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The Mainichi
3 hours ago
- Automotive
- The Mainichi
Business leaders laud Japan-US trade deal, admit ongoing challenges
TOKYO (Kyodo) -- Japanese business leaders on Wednesday praised the government for reaching a trade deal with the United States under which tariff rates on Japanese cars and other products will be set at 15 percent, while acknowledging it will still cause hardship for firms. "The persistent negotiations paid off," Yoshinobu Tsutsui, chairman of the Japanese Business Federation, the country's most powerful business lobby also known as Keidanren, told reporters, adding his group has "high regard" for the outcome. The tariffs under the deal, which was first announced by U.S. President Donald Trump on Tuesday, are lower than initially proposed. They were agreed before an Aug. 1 deadline set by the United States to impose a "reciprocal" 25 percent tariff on Japanese goods. "I have yet to look into the details, but would like to provide support (from Keidanren) on multiple fronts," Tsutsui said. While some companies have expressed hope that the potential adverse effects of the levies would be eased, others said challenges were likely to persist as they nevertheless remained high. "The evasion of even higher tariffs across the board may act as a crucial breakwater for companies," said Takeshi Niinami, chairman of the Japan Association of Corporate Executives. "We must work toward rebuilding a free-trade system," he added, also warning of the spread of the "America First" approach. While saying the deal helped remove U.S. tariff uncertainties, Ken Kobayashi, chairman of the Japan Chamber of Commerce and Industry, called the 15 percent tariffs "regrettable." "The effects of this new burden of tariffs will hit not just exporter firms, but also those that shoulder the domestic supply chain and are largely made up of small and medium-sized firms that are responsible for supplying parts and logistics," he said in a statement. The Trump administration's 25 percent additional auto tariff was one of the biggest sticking points in the trade talks. Combined with the 2.5 percent rate already in place, a total tariff of 27.5 percent was imposed on imported passenger vehicles in April. Following the latest announcement, a source from a major automaker expressed dismay at the deal, noting tariffs prior to Trump's inauguration had stood at just 2.5 percent. Meanwhile, a source from an electronics manufacturer noted that "compared with the 25 percent tariff that was slated to hit on Aug. 1, 15 percent is slightly better."
The Mainichi
4 hours ago
- Business
- The Mainichi
Japan, EU agree to boost economic security, defense cooperation
TOKYO (Kyodo) -- The leaders of Japan and the European Union agreed Wednesday on new initiatives to strengthen cooperation in economic security, trade and defense, amid uncertainty over U.S. tariff policies and China's growing military and economic influence. Prime Minister Shigeru Ishiba, European Council President Antonio Costa and European Commission President Ursula von der Leyen said in a joint statement issued after their summit in Tokyo that they will establish a "Japan-EU Competitiveness Alliance" to collaborate in ensuring economic security and bolstering their industries. The leaders pledged to expand the ministerial-level Japan-EU High-Level Economic Dialogue to better align their strategies as they work to strengthen supply chains for key materials, emphasizing the importance of promoting free trade and multilateralism. They also agreed to work together toward launching a future dialogue on defense industry cooperation and to begin official negotiations on an accord between Japan and the EU to facilitate the exchange of classified security information. The talks come as U.S. President Donald Trump's sweeping tariffs have been shaking global economies, prompting Japan, the EU, and other major trading partners of the United States to negotiate with it while also bolstering ties among themselves. Earlier in the day, Tokyo announced a deal with Washington on 15 percent country-specific levies, ahead of an Aug. 1 deadline for the U.S. imposition of "reciprocal" 25 percent duties on Japanese goods. As part of retaliatory measures in a tit-for-tat tariff war with the United States, China has tightened its control over exports of critical minerals, including rare earths, fueling fears that supply chains of those items could be affected. Japan and European nations have been deepening defense partnerships under a vision that the security of the Indo-Pacific region and that of Europe are inseparable, sharing concerns over China's growing assertiveness in the Indo-Pacific and Russia's invasion of Ukraine, with North Korean soldiers joining. Ahead of the summit, Costa and von der Leyen visited the World Exposition venue in Osaka in western Japan on Tuesday. They are scheduled to hold talks with Chinese President Xi Jinping in Beijing on Thursday.
The Mainichi
13 hours ago
- Business
- The Mainichi
Visa told by Japan antitrust watchdog to reform credit info system
TOKYO (Kyodo) -- Japan's antitrust watchdog said Tuesday it had told Visa Worldwide Pte Ltd. to reform its business practices after concluding that the firm restricted and pressured card companies to use its credit information system. It marks the first administrative action taken by the Japan Fair Trade Commission against a credit card company. The commission said global credit card brand Visa Inc.'s Singaporean unit, which manages the Asia-Pacific region including Japan, had charged higher fees to other credit card firms that did not use its network to check credit information. The commission said the Visa unit has submitted plans to improve its practices, adding that it has accepted the plans. The company was exempted from facing fines or other punitive measures under the antimonopoly law. Visa Worldwide said in a comment "the plans will be fulfilled and a structure based on strong compliance will be maintained." According to the Japan Consumer Credit Association, as of 2020, the Visa credit card brand accounted for about half of the market share in Japan. The total amount of credit card transactions in the country in 2024 stood at 116 trillion yen ($785 billion). Credit card transactions involve an issuing company and management company, which both utilize a trusted reference system when a transaction is made, according to the watchdog. Interchange fees, typically set by global brands, are paid by the management company to the issuing company during a transaction, while the issuing company pays a service charge to a different company -- in this case Visa Worldwide -- providing the reference system. While Visa Worldwide had applied preferential rates under certain requirements, it altered the conditions from no later than November 2021 to necessitate the use of its network, leading some companies to switch to the system under Visa despite it costing more than others. Visa's practice is believed to have been aimed at increasing revenue by excluding competitors from the market. Japanese authorities had been investigating allegations the practice violated the antimonopoly law, which prohibits companies in a dominant position from imposing unfair trading terms on firms with a weaker standing. Tuesday's administrative action against Visa Worldwide does not mean that the practice "violated" the law. Under the plans submitted to the commission, the Visa unit will restore conditions for preferential rates to previous iterations. A third-party entity, approved by the watchdog, will also check for improvements and report to the commission over the next five years.
The Mainichi
13 hours ago
- Automotive
- The Mainichi
Japan, US reach deal on 15% auto, 'reciprocal' tariffs: PM
TOKYO (Kyodo) -- Japan and the United States have agreed on a trade deal under which tariff rates on Japanese cars and other products will be set at 15 percent, lower than those initially proposed by President Donald Trump, Prime Minister Shigeru Ishiba said Wednesday. Speaking to reporters, Ishiba said Japan will also increase rice imports from the United States within what is known as a "minimum access" quota. But he emphasized that Japan made no concessions that would undermine the country's agricultural sector. The agreement came after Japan's chief negotiator Ryosei Akazawa held another round of tariff talks in Washington. Trump imposed a 25 percent levy on cars from Japan and other countries, and threatened to introduce a country-specific 25 percent "reciprocal" tariff on Japan from Aug. 1.
The Mainichi
a day ago
- Business
- The Mainichi
EU leader aims to elevate ties with Japan to 'new level' at summit
TOKYO (Kyodo) -- European Council President Antonio Costa said Tuesday the European Union aims to "upgrade" its relationship with Japan to "a new level" through an upcoming summit in Tokyo, focusing on trade and security. Costa said in an interview with Kyodo News that the EU and Japan will "continue to work together, standing up for the international rules-based order and free and fair trade," amid concerns over high U.S. tariffs under President Donald Trump. Costa, who assumed his post in December, and European Commission President Ursula von der Leyen are set to hold talks with Japanese Prime Minister Shigeru Ishiba in Tokyo on Wednesday after visiting the World Exposition in Osaka in western Japan, where the interview was held. At the meeting, the leaders are expected to announce the creation of a "Japan-EU Competitiveness Alliance" to bolster their industries by advancing trade and economic security cooperation, according to diplomatic sources. Costa said that the new partnership will be "the most important deliverable" from the summit, and that the EU and Japan must work not only to tackle their common challenges but also pursue "the profit of our synergy, of our cooperation." "Japan is our closest partner in the Pacific," Costa said, adding that he will discuss with Ishiba the possibility of the 27-member bloc's cooperation regarding a vast trans-Pacific free trade agreement that involves Japan, Britain and 10 other nations. On the defense front, Costa emphasized that the EU will ramp up collaboration with Japan to make both Europe and the Asian nation "better equipped." He added that security in the Pacific and Europe is "interlinked," referring to Russia's invasion of Ukraine. North Korean troops have been sent to support Moscow's war efforts. After staying in Japan, Costa and von der Leyen are scheduled to hold talks with Chinese President Xi Jinping in Beijing on Thursday.
