of Israeli Prime Minister Benjamin Netanyahu, by saying it would recognize a Palestinian state, nearly all of its exports to the U.S. remain duty free. Canada's central bank says 100% of energy exports and 95% of other exports are compliant with the agreement since regional rules mean Canadian and Mexico companies can claim preferential treatment. The slice of Mexican exports not covered by the USMCA is subject to a 25% tariff, down from an earlier rate of 30%, during a 90-day negotiating period that began last week. The outlook for businesses Surveys of factory managers offer monthly insights into export orders, hiring and other indicators of how businesses are faring. The latest figures in the United States and globally mostly showed conditions deteriorating. In Japan, factory output contracted in July, purchasing activity fell and hiring slowed, according to the S&P Global Manufacturing PMI. But the data were collected before Trump announced a trade deal that cut tariffs on Japanese exports to 15% from 25%. Similar surveys show a deterioration in manufacturing conditions worldwide, as a boost from 'front loading' export orders to beat higher tariffs faded, S&P Global said. Similar measures for service industries have remained stronger, reflecting more domestic business activity. In Asia, that includes a rebound in tourism across the region. Corporate bottom lines are also taking a hit. Honda Motor said Wednesday that it estimates the cost from higher tariffs at about $3 billion. On top that, the U.S. economy — Trump's trump card as the world's biggest market — is starting to show pain from months of tariff threats. ___ Associated Press writer Niniek Karmini in Jakarta and Aniruddha Ghosal in Hanoi contributed.
Yahoo
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Sony raises its profit forecast after saying it expects less damage from Trump's tariffs
TOKYO (AP) — Japanese entertainment and electronics company Sony said Thursday that its profit surged 23% in the last quarter from the year before, as damage from U.S. President Donald Trump's tariffs was less than it had expected. The Tokyo-based manufacturer reported its April-June profit totaled 259 billion yen, or $1.8 billion, up from 210 billion yen. Quarterly sales edged up 2% to 2.6 trillion yen ($17.7 billion) as demand grew for games and network services, imaging solutions and sensors. The maker of PlayStation game machines, digital cameras, Walkman audio players and Spider-Man movies said those positive factors offset the negative impact from unfavorable exchanges rates. Sony said its network business also was drawing more subscribers to its online services. Sony raised its forecast for its profit in the full fiscal year until March 2026 to 970 billion yen ($6.6 billion), from an earlier forecast of 930 billion yen ($6.3 billion). The revised projection is still lower than what it earned in the previous fiscal year at 1 trillion yen. Sony now estimates the impact of the additional U.S. tariffs on its operating income at 70 billion yen ($476 million), much better than the initial estimate of 100 billion yen ($680 million). One of the successes among Sony's entertainment franchises was the latest 'Demon Slayer' animation movie, which is part of a hit series and is doing well at the box office. ___ Yuri Kageyama is on Threads:
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Alphabet (GOOGL) Expands AI Partnership With Zoomcar Enhancing User Experience And Operational Efficiency
Alphabet saw a 28% rise in its share price over the last quarter, buoyed by strong earnings announcements and strategic share buybacks. A reported 14% increase in Q2 sales to USD 96.4 billion and a notable rise in net income to USD 28.2 billion significantly contributed to this upward momentum. Additionally, developments such as Alphabet's inclusion in various Russell benchmarks and ongoing client collaborations added further positive weight. The comprehensive market performance, alongside strong tech sector results, likely supported Alphabet's remarkable growth during this period, aligning with broader market uptrends. Buy, Hold or Sell Alphabet? View our complete analysis and fair value estimate and you decide. AI is about to change healthcare. These 26 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. The rise in Alphabet's recent share price reflects positive sentiment around strong earnings and share buybacks, influencing long-term investor perceptions. Over the past five years, Alphabet's total shareholder return, including dividends, reached a substantial 160.13%. This long-term performance contrasts with its recent underperformance compared to the broader US market and Interactive Media and Services industry in the past year, where Alphabet trailed both benchmarks. The announced strategic initiatives in AI and cloud services bolster revenue forecasts, signaling potential for sustained growth. Analysts project Alphabet's earnings to grow from US$115.57 billion today to US$149.1 billion by 2028, with earnings per share reaching US$12.85. However, challenges such as high capital expenditures and regulatory pressures could pose risks to meeting these forecasts without commensurate revenue expansion. The company's current share price of US$196.09 is below the consensus analyst price target of US$216.59, suggesting room for growth if earnings targets are met and revenue growth aligns with expectations. Gain insights into Alphabet's historical outcomes by reviewing our past performance report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GOOGL. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
