Latest news with #Japan-US
Japan Forward
a day ago
- General
- Japan Forward
James E Auer Honored in Memorial Service at Sea as 'A Bridge Between Nations'
On July 12, a memorial service was held for James E Auer, a United States Navy officer and scholar who dedicated his life to strengthening the Japan-US alliance. He passed away on May 16, 2024, at the age of 82 in Nashville, Tennessee. Auer made continuous contributions to US-Japan security policy, leveraging the extensive network and knowledge he gained during his time in the US Navy. He was also a prominent member of The Sankei Shimbun 's Seiron column and won the Seiron Prize in 2015, becoming the first foreigner to receive it. On the deck of the JS Bungo, JMSDF buglers play taps following the commitment of his ashes to the Sea of Japan. (©JMSDF) The ceremony was held off the coast of Maizuru City in Kyoto Prefecture, marking the first-ever joint burial at sea of an American by the Japan Maritime Self-Defense Force (JMSDF) and the US Navy. Auer had requested in his will that his ashes be scattered at sea by a JMSDF minesweeper in the Sea of Japan. About 60 family members and others influenced by his work attended the service. The ceremony took place on the deck of the JMSDF minesweeper tender, JS Bungo . Surrounded by his eldest son and family, Auer's urn was quietly cast into the Sea of Japan, under the Stars and Stripes held by JMSDF personnel. With his extensive experience in the US Navy and research on the JMSDF, Auer made significant contributions to minesweeping operations. This made the setting especially fitting for honoring his legacy. At the ceremony, Admiral Akira Saito, Chief of Staff of the JMSDF, praised Auer's former students. He noted that they now play a central role in Japan's maritime defense strategy. Rear Admiral Ian Johnson, Commander of the US Navy in Japan, also expressed his sorrow at Auer's passing. Auer was a trusted bridge between the US Navy and the JMSDF, he proclaimed. Akihisa Nagashima, one of Auer's former students, also spoke. He is now Special Advisor to the Prime Minister on national security. Nagashima praised Auer for "directly addressing critical issues, such as the legal framework for collective defense and the role of US forces stationed in Japan." He also highlighted Auer's significant contributions to the security environment in the Asia-Pacific region. Member of the Diet and Advisor to the Prime Minister, Akihisa Nagashima pays respect to his mentor, Jim Auer. From the deck of the JS Bungo. (©JMSDF) (Read the article in Japanese.) Author: Hideki Yoshimura, The Sankei Shimbun
The Star
a day ago
- Business
- The Star
Japan ruling party to discuss Prime Minister Ishiba's fate soon
Shigeru Ishiba, Japan's prime minister and president of the Liberal Democratic Party, centre, arrives at the party's headquarters in Tokyo, Japan, on Monday, July 28, 2025. New opinion polls show support for Ishiba's administration remains low, although surveys also suggest the public sees few good alternatives to the current prime minister. - Bloomberg TOKYO: Japan's ruling party will likely debate the fate of beleaguered Prime Minister Shigeru Ishiba at a gathering in the next few days amid rising calls for a leadership change. Hiroshi Moriyama, the Secretary General of the Liberal Democratic Party, said Tuesday (July 29) that a plenary meeting will be held in the near future, while he said it remains to be decided what exactly might be discussed at the meeting. The fate of Ishiba will likely be on the agenda after some LDP lawmakers on Monday stepped up their calls for Ishiba to resign to take responsibility for the party's election setback on July 20. What's decided at the coming meeting will have weight because it's a venue where the party can formally decide on a range of key matters. Lawmakers could potentially push to bring forward a party leadership election, currently due in about two years, which would effectively force Ishiba to step down or face off against his fellow party members in a vote. Earlier this month the ruling coalition lost control of the upper house, forcing the LDP to govern without a majority in either house of parliament for the first time since its inception in 1955. Ishiba has been maintaining that he needs to stay on to ensure that the Japan-US trade deal is properly implemented, but calls for his resignation have grown within his party. - Bloomberg
Business Times
2 days ago
- Business
- Business Times
BOJ may paint less gloomy view, signal rate-hike resumption
[TOKYO] The Bank of Japan (BOJ) is set to hold off raising interest rates on Thursday (Jul 31) but may offer a less gloomy view on the outlook after Tokyo's trade agreement with the US last week, signalling rate hikes may resume later this year. Receding global trade tensions following Sunday's agreement between the US and the European Union add relief for BOJ policymakers on the outlook of Japan's export-heavy economy. But the BOJ is likely to warn of lingering uncertainty on how US tariffs affect business activity with the hit to exports seen intensifying later this year, analysts say. 'It's very big progress that reduces uncertainty for Japan's economy – but obviously, some uncertainty remains,' BOJ Deputy Governor Shinichi Uchida said last week on the Japan-US trade deal. Uchida noted questions around how soon Washington strikes trade deals with other countries, how the tariffs affect domestic and global economies and how long it could take for the tariffs' effects to be seen in hard data. At the two-day meeting ending on Thursday, the BOJ is widely expected to keep short-term interest rates steady at 0.5 per cent. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Markets are focusing on the bank's quarterly outlook report and Governor Kazuo Ueda's post-meeting news conference for clues on the timing of the next rate hike. A Reuters poll, taken before last week's Japan-US trade deal announcement, showed a majority of economists expect the BOJ to raise rates again by year-end. In the quarterly report, the BOJ is likely to revise up this fiscal year's inflation forecast due to persistent rises in rice and other food costs, sources have told Reuters. The BOJ may also tweak its current view that risks to the price outlook were skewed to the downside, and offer a less gloomy view on the economy compared with the current one focused on tariff-induced risks, according to separate sources. The board is likely to maintain its view that inflation will durably hit its 2 per cent target in the latter half of its three-year projection period running through fiscal 2027, they said. In current projections made on May 1, the BOJ projects core consumer inflation to hit 2.2 per cent in fiscal 2025, before slowing to 1.7 per cent in 2026 and 1.9 per cent in 2027. Japan struck a trade deal with President Donald Trump last week that lowers US tariffs for imports of goods, including its mainstay automobiles, easing the pain for the export-reliant economy and clearing a key hurdle for further BOJ rate hikes. The positive development contrasts with the gloom that surrounded the economy on May 1, when the BOJ produced its current estimates amid heightened market volatility caused by Trump's April announcement of sweeping 'reciprocal' tariffs. The BOJ exited a decade-long, massive stimulus last year and raised its short-term policy rate to 0.5 per cent in January on the view that Japan was progressing towards durably achieving its price goal. With rising food costs hurting households and keeping inflation above its 2 per cent target for three years, some hawkish board members have highlighted mounting price pressures that could justify resuming rate hikes. REUTERS
New Straits Times
2 days ago
- Business
- New Straits Times
BOJ may paint less gloomy view, signal rate-hike resumption
TOKYO: The Bank of Japan (BOJ) is set to hold off raising interest rates on Thursday, but may offer a less gloomy view on the outlook after Tokyo's trade agreement with the United States last week, signalling rate hikes may resume later this year. Receding global trade tensions following Sunday's agreement between the US and the European Union add relief for BOJ policymakers on the outlook of Japan's export-heavy economy. But the BOJ is likely to warn of lingering uncertainty on how US tariffs affect business activity, with the hit to exports seen intensifying later this year, analysts say. "It's very big progress that reduces uncertainty for Japan's economy – but obviously, some uncertainty remains," BOJ Deputy Governor Shinichi Uchida said last week on the Japan-US trade deal. Uchida noted questions around how soon Washington strikes trade deals with other countries, how the tariffs affect domestic and global economies, and how long it could take for the tariffs' effects to be seen in hard data. At the two-day meeting ending on Thursday, the BOJ is widely expected to keep short-term interest rates steady at 0.5 per cent. Markets are focusing on the bank's quarterly outlook report and Governor Kazuo Ueda's post-meeting news conference for clues on the timing of the next rate hike. A Reuters poll, taken before last week's Japan-US trade deal announcement, showed a majority of economists expect the BOJ to raise rates again by year-end. In the quarterly report, the BOJ is likely to revise up this fiscal year's inflation forecast due to persistent rises in rice and other food costs, sources have told Reuters. The BOJ may also tweak its current view that risks to the price outlook were skewed to the downside, and offer a less gloomy view on the economy compared with the current one focused on tariff-induced risks, according to separate sources. The board is likely to maintain its view that inflation will durably hit its 2.0 per cent target in the latter half of its three-year projection period running through fiscal 2027, they said. In current projections made on May 1, the BOJ projects core consumer inflation to hit 2.2 per cent in fiscal 2025, before slowing to 0.7 per cent in 2026 and 0.9 per cent in 2027. Japan struck a trade deal with President Donald Trump last week that lowers US tariffs for imports of goods including its mainstay automobiles, easing the pain for the export-reliant economy and clearing a key hurdle for further BOJ rate hikes. The positive development contrasts with the gloom that surrounded the economy on May 1, when the BOJ produced its current estimates amid heightened market volatility caused by Trump's April announcement of sweeping "reciprocal" tariffs. The BOJ exited a decade-long, massive stimulus last year and raised its short-term policy rate to 0.5 per cent in January on the view Japan was progressing towards durably achieving its price goal. With rising food costs hurting households and keeping inflation above its 2.0 per cent target for three years, some hawkish board members have highlighted mounting price pressures that could justify resuming rate hikes.
Indian Express
3 days ago
- Automotive
- Indian Express
Japan's big trade win with US on auto offers some cues for India, others
For India, the world's largest rice exporter, the recent US-Japan deal offers a somewhat cautionary tale on agri access in the context of its own negotiations with the Americans for a bilateral trade pact. At the same time, it is increasingly becoming clear that the Japanese negotiators managed to upstage their American counterparts by getting an immensely favourable deal on automobiles, even as they dangled the agri market access concessions offered by Japan and Tokyo's investment pledges as distraction the entire time. This could offer a template for others negotiating with the US for deals, including India. Under the US-Japan deal, which US President Donald Trump referred to as 'the biggest deal ever made', the Americans have agreed to impose 15 per cent reciprocal tariffs, compared to the 25 per cent the US had threatened earlier last week. While most of the focus of the US-Japan deal has been on how Washington DC managed to get market access for American agricultural products, including politically sensitive items such as rice, what the Japanese managed to wrangle out is the best possible deal for its auto sector in the given circumstances. According to the final deal, Japanese automakers would face a 15 per cent tariff now when entering the US market, much less than the global tariff on cars imposed by the US. The Big Three automakers in America – GM, Ford and Stellantis (essentially Chysler) – are now crying foul, because, as they see it, the Japanese now have a clear tariff advantage. After this deal, cars and car parts from Japan can get into the US after paying the 15 per cent tariff while American car makers, most of whom import a lot of cars and car parts fully assembled and manufactured in Canada and Mexico, are currently paying a 25 per cent tariff to import cars and parts into the US market from these two countries. For Japan, the country's automotive industry is a big contributor to its economy, representing about 10 per cent of the country's GDP and nearly 20 per cent of its manufacturing GDP. Automobiles are among Japan's biggest exports and the sector's performance is crucial for the country's overall economic health. And when it comes to Japan-US trade, where Tokyo has a substantial surplus, it is in the auto sector where Washington DC faces most of its trade deficit. The Japanese negotiators made some eight trips to Washington DC over the course of these last six months to get a deal that is favourable to them. While they did end up making a sizable commitment to investment in the US, alongside the concessions on the agri side involving rice and other farm products, the big prize really was auto. And that's where the Japanese negotiators have maxed out the outcomes, which could set the stage for more Toyotas and Hondas flowing into the American market. Interestingly, while the Americans have gone to town describing the deal as a big win, citing both the $550 billion investment pledge and agri market access as wins, the Japanese have maintained a studied silence in the aftermath of the deal, despite immense political pressure on the embattled Shigeru Ishiba government after the bruising electoral setback. Trump's tariff negotiations have largely been about leverage, given how the US President has used tariffs as a way of getting countries to the table on issues such as fentanyl inflows or how they deal with a military conflict. Revenue is yet another strong consideration for the Trump administration going forward, given that the six months that these tariffs have been in place, they have raised $100 billion so far, according to estimates attributed to the US Commerce department. The other stated objective is to bring manufacturing and jobs back to the US: how that plays out is entirely another story. What the Japan deal means goes beyond basic numbers, since there's a personal connotation here for Trump. For a man who is generally fickle with his views, tariffs are an issue where Trump's been uncharacteristically consistent. And Japan was at the centre of Trump's worldview in his early years when the American businessman was still formulating his views on policy matters such as trade. In 1987, long before he voiced any intention to run for public office, Trump took out a full-page newspaper ad warning that Japan was 'taking advantage' of the US, while pointing to the massive trade deficit between the two countries. Like most things with Trump, this was essentially a personal issue, which likely stemmed from the fact that the real estate developer had, just a few days prior to these ads, lost out on a bid for a grand piano in New York to the representative of a Japanese trading house. His views on tariffs have endured through these years, even though there is very little economic logic to the imposition of large scale tariffs by a country like America. Automakers from Japan, Trump said in that ad, were ripping America off. It's a full circle now, when, ironically, Japanese carmakers seem to be big beneficiaries under a new deal that Japan signed up for under Trump's watch. This is especially so, given the comparative advantage that the Japanese carmakers seem to have now. Over the last quarter of a century, the American cars industry has worked with policymakers to create an integrated supply chain with Canada and Mexico. Some parts of a car sold in the US are made in Canada, others in Mexico, and quite a lot are made in the US. A typical pickup truck made by the big three US auto majors – GM, Ford and Chrysler – moves back and forth across borders because of this integrated supply chain – sometimes up to seven times across the three borders. Now, with tariffs of 25 per cent on both countries, each time an auto part moves, it will get tariffed. The price for an F-150 pickup truck, according to industry estimates, could go up from $10,000-$12,000 for a car that retails at around $50,000. So, now, while the North American car industry will be at a disadvantage given the higher duties on Mexico and Canada, the Japanese car industry can bring in cars and car parts into the US at a much lower tariff. What's even more contradictory is the fact that it was Trump who replaced the North American Free Trade Agreement trade deal between the US, Canada, and Mexico with the new USMCA deal during his first term in 2018-19. Trump's imposition of tariffs on Canada and Mexico now flagrantly violate his own USMCA, and highlight his disregard for negotiated trade agreements. For New Delhi, which is currently engaged in extended negotiations with the US, the manner in which Japanese negotiators dangled multiple carrots, including the phased-out investment pledge and concessions on agri products, to win an evidently favourable deal on auto offers some lessons in negotiating. The India-UK trade deal too has some takeaways for the US deal. The UK deal showed that Indian negotiators are willing to offer concessions in areas such as agriculture and public procurement – contentious political issues where there is scope to give with factoring in some safeguards. With the US, talks have faced hurdles over agri products, with the Americans pushing for market access for genetically modified products such as soya and corn, along with broad-based access across sectors. The willingness to offer concessions on some issues that have traditionally heralded red-lines for India could mean more leeway to extract concessions on other areas of interest, like Japan managed for its auto sector. While the trade deal with the US is likely to be less focused on sectors and more focused on the headline number unlike the UK deal, India is likely to push for market access in labour-intensive sectors, while trying to ensure a significant tariff differential compared to its Asian peers. Now, if the final tariff deal offered to India by Washington DC is between 10 per cent and 15 per cent, the tariff points offered to the UK and Japan, New Delhi should have reasons to be satisfied. The tariff advantage starts to diminish if the tariff goes over 15 per cent and inches up closer to 20 per cent, as was offered by the US to Vietnam. A transhipment clause, of the kind slapped on Vietnam, could be a problem for India, given that a lot of Indian exports have inputs and intermediate goods in sectors such as pharma, engineering goods and electronics coming in from outside, including China. Also, clarity on the final American duty offer on China is a number that negotiators will be looking at, given the implicit assumption in New Delhi that the Trump administration will maintain a tariff differential. For Indian negotiators, other tariffs, over and above the US baseline tariffs of 10 per cent and the sectoral tariffs on steel and aluminium, is an added complication. Sectoral tariffs such as the 50 per cent on steel, aluminium and copper are already impacting India's exports to the US, and Trump's threat of steep tariffs on BRICS countries over them buying Russian oil is a concern. India has shown some degree of realism in opening up segments of imports that are in areas where the country has been weak or those goods are needed as intermediate goods. That is being seen as a positive step, given India's tariff structure currently has rigidities that include high tariffs on inputs and intermediate goods, which acts as a disadvantage to domestic players. While mobility of workers, which had been a bone of contention as India sought improved access for its services sector amid heightened sensitivities in a post-Brexit UK, both countries committed to some concessions. That could be the case in the negotiations with the US too. While continuing to maintain some regulatory carve-outs, such as in legal services, taxation, and national security, Indian negotiators would do well to secure gains in this area. With the UK, commitments gained by India on professional mobility were largely limited in scope, if one were to leave out the positives of the Double Contributions Convention. Expectations from a US deal could be higher on the Indian side. Anil Sasi is National Business Editor with the Indian Express and writes on business and finance issues. He has worked with The Hindu Business Line and Business Standard and is an alumnus of Delhi University. ... Read More
