logo
EDITORIAL: Trading rules that served the world so well must be rebuilt

EDITORIAL: Trading rules that served the world so well must be rebuilt

Asahi Shimbun15 hours ago
A mine for rare-earth metals in Inner Mongolia, northern China (Reuters)
Although the United States and China reached an agreement to mutually rescind high tariffs, there is still a potential for flareups.
Avoiding further negative ramifications on the global economy is paramount.
Ministerial-level discussions between the two nations in London in early June led Beijing to lift its restrictions on rare-earth metal exports to the United States.
For its part, Washington partially removed restrictions on semiconductor-related exports to China.
During the discussions, the focus was on China's restrictions on exports of rare-earth metals.
Rare-earth metals are used in high-performance magnets and optical equipment. They are also indispensable to a wide range of products, from automobiles and home appliances to missiles and fighter jets.
China has about a 70-percent share of the global market in rare-earth metals.
From April, Beijing implemented a system to regulate rare-earth metal exports on grounds they could be used not only for commercial products but also military purposes.
But China did not explain the standards it uses for the assessment.
That led to concerns being raised by both the United States and Europe.
In Japan, Suzuki Motor Corp. has had to stop production of some models.
Beijing began restricting exports of rare-earth metals after a Chinese fishing boat collided with a Japan Coast Guard cutter close to the disputed Senkaku Islands in 2010. The move was seen as retaliation against Japan.
However, China said it was simply protecting its resources.
In 2012, Japan, the United States and Europe filed a complaint with the World Trade Organization, which ruled against China.
Even with its latest move, Beijing has not retracted its explanation that restrictions were needed because the metals could be used for both military and commercial purposes.
This is not an issue that involves only criticizing China.
Since his first term, U.S. President Donald Trump has intensified restrictions on semiconductor exports to China.
It was intended to thwart China from gaining the advantage in a sector that has direct national security implications.
China's restrictions on rare-earth metals can be seen as tit-for-tat for the U.S. semiconductor restrictions.
Whatever the reason, excuses for limiting or preventing trade should not be permitted.
After two world wars, the global economy operated on the common understanding that a relationship based on free trade provides national security benefits to all.
But that recognition now stands on the brink of collapse.
An action plan was compiled at the June Group of Seven summit to diversify the sources of rare-earth metals.
The intention was to move away from dependence on China, but doing so will likely be difficult in the near term, given the overwhelming share controlled by China.
Every nation has national security considerations.
But with the deeper mutual economic dependence now in place, nations need to figure out rules that protect the free trade order.
In the background to the United States and China sitting down at the negotiating table lies the condition of mutual dependency, which differs from what existed between the United States and the Soviet Union during the Cold War.
We call on both superpowers to fulfill their responsibility.
--The Asahi Shimbun, July 7
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump says 25% tariffs to be slapped on Japan, S. Korea on Aug. 1
Trump says 25% tariffs to be slapped on Japan, S. Korea on Aug. 1

The Mainichi

time33 minutes ago

  • The Mainichi

Trump says 25% tariffs to be slapped on Japan, S. Korea on Aug. 1

WASHINGTON (Kyodo) -- The United States will impose 25 percent tariffs on imports from Japan and South Korea starting Aug. 1, President Donald Trump said Monday, citing trade imbalances and further ramping up pressure on the key U.S. allies to make compromises to get deals done. In nearly identical letters addressed to the leaders of Japan and South Korea, which Trump posted in full on his Truth Social platform, he told each that trade relations with his country have been "far from Reciprocal." "Please understand that the 25% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country," Trump wrote to both Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae Myung. Trump also warned each country that any increases to their tariffs on U.S. goods will be met with an equivalent tariff hike by his administration, above and beyond the 25 percent rate. At the same time, Trump said he may consider making "an adjustment" if the countries remove what he claimed to be trade barriers. "These Tariffs may be modified, upward or downward, depending on our relationship with your Country," he said. Under Trump's so-called reciprocal "Liberation Day" tariffs, the administration has also levied a baseline, or universal, duty of 10 percent covering imports from almost all countries in the world. Until now, Japan was facing an additional tariff of 14 percent, for a total rate of 24 percent. South Korea's was 25 percent. Trump said the updated rates are completely separate from the higher industrial-sector tariffs that have already taken effect, such as those targeting all imports of cars, auto parts and steel. The signed letters were posted two days before a 90-day pause on country-specific tariffs was due to expire and despite weeks of bilateral negotiations between the administration and each of the Asian allies. Both Japan and South Korea have been dealt a severe economic blow by Trump's hike in April of a tariff on imported passenger vehicles to 27.5 percent from 2.5 percent. Meanwhile, Trump has upped the pressure especially on Japan in recent weeks, venting frustration that it does not import a significant amount of American cars or rice. With the U.S. leader showing no signs of granting Tokyo's persistent requests to remove the auto and other tariffs, the new 25 percent rate has created another headache for Japanese officials trying to break the deadlock in negotiations with Washington. Trump later posted on social media similar trade letters to the leaders of Bangladesh, Bosnia and Herzegovina, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Kazakhstan, Serbia, South Africa, Thailand and Tunisia, notifying them of tariff rates from 25 percent to 40 percent. Trump unveiled sweeping country-specific tariffs on April 2, targeting about 60 countries with which the United States runs trade deficits, before pausing them for 90 days to have time for talks mainly with its major trading partners. On Monday, the White House said the pause will be extended to Aug. 1, meaning that the time for dealmaking could continue until then. Although top U.S. trade officials had said they could clinch 90 trade deals in 90 days, only two agreements -- with Britain and Vietnam -- have been sealed so far. U.S. Treasury Secretary Scott Bessent said Monday in a CNBC interview that the administration is set to announce "several" trade deals over the next 48 hours, without naming any countries or offering other details.

Ten dead and dozens injured in Kenya anti-government protests
Ten dead and dozens injured in Kenya anti-government protests

Japan Today

timean hour ago

  • Japan Today

Ten dead and dozens injured in Kenya anti-government protests

A demonstrator lies on the road, watching clashes with police as a fire burns, at the "Saba Saba People's March" anti-government protest in Nairobi, Kenya July 7, 2025. REUTERS/Thomas Mukoya TPX IMAGES OF THE DAY By Humphrey Malalo Kenyan police fired to disperse demonstrators in Nairobi marking the 35th anniversary of pro-democracy rallies on Monday, as Kenya's rights watchdog reported 10 dead and 29 injured nationwide in the latest anti-government protests to end in bloodshed. The death of blogger Albert Ojwang in police custody last month has given the protests fresh impetus, fuelling anger against the authorities and bringing hundreds onto the streets. A Reuters reporter saw police fire at advancing protesters in the Nairobi suburb of Kangemi, with one man later lying motionless on the road with a bleeding wound. The suburb's Eagle Nursing Home said six people had been admitted with injuries, and that two had died from gunshot wounds. A source at Kenyatta National Hospital said it was treating 24 injured people, but did not elaborate on their injuries. The government-funded Kenya National Commission on Human Rights said it had documented 10 dead and 29 injured. It did not provide a breakdown of the figures, recorded across 17 of Kenya's 47 counties. Police did not immediately respond to a request for comment. Law enforcers have been deploying heavily in Nairobi since youth-led protests in June 2024 that initially focused on tax hikes but expanded to cover issues such as corruption, police brutality and unexplained disappearances of government critics. Police used tear gas and water cannon on Monday to disperse hundreds of demonstrators advancing along a road connecting Kangemi to downtown Nairobi. Hours later, protesters and police scuffled, and a Reuters reporter saw police opening fire as the crowd charged at them. The Commission on Human Rights said it saw "numerous hooded officers, not in uniform, travelling in unmarked vehicles". A court order requires police to be easily identifiable following allegations that plain clothes police fired live rounds at demonstrators last year. The Commission also said criminal gangs wielding whips and machetes appeared to be operating alongside police in Nairobi and the Rift Valley town of Eldoret. Local media said there had also been demonstrations in the towns of Nyeri, Embu and the lakeside city of Nakuru, where half a dozen police on horseback dispersed stone-throwing protesters. Police had blocked major roads leading into Nairobi and restricted traffic within the city, leaving streets deserted but for the demonstrators, who arrived on foot. Most schools and at least one shopping mall were shut in anticipation of trouble. Interior Minister Kipchumba Murkomen, who last month described the protests as "terrorism disguised as dissent", said on Sunday that the government was committed to protecting life and property. "Our security agencies are on high alert to deal decisively with criminals and other elements of ill intent who may seek to infiltrate peaceful processions to cause havoc, mayhem, or destruction of property," he said. Activists rally every July 7 to mark the day in 1990 when opponents of then-president Daniel Arap Moi launched a bid to turn Kenya into a multi-party democracy. The protest is called "Saba Saba" - "Seven Seven" in Kiswahili - because of the date. Those protests paved the way two years later for the first multi-party elections in more than two decades. The death of 31-year-old Ojwang, a blogger and teacher, has focused public anger, sparking a string of demonstrations last month. On June 25, according to the Commission, 19 people lost their lives nationwide in demonstrations to protest against Ojwang's death and mark the first anniversary of rallies that culminated in the storming of parliament. Six people including three police officers have been charged with murder over Ojwang's death. © Thomson Reuters 2025.

Lula tells Trump world does not want 'emperor' after U.S. threatens BRICS tariff
Lula tells Trump world does not want 'emperor' after U.S. threatens BRICS tariff

Japan Today

timean hour ago

  • Japan Today

Lula tells Trump world does not want 'emperor' after U.S. threatens BRICS tariff

Leaders of the BRICS group pose for the family photo during the BRICS Summit in Rio de Janeiro, Brazil July 7, 2025. REUTERS/Ricardo Moraes By Manuela Andreoni and Lisandra Paraguassu Developing nations at the BRICS summit on Monday brushed away an accusation from President Donald Trump that they are "anti-American," with Brazil's president saying the world does not need an emperor after the U.S. leader threatened extra tariffs on the bloc. Trump's threat on Sunday night came as the U.S. government prepared to finalize dozens of trade deals with a range of countries before his July 9 deadline for the imposition of significant "retaliatory tariffs." The Trump administration does not intend to immediately impose an additional 10% tariff against BRICS nations, as threatened, but will proceed if individual countries take policies his administration deems "anti-American," according to a source familiar with the matter. At the end of the BRICS summit in Rio de Janeiro, Lula was defiant when asked by journalists about Trump's tariff threat: "The world has changed. We don't want an emperor." "This is a set of countries that wants to find another way of organizing the world from the economic perspective," he said of the bloc. "I think that's why the BRICS are making people uncomfortable." In February, Trump warned the BRICS would face "100% tariffs" if they tried to undermine the role of the U.S. dollar in global trade. Brazil's BRICS presidency had already backed off efforts to advance a common currency for the group that some members proposed last year. But Lula repeated on Monday his view that global trade needs alternatives to the U.S. dollar. "The world needs to find a way that our trade relations don't have to pass through the dollar," Lula told journalists at the end of the BRICS summit in Rio de Janeiro. "Obviously, we have to be responsible about doing that carefully. Our central banks have to discuss it with central banks from other countries," he added. "That's something that happens gradually until it's consolidated." Other BRICS members also pushed back against Trump's threats more subtly. South African President Cyril Ramaphosa told reporters that the group does not seek to compete with any other power and expressed confidence in reaching a trade deal with the U.S. "Tariffs should not be used as a tool for coercion and pressuring," Mao Ning, the Chinese foreign ministry spokesperson said in Beijing. The BRICS advocates for "win-win cooperation," she added, and "does not target any country." A Kremlin spokesperson said Russia's cooperation with the BRICS was based on a "common world view" and "will never be directed against third countries." India did not immediately provide an official response to Trump. Many BRICS members and many of the group's partner nations are highly dependent on trade with the United States. New member Indonesia's senior economic minister, Airlangga Hartarto, who is in Brazil for the BRICS summit, is scheduled to go to the U.S. on Monday to oversee tariff talks, an official told Reuters. Malaysia, which was attending as a partner country and was slapped with 24% tariffs that were later suspended, said that it maintains independent economic policies and is not focused on ideological alignment. MULTILATERAL DIPLOMACY With forums such as the G7 and G20 groups of major economies hamstrung by divisions and Trump's disruptive "America First" approach, the BRICS group has presented itself as a haven for multilateral diplomacy amid violent conflicts and trade wars. In a joint statement released on Sunday afternoon, leaders at the summit condemned the recent bombing of member nation Iran and warned that the rise in tariffs threatened global trade, continuing its veiled criticism of Trump's tariff policies. Hours later, Trump warned he would punish countries seeking to join the group. The original BRICS group gathered leaders from Brazil, Russia, India and China at its first summit in 2009. The bloc later added South Africa and last year included Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates as members. Saudi Arabia has held off formally accepting an invitation to full membership, but is participating as a partner country. More than 30 nations have expressed interest in participating in the BRICS, either as full members or partners. © Thomson Reuters 2025.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store