Letter from Nikkei Asia's editor: Asia on edge as Trump tariff pause nears end
As the tariff implementation nears, President Trump has intensified his criticism, especially toward Japan. Earlier this week, he declared, "I'm not sure we're going to make a deal," and accused Japan of having "ripped us off for 30, 40 years."
The additional 25% tariff on automobiles is already affecting Japanese automakers. With the cost burden becoming harder to absorb, companies such as Toyota Motor and Mitsubishi Motors have decided to raise prices in the U.S. market.
To help make sense of the complex and shifting Trump tariffs -- which will have significant effects across Asia -- Nikkei Asia has launched a "tariff tracker." And this coming Tuesday, just ahead of the deadline, our market team will host a live webinar to break down the expected impacts.
As for what decisions President Trump -- now widely known as a flip-flopper -- will make by Wednesday, that remains to be seen. Be sure to check back with Nikkei Asia for the latest updates.
My suggested reads
1. Less than a year after taking office, Thailand's youngest-ever prime minister, Paetongtarn Shinawatra, faces a political crisis. Her suspension by the Constitutional Court on Tuesday has deepened the country's turmoil and underscored the weakening of her Pheu Thai Party, founded by her father, former Prime Minister Thaksin Shinawatra.
2. Presidents of two of the Philippines' top retailers -- Robinsons Retail Holdings Inc. and SM Investments Corp. -- told Nikkei Asia that while domestic consumers are proving more resilient than expected, they are also becoming increasingly price-conscious and displaying a shift toward more deliberate spending, signaling that retailers will need to adapt to evolving consumer preferences.
3. While China and the U.S. chase ever more humanlike robots, Japan is going down a different path. The onetime leader in humanoid robots, as exemplified by SoftBank's Pepper, is now focusing on more pragmatic applications, like cat-eared waiters and cleaning bots, to address the country's severe labor crunch. As a bonus: They're cute, too.
4. Hong Kong's financial authorities injected massive liquidity into the market to keep the local currency within its pegged band, amid weakness in the U.S. dollar. This pushed borrowing costs in Hong Kong close to zero, enabling investors to exploit the U.S.-Hong Kong interest rate gap through so-called carry trades. As a result, the Hong Kong dollar swung sharply from the stronger to the weaker end of its trading band against the greenback.
5. Japanese baseball superstar Shohei Ohtani is winning global acclaim for his exploits in the U.S. major leagues. American baseball scout Jamey Storvick thinks he may have found Ohtani's Taiwanese equivalent in Lin Sheng-en, a 19-year-old phenom who hails from the Indigenous Amis people and has signed with the Cincinnati Reds.
Through the lens
This week's top photo pick : Anti-government protesters rally in front of the Victory Monument on June 28 in Bangkok. Thousands gathered to demand Thai Prime Minister Paetongtarn Shinawatra's resignation over a leaked phone call linked to a border dispute with Cambodia. It was the largest anti-government rally since 2023, adding pressure to the government ahead of a possible no-confidence vote. (Photo by)
Check out more of our photo coverage here
Wishing you a wonderful weekend!
Akito Tanaka
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Japan Times
an hour ago
- Japan Times
As trade deadline approaches, Japan must draw lines
According to conventional wisdom, a strong national leader will force a weak one, or one with less popular support, to buckle in tough negotiations. By that logic, U.S. President Donald Trump has the whip hand in trade talks with Prime Minister Shigeru Ishiba. Yet, Ishiba has held out, resisting U.S. pressure to sign a quick deal, a position that is strengthened, ironically, by Ishiba's weakness. The prime minister cannot afford to make concessions as the July 20 Upper House election approaches. His spine is stiffened by the failure of the U.S. to make clear its demands and the U.S. president's record of ripping up deals that even he negotiated. Clarity and trust are the essential prerequisites of successful negotiations. Neither exists today. Japan was worried about Trump's return to the White House, fearful that the bilateral relationship would suffer given the 45th and 47th president's long-time animus toward Japan and the absence of a 'Trump whisperer,' former Prime Minister Shinzo Abe. Yet, in January, Trump described the partnership as 'a friendship like few others,' certain that 'the cherished alliances between our two countries will continue to flourish long into the future!' Sensing opportunity, Ishiba hurried to Washington to meet Trump, a move that some considered unseemly and perhaps unwise, but the resulting summit was a success. When Trump announced that he would impose blanket 10% tariffs on all trade partners, with still greater sanctions on specific sectors like autos, auto parts, steel and aluminum, Japan was one of the first countries to begin negotiations on a deal, its faith in the relationship yielding confidence that an agreement was possible. Since then, Ryosei Akazawa, Japan's chief tariff negotiator, has visited Washington regularly, sometimes weekly, in search of a deal. Despite seven rounds of talks, periodic claims that an agreement was imminent and impressive efforts by Japan to court the mercurial U.S. president — at one point, Akazawa wore a 'Make America Great Again' cap while meeting Trump — the two countries remain at loggerheads. In the last round, held late last month, Akazawa failed to even meet Scott Bessent, U.S. treasury secretary and chief U.S. negotiator, or U.S. Trade Representative Jamieson Greer. Worse, when the talks adjourned Trump unloaded on Japan, complaining that the country was 'spoiled' and took no U.S. rice or automobiles. Talking to reporters, he wasn't sure if a deal with Japan was possible, saying 'I doubt it. ... They're very tough.' Trump said that he would be sending Japan 'a letter,' or notice of his intent to impose tariffs on its goods, which would mark 'the end of the trade deal.' In an interview, Trump warned that Japan would 'pay a 25% tariff on your cars,' and later comments hinted it could be as high as a 35% levy. Japan responded with silence. While the current deadline for a deal is July 9, Bessent has indicated that an extension might be possible. There are reports that Akazawa may make yet another trip to Washington for another round of talks. One of the questions he needs answered is what purpose U.S. tariffs serve. If they are intended to raise revenue that facilitates the restructuring of the U.S. tax system, which would imply that they are permanent, then the parameters of a deal are much changed. An agreement is difficult when one side doesn't understand the facts. The charge that Japan imports no U.S. rice is false, as agriculture minister Shinjiro Koizumi explained. 'Rice imports from abroad, including from the U.S., had increased 120 times from a year earlier.' If Japanese consumers don't buy U.S. automobiles, it isn't because of tariffs — this country imposes no levy on imported passenger cars — but because American automakers don't build vehicles that Japanese want. Koizumi was right to call Trump's comments an 'obvious misunderstanding of the facts.' Autos are central to any eventual resolution of this dispute. Trump insists that his 25% tariff, imposed in March, is nonnegotiable. Japan wants it gone. The U.S. may believe that Japan will be squeezed by its tariffs. And, in fact, exports to the U.S. dropped by 11% year on year in May, with automobile exports down 24.7%. Automakers have been working to avoid passing on the tariff costs, but they are reaching the limits at which they can squeeze their supply chains. Japanese automakers have increased production in the U.S., which is one of Trump's objectives. Any eventual resolution is more likely to reflect larger political and economic considerations than the specific terms of any document. Fearful of some of the consequences, Trump has been criticized for failing to follow through on his threats and the prospect of an economic slowdown in the U.S. — the perpetual warning of economists when they evaluate his trade policy — could force him to back off again. Trump has also been promising deals for so long and has achieved such meager results — only agreements with Vietnam and the U.K., while a purported pact with China remains unclear — that his administration might settle for something with Japan that is more symbolic than real. If Trump believed that Ishiba would readily submit to his demands, he was mistaken. That error is understandable. The U.S. is central to Japan's economy and critical to its security but the leverage that affords the U.S. president is limited. Growing numbers of Japanese voters oppose gross concessions. One poll shows more than half of voters believe Japan should not make a deal even if it hurts the bilateral relationship. Only 15% agree to concessions to avoid additional tariffs. Most worrisome now is a growing sense among the Japanese public that the U.S. is no longer a reliable partner. After all, in 2019, Trump and Abe released a joint statement after signing a trade pact that said 'While faithfully implementing these agreements, both nations will refrain from taking measures against the spirit of these agreements and this Joint Statement.' Yet here we are again. American credibility is also diminished by constant calls for ever-more defense spending, first to 2% of gross domestic product, then 3% and now 5%. It is not surprising, then, that another recent poll showed that only 22% either greatly (3%) or somewhat (19%) trust the U.S., while 68% somewhat (46%) or entirely (22%) distrust it. An agreement is difficult in these circumstances. Still, it is possible. And Japan has cards to play. It could pledge to increase purchases of crude oil, natural gas and agricultural products to help balance trade accounts. While these are ultimately private sector decisions, the Japanese government could also encourage companies to invest in the U.S. This shouldn't take much effort since it is already occurring. But Japan must also draw lines. While this country needs a good working relationship with the U.S., it must not be at any cost. This country has national interests to protect. They include a thriving security partnership, a stable and growing economy and a rules-based international order. Indulging a mercurial if not arbitrary U.S. president is not among them, especially if it threatens those other concerns. The Japan Times Editorial Board
The Mainichi
3 hours ago
- The Mainichi
Russia hammers Kyiv in largest missile and drone barrage since war in Ukraine began
KYIV, Ukraine (AP) -- Waves of drone and missile attacks targeted Kyiv overnight into Friday in the largest aerial attack since Russia's invasion of Ukraine began more than three years ago, injuring 23 people and inflicting severe damage across multiple districts of the capital in a seven-hour onslaught. Russia launched 550 drones and missiles across Ukraine during the night, the country's air force said. The majority were Shahed drones, but Russia also launched 11 missiles in the attack. "It was a harsh, sleepless night," Ukraine President Volodymyr Zelenskyy said. Russia is escalating its long-range attacks on Ukrainian cities. Less than a week ago Russia launched its previous largest aerial assault of the war. That strategy has coincided with a new push by Russia's bigger forces along parts of the roughly 1,000-kilometer (620-mile) front line, where Ukrainian troops are under severe pressure. Trump 'not happy' with Russia's attacks The attack on Kyiv began the same day a phone call took place between U.S. President Donald Trump and Russian President Vladimir Putin. Zelenskyy called the timing of the strikes a deliberate signal that Moscow has no intention of ending the war. Trump said he would call Zelenskyy on Friday. U.S-led international peace efforts have been fruitless so far. When asked if he made any progress with Putin on a deal to end the fighting in Ukraine, he said: "No, I didn't make any progress with him today at all." "I'm not happy about that. I'm not happy about that," Trump said of Russia's war in Ukraine. According to Yuri Ushakov, Putin's foreign affairs adviser, the Russian leader emphasized that Moscow will seek to achieve its goals in Ukraine and remove the "root causes" of the conflict. "Russia will not back down from these goals," Ushakov told reporters after the call. Putin has argued he sent troops into Ukraine in February 2022 to fend off a threat to Russia posed by Ukraine's push to join NATO and to protect Russian speakers in Ukraine, arguments rejected by Kyiv and its allies. He insisted any prospective peace deal must see Ukraine abandon its NATO bid and recognize Russia's territorial gains. Pentagon halts deliveries of air defense missiles The U.S. has paused some shipments of military aid to Ukraine, including crucial air defense missiles. Ukraine's main European backers are considering how they can help pick up the slack. Zelenskyy says plans are afoot to build up Ukraine's domestic arms industry, but scaling up will take time. Throughout the night, Associated Press journalists in Kyiv heard the constant buzzing of drones overhead and the sound of explosions and intense machine gun fire as Ukrainian forces tried to intercept the aerial assault. "Absolutely horrible and sleepless night in Kyiv," Ukrainian Foreign Minister Andrii Sybiha wrote on social media platform X. "One of the worst so far." Ukraine's Economy Minister Yuliia Svyrydenko described "families running into metro stations, basements, underground parking garages, mass destruction in the heart of our capital." "What Kyiv endured last night, cannot be called anything but a deliberate act of terror," she wrote on X. Kyiv was the primary target of the countrywide attack. At least 14 people were hospitalized, according to Kyiv Mayor Vitali Klitschko. Russia strikes 5 Ukrainian regions Ukrainian air defenses shot down 270 targets, including two cruise missiles. Another 208 targets were lost from radar and presumed jammed. Russia successfully hit eight locations with nine missiles and 63 drones. Debris from intercepted drones fell across at least 33 sites. In addition to the capital, the Dnipropetrovsk, Sumy, Kharkiv, Chernihiv and Kyiv regions also sustained damage, Zelenskyy said. Emergency services reported damage in at least five of the capital's 10 districts. In Solomianskyi district, a five-story residential building was partially destroyed and the roof of a seven-story building caught fire. Fires also broke out at a warehouse, a garage complex and an auto repair facility. In Sviatoshynskyi district, a strike hit a 14-story residential building, sparking a fire. Several vehicles also caught fire nearby. Blazes were also reported at non-residential facilities. In Shevchenkivskyi district, an eight-story building came under attack, with the first floor sustaining damage. Falling debris was recorded in Darnytskyi and Holosiivskyi districts. Ukraine's national railway operator, Ukrzaliznytsia, said drone strikes damaged rail infrastructure in Kyiv.
The Mainichi
3 hours ago
- The Mainichi
Japanese cast national election votes locally in Taiwan for 1st time
TAIPEI (Kyodo) -- Early overseas voting for Japan's approaching upper house race began in Taiwan on Friday, marking the first time that polling stations for Japanese national elections have been set up in the self-ruled territory. Approximately 21,000 Japanese nationals live in Taiwan, with around 16,000 eligible to vote. They can cast their ballots until July 14 in Taipei and Kaohsiung ahead of the July 20 House of Councillors election. The number of officially registered voters, a requirement for overseas electors, has not been disclosed by the Japan-Taiwan Exchange Association, which represents Japanese interests on the island in the absence of official diplomatic ties. In the past, Japanese citizens living in Taiwan had to return to Japan or relied on postal ballots when they wished to participate in an election at home. Ran Shimano, a 44-year-old Taipei resident who was among the first group of voters to cast ballots, said, "I'm glad to be able to deliver my vote to Japan while living overseas." Yo Takaba, deputy representative of the association's Taipei Office, told reporters the move was in response to demand from the "very big Japanese community in Taiwan" which wanted an overseas in-person voting system. "Now we realize that overseas voting is very meaningful, expanding the opportunity to exercise the right to vote and also contributes to an improvement in the convenience of voting," he said. Japan followed countries such as South Korea and Australia, which allow in-person voting for their citizens residing in Taiwan at their de facto diplomatic missions on the island.
