Latest news with #Ryosei Akazawa
Reuters
4 hours ago
- Business
- Reuters
FACTBOX Key facts on the US-Japan tariff deal
TOKYO, July 23 (Reuters) - U.S. President Donald Trump and Japanese Prime Minister Shigeru Ishiba on Wednesday said they had struck a trade deal that will include a 15% tariff on imports from Japan. Here's what we know so far. In a post on Truth Social, Trump said the deal would include $550 billion of Japanese investments in the United States, improved market access into Japan for American goods including automobiles, rice and other agricultural products. Japanese autos, which account for more than a quarter of all the country's exports to the U.S., will also be subject to a 15% tariff, down from a punishing 25%, Prime Minister Shigeru Ishiba said. The U.S. has also agreed to not impose any caps on auto imports, he added. Japan will keep its existing tariffs on imports of U.S. agricultural products and maintain a minimum market access system that limits the amount of rice that it buys from overseas including the U.S., he said. A Trump administration official said Japan would increase its purchases of U.S. agricultural products such as rice. The $550 billion of investment was the upper limit of loan investments and guarantees that Japanese government state banks and agencies would make available to companies to help companies build resilient supply chains. Japan's top trade negotiator Ryosei Akazawa said steel and aluminium, subject to a separate 50% tariff, were not included in the deal. Akazawa has traveled to the U.S. eight times since April for trade talks with U.S. officials including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. The latest visit came days before an August 1 deadline when the Trump Administration said it would impose a 25% tariff on all Japanese imports. The U.S. is Japan's biggest export market. Economists had estimated that Trump's tariffs could lower Japan's GDP by as much as a percentage point. The tariff agreement comes three days after Ishiba's administration lost its upper house majority in an election, triggering calls for his resignation including from within his own ruling Liberal Democratic Party, according to local media reports. In the wake of that election defeat, Ishiba said he would stay in place to push for a trade agreement with the U.S. and to tackle Japan's looming economic problems. Ishiba will announce his intention to step down by the end of August, the Mainichi newspaper reported on Wednesday. Japanese automaker shares led the Nikkei share average higher, which rose by 2% in early trading following the announcement. Toyota Motor Corp's (7203.T), opens new tab shares jumped by 10% with Honda Motor Co (7267.T), opens new tab up by 9%. The benchmark 10-year Japanese bond futures tumbled as much as 0.92 yen to 137.68 yen, the lowest since March 28.
CNA
5 hours ago
- Automotive
- CNA
Tokyo's Nikkei leads Asian rally after Japan-US trade deal
HONG KONG: Tokyo stocks rallied with the yen Wednesday (Jul 23) after Japan and the United States finally hammered out a trade deal to slash Donald Trump's tariffs, including those on the crucial car sector. Investors were also cheered by news that Washington had reached agreements with Indonesia and the Philippines, stoking optimism that other countries will achieve deals to avoid the worst of the US president's levies. Despite a lack of deals being made leading up to Trump's self-imposed Aug 1 cut-off date, equity markets have been on the march in recent weeks on optimism that governments will eventually get over the line. Japan had been one of those yet to sign, despite a string of trips to Washington by trade envoy Ryosei Akazawa, dampening investor sentiment in Tokyo. But Trump said Tuesday that officials had agreed to a "massive" deal that would include a 15 per cent tariff on imports from Japan, down from the previously threatened 25 per cent. The pact also saw the 25 per cent levy on autos - a major export to the United States - slashed to 15 per cent. "We just completed a massive Deal with Japan, perhaps the largest Deal ever made," Trump announced on his Truth Social platform. "Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90 per cent of the Profits." He did not provide further details on the investment plan, but claimed the deal "will create Hundreds of Thousands of Jobs". Japanese Prime Minister Shigeru Ishiba said that he needed to examine the deal before commenting. Akazawa wrote on X: "Mission accomplished." Traders poured back into the market, pushing the Nikkei up more than 3 per cent thanks to soaring automakers. Tokyo and Mitsubishi rocketed around 12 per cent and Nissan jumped more than 9 per cent. The yen strengthened to 146.20 per dollar - compared with close to 148 on Tuesday. The unit had already enjoyed a recent tick-up after Ishiba vowed to remain in office despite a devastating weekend election loss. Trump also hailed an agreement with Manila that will see the toll on Philippine goods lowered by one percentage point to 19 per cent, while tariffs on Indonesia were slashed from 32 per cent to 19 per cent. Shares in Manila and Jakarta rose. The announcements boosted hopes that other deals could be in the pipeline before next Friday's deadline, though talks with the European Union and South Korea remain elusive for now. Still, US Treasury Secretary Scott Bessent said he would meet his Chinese counterparts in Stockholm next week for talks, as a separate mid-August deadline approaches for US levies on Beijing to snap back to steeper levels. Elsewhere in Asia, Hong Kong built on its 2025 surge to hit its highest level since late 2021, while Shanghai, Sydney, Singapore and Taipei were also well up. Seoul was flat and Wellington dipped. The advances came after a broadly positive day on Wall Street where the S&P 500 hit another peak but the Nasdaq snapped a six-day streak of records.
Yahoo
6 hours ago
- Business
- Yahoo
Tokyo's Nikkei leads Asian rally after Japan-US trade deal
Tokyo stocks rallied with the yen Wednesday after Japan and the United States finally hammered out a trade deal to slash Donald Trump's tariffs, including those on the crucial car sector. Investors were also cheered by news that Washington had reached agreements with Indonesia and the Philippines, stoking optimism that other countries will achieve deals to avoid the worst of the US president's levies. Despite a lack of deals being made leading up to Trump's self-imposed August 1 cut-off date, equity markets have been on the march in recent weeks on optimism that governments will eventually get over the line. Japan had been one of those yet to sign, despite a string of trips to Washington by trade envoy Ryosei Akazawa, dampening investor sentiment in Tokyo. But Trump said Tuesday that officials had agreed to a "massive" deal that would include a 15 percent tariff on imports from Japan, down from the previously threatened 25 percent. The pact also saw the 25 percent levy on autos -- a major export to the United States -- slashed to 15 percent. "We just completed a massive Deal with Japan, perhaps the largest Deal ever made," Trump announced on his Truth Social platform. "Japan will invest, at my direction, $550 Billion Dollars into the United States, which will receive 90% of the Profits." He did not provide further details on the investment plan, but claimed the deal "will create Hundreds of Thousands of Jobs." Japanese Prime Minister Shigeru Ishiba said that he needed to examine the deal before commenting. Akazawa wrote on X: "Mission accomplished." Traders poured back into the market, pushing the Nikkei up more than two percent thanks to soaring automakers. Tokyo and Mitsubishi rocketed around 12 percent and Nissan jumped more than nine percent. The yen strengthened to 146.20 per dollar -- compared with close to 148 Tuesday. The unit had already enjoyed a recent tick-up after Ishiba vowed to remain in office despite a devastating weekend election loss. Trump also hailed an agreement with Manila that will see the toll on Philippine goods lowered by one percentage point to 19 percent, while tariffs on Indonesia were slashed from 32 percent to 19 percent. Shares in Manila and Jakarta rose. The announcements boosted hopes that other deals could be in the pipeline before next Friday's deadline, though talks with the European Union and South Korea remain elusive for now. Still, US Treasury Secretary Scott Bessent said he would meet his Chinese counterparts in Stockholm next week for talks, as a separate mid-August deadline approaches for US levies on Beijing to snap back to steeper levels. Elsewhere in Asia, Hong Kong built on its 2025 surge to hit its highest level since late 2021, while Shanghai, Sydney, Singapore and Taipei were also well up. Seoul was flat and Wellington dipped. The advances came after a broadly positive day on Wall Street where the S&P 500 hit another peak but the Nasdaq snapped a six-day streak of records. Eyes are also on the release of earnings from Google parent Alphabet and other tech giants including Tesla and Intel. - Key figures at around 0200 GMT - Tokyo - Nikkei 225: UP 2.7 percent at 40,868.01 Hong Kong - Hang Seng Index: UP 0.6 percent at 25,287.68 Shanghai - Composite: UP 0.5 percent at 3,599.20 Dollar/yen: DOWN at 146.50 yen from 146.66 yen Tuesday Euro/dollar: DOWN at $1.1740 from $1.1755 Pound/dollar: DOWN at $1.3525 from $1.3532 Euro/pound: DOWN at 86.80 pence from 86.84 pence West Texas Intermediate: UP 0.3 percent at $65.52 per barrel Brent North Sea Crude: UP 0.3 percent at $68.79 per barrel New York - Dow: UP 0.4 percent at 44,502.44 (close) London - FTSE 100: UP 0.1 percent at 9,023.81 (close) dan/mtp
CBC
6 hours ago
- Automotive
- CBC
Trump announces trade deal with Japan that would see 15% tariff on all goods
U.S. President Donald Trump on Tuesday said the U.S. and Japan have struck a deal that will lower the hefty tariffs Trump had threatened to impose on goods from its Asian ally while extracting commitments for Japan to invest $550 billion US in the United States and open its markets to American goods. The agreement — including a 15 per cent tariff on all imported Japanese goods, down from a proposed 25 per cent — is the most significant of the string of trade deals the White House has reached ahead of an approaching Aug. 1 deadline for higher levies to kick in. "This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan," Trump said on his Truth Social platform. Industry and government officials briefed on the agreement said the deal also lowers the tariff to 15 per cent from 25 per cent on Japanese autos, which account for more than a quarter of all the country's exports to the U.S. Trump's announcement followed a meeting with Japan's top tariff negotiator, Ryosei Akazawa, at the White House on Tuesday, according to a person familiar with the matter. "#Mission Complete," Akazawa wrote on the social media platform X. North American automakers raise alarm Two-way trade between the two countries totalled nearly $230 billion US in 2024, with Japan running a trade surplus of nearly $70 billion US. Japan is the fifth-largest U.S. trading partner in goods, U.S. Census Bureau data shows. The announcement sent stocks in Japan higher, led by big gains in automakers. Honda, Toyota and Nissan all gained eight per cent or more, and U.S. equity index futures gained ground. The yen strengthened against the American dollar. But U.S. automakers signalled their unhappiness with the deal, raising concerns about a trade regime that could cut tariffs on auto imports from Japan to 15 per cent while leaving tariffs on imports from Canada and Mexico at 25 per cent. Matt Blunt, who heads the American Automotive Policy Council, which represents General Motors, Ford and Chrysler-parent company Stellantis, said that "any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American-built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. autoworkers." Reuters could not immediately confirm the elements of the deal announced by Trump, and details were scant. The White House did not immediately respond to a request for additional details. Speaking early on Wednesday in Tokyo, Japanese Prime Minister Shigeru Ishiba said he had received an initial report from his trade negotiator in Washington but declined to comment on the specifics of the negotiation. Ishiba is under intense political pressure in Japan, where the ruling coalition was set back by losing control of the upper house in an election on Sunday. He said he couldn't say how a trade deal would affect his decision on whether to step down from office until he saw the details. Announcement follows Trump pattern Trump's announcement on Tuesday was of a pattern with some previous agreements. He announced the deal on social media shortly after a meeting or a phone call with a foreign official, leaving many key details a mystery — and before the other country issued its own proclamations. Nearly three weeks after Trump announced an agreement with Vietnam — in similar fashion — no formal statement has been released by either country spelling out the particulars of the deal that was ostensibly reached. LNG joint venture Speaking later Tuesday evening at the White House, Trump also expressed fresh optimism that Japan would form a joint venture with the U.S. to support a gas pipeline in Alaska long sought by his administration. "We concluded the one deal ... and now we're going to conclude another one because they're forming a joint venture with us at, in Alaska, as you know, for the LNG," Trump told lawmakers at the White House. "They're all set to make that deal now." Japanese officials had initially doubted the practicality of the project but warmed to it — and a range of other investments dear to Trump — as a potential incentive to resolve trade disputes with Washington. Trump aides are feverishly working to close trade deals ahead of an Aug. 1 deadline that the president has repeatedly pushed back under pressure from markets and intense lobbying by industry. By that date, countries are set to face steep new tariffs beyond those Trump has already imposed since taking office in January. While Trump has said that unilateral letters declaring what rate would be imposed are tantamount to a deal, his team has nonetheless raced to close agreements. Trump has announced framework agreements with Britain, Vietnam, Indonesia and paused a tit-for-tat tariff battle with China, though details are still to be worked out with all of those countries.
Arab News
7 hours ago
- Automotive
- Arab News
Japan PM says needs to examine details of US trade deal
TOKYO: Japanese Prime Minister Shigeru Ishiba said Wednesday that he needed to examine the details of a trade deal announced by US President Donald Trump before commenting. 'As for what to make of the outcome of the negotiations, I am not able to discuss it until after we carefully examine the details of the negotiations and the agreement,' Ishiba told reporters in Tokyo after Trump's announcement. 'As the government, we think that will protect national interests,' he told reporters. 'We just completed a massive Deal with Japan, perhaps the largest Deal ever made,' Trump wrote on his Truth Social platform. Japanese imports were already subject to a tariff of 10 percent and Trump had announced this would rise to 25 percent on August 1 if there was no deal. Imports of 25 percent on Japanese auto imports were already in place, as well as 50 percent on steel and alumiunium. Japanese media reported that the levy on autos had now been reduced to 15 percent, sending Japanese auto stocks soaring on Wednesday morning in Tokyo. Trump's announcement came as Ishiba's trade envoy Ryosei Akazawa was on his eighth trip to Washington where he met senior US officials. Akazawa said on X: 'Mission accomplished.'
