Swiss Manufacturing Jumps on Hope for Tariff Deal With US
Swiss manufacturing rose much more than anticipated in June, reflecting hope that a solution to the ongoing tariff spat with the US can be found as the July 9 deadline looms.
The Purchasing Managers' Index rose to 49.6 from 42.1 in May, the third-largest change in the indicator's history, UBS and procure.ch said on Tuesday. Economists surveyed by Bloomberg had expected a smaller increase.
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(Bloomberg) -- Japan's efforts to maintain a steady, friendly approach to trade negotiations are being tested as President Donald Trump ramps up pressure for a deal ahead of a looming tariff deadline. Struggling Downtowns Are Looking to Lure New Crowds Philadelphia Transit System Votes to Cut Service by 45%, Hike Fares Squeezed by Crowds, the Roads of Central Park Are Being Reimagined Sprawl Is Still Not the Answer With higher US tariffs set to take effect on July 9, Tokyo's cautious strategy has yet to deliver a breakthrough, raising the risk that it could become an easy target in the Trump administration's push for fast wins. Unlike China, which has taken a more retaliatory stance to US pressure, Japan remains dependent on Washington for trade and security, leaving Tokyo with little appetite for direct confrontation. 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Japanese officials responded cautiously on Tuesday, trying not to inflame tensions. Akazawa — who's made seven trips to Washington in recent months — may have had the most reason to be frustrated. On his latest visit, he didn't get to meet Treasury Secretary Scott Bessent, and two of his three conversations with Commerce Secretary Howard Lutnick happened over the phone. 'Most times I'm taking off from Haneda Airport without a confirmed schedule of meetings,' Akazawa said Tuesday on his return to Tokyo. Yet despite the hurdles, he projected confidence that repeated talks and relationship-building will eventually lead to a mutually acceptable deal. 'We expect a package to span various fields and become quite extensive, so there are still points where the two sides are not on the same page,' he said. 'We find both the reciprocal and sectoral tariffs unfortunate. So we won't be able to say we have protected our national interests unless both of them are addressed.' Investors, for now, are keeping calm amid the trade negotiations. 'The bark is worse than the bite,' said Rajeev De Mello, Geneva-based portfolio manager at Gama Asset Management SA. 'I expect that the US will delay most of the excess tariffs but keep a 10% rate.' Japan's Strategy Japan's pitch to Washington has centered on jobs and investment, especially in the auto industry. Ishiba's team is pushing to reduce a steep 25% tariff on Japanese cars and lower the planned across-the-board duties from 24% set to take effect on July 9. Tokyo is also offering cooperation on shipbuilding and increased spending on US semiconductors and liquefied natural gas as sweeteners. That jobs-first message has worked before. Trump dropped his opposition to Nippon Steel's takeover of US Steel after Japan stressed its commitment to American workers. But a strategy that worked in the boardroom may not be enough to move the dial at the national level. 'The message from the Trump administration is that it wants something big. The Japanese are patching things together and hoping that it sticks,' Nishimura said. The stakes are high for Tokyo. Japan's auto industry accounts for nearly 10% of the country's gross domestic product and employs around 8% of the workforce, making it a vital growth engine Ishiba is under pressure to defend. While some level of tariffs on cars seems inevitable, officials hope to bring them down closer to 10% to show progress at home. One option could be to open Japan's rice market in exchange for concessions on cars. But that's politically sensitive. The ruling Liberal Democratic Party has long relied on support from the farming sector to retain seats in rural areas, and any move seen as giving up the agricultural lobby to protect the auto industry would risk alienating that voting base. Akazawa has said Japan won't sacrifice farmers in the trade deals. 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