Latest news with #TakuyaKarube
Kyodo News
23-05-2025
- Business
- Kyodo News
G7 finance chiefs show unity despite tensions over Trump's tariffs
By Takuya Karube, KYODO NEWS - 2 hours ago - 11:55 | All, World The finance chiefs of the Group of Seven democracies on Thursday showcased their unity in dealing with common challenges ranging from economic imbalances to the future of Ukraine, despite global trade tensions following the imposition of a barrage of tariffs by U.S. President Donald Trump. Around a month before it hosts a summit of the G7 leaders, Canada, the country perhaps most irked by Trump's confrontational trade policies, tried its best to prevent a weakening of the group's decades-old cooperation, downplaying differences including over how to push Russia to end its invasion of Ukraine. "In the face of multiple complex global challenges, we are committed to pursuing our shared policy objectives," the G7 finance ministers and central bank governors said in a joint statement released after two days of discussions in the Canadian Rocky Mountain resort town of Banff. While refraining from any mention of Trump's tariff regime, the finance chiefs of the group, comprising Britain, Canada, France, Germany, Italy, Japan and the United States, plus the European Union, agreed that they can leverage their "strong economic relationships" to tackle issues such as "excessive imbalances" in the global economy. Bank of Japan chief Kazuo Ueda said, nevertheless, that he and many of his G7 counterparts shared their concerns about the potential effects of Trump's sweeping tariffs and viewed the economic uncertainty stemming from the measures as continuing. Ueda said at a press conference that the situation had not changed, despite recent preliminary trade deals struck by the United States with Britain and China. At last year's G7 summit in Italy, the leaders reaffirmed the group's "commitment to the rules-based, free and fair, equitable, and transparent multilateral trading system." Their finance officials also made similar pledges prior to Trump's return to the White House. But the Banff communique omitted the group's oft-repeated promotion of free trade, apparently due to the Trump administration's economic agenda. Asked the reason for the omission, Canadian Finance Minister Francois-Philippe Champagne stressed there is "a lot that we can achieve also together." Speaking at a closing press conference, Champagne said he believes the communique "sends a very clear signal to the world" that the G7 is "united in purpose and in action." The White House announced Thursday that Trump will attend the G7 summit in nearby Kananaskis from June 15 to 17. In addition to gauging the health of the global economy, the finance chiefs discussed China's industrial overcapacity and nonmarket practices, according to G7 officials. Without naming China, the communique said the G7 thinks it is necessary to have a common understanding of how nonmarket practices, such as massive government subsidies, aggravate imbalances, contribute to overcapacity and affect the economic security of other countries. "We agree on the importance of a level playing field and taking a broadly coordinated approach to address the harm caused by those who do not abide by the same rules and lack transparency," it said. Other issues discussed included the increase in low-value international shipments, coming particularly from Chinese e-commerce companies selling cheaper products that are still duty-free in many countries. They said such shipments were addressed not just in terms of tax collection but also in the context of customs security, given that they are increasingly used to smuggle illegal substances. In their first communique since Trump's nonconsecutive second term started in January, the finance ministers and central bank governors, including U.S. Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell, also condemned Russia's continued "brutal" war in Ukraine, without referring to it as "illegal." "The G7 remains committed to unwavering support for Ukraine in defending its territorial integrity and right to exist, and its freedom, sovereignty and independence toward a just and durable peace," the document said. The countries said they will consider "options to maximize pressure such as further ramping up sanctions" if a cease-fire is not agreed between Moscow and Kyiv. Ukrainian Finance Minister Sergii Marchenko was invited to join part of the G7 gathering in person, at a time when there has been little progress in talks toward ending the war. Related coverage: Japan, U.S. agree dollar-yen rate mirrors economic fundamentals 81% in Japan feel "uneasy" about Trump's 2nd presidency: poll
Kyodo News
08-05-2025
- Business
- Kyodo News
U.S. Fed holds key rate steady, saying inflation risk rising
By Takuya Karube, KYODO NEWS - 7 hours ago - 08:11 | All, World The U.S. Federal Reserve on Wednesday kept its key interest rate steady for a third straight policy meeting, saying the risk of inflation has increased, while officials around the world brace for more uncertainty in the economic outlook stemming from President Donald Trump's tariff policy. The Fed's unanimous decision to maintain its target range for the federal funds rate, which commercial banks charge each other for overnight loans, at 4.25-4.50 percent came as Trump has pressured the central bank a handful of times to lower borrowing costs for consumers while claiming there is virtually no inflation. "Uncertainty about the economic outlook has increased further," the Federal Open Market Committee said in a statement after its two-day policy meeting, the first since Trump unveiled on April 2 his broadest package of tariffs, targeting almost every country in the world. While acknowledging that economic activity has continued to expand at a "solid pace" and labor market conditions are still "solid," the Fed's policy-setting committee strengthened its warning about uncertainty, adding "further" to the phrase seen after the previous meeting in March. It also said that "the risks of higher unemployment and higher inflation have risen." Fed Chair Jerome Powell said at a press conference that the central bank does not have to be in a hurry to make a move, suggesting the need to adopt a wait-and-see stance until the impacts of Trump's tariffs show up in economic data. "Ultimately we think our policy rate is in a good place to stay as we await further clarity on tariffs and ultimately implications for the country," he said. Many economists have projected significant slowdowns in global and U.S. economic growth due to the impact of the tariffs, which are likely to fuel inflation and disrupt supply chains for major industries. Official data showed last week that the U.S. economy contracted at an annual rate of 0.3 percent in the first three months of this year, compared with a 2.4 percent expansion in the fourth quarter of 2024. The U.S. economy saw its first shrinkage in three years due to a surge in imports as American companies stocked up before the Trump administration's duties came into force. In the latest updated quarterly summary of economic projections, released following the previous policy meeting, most policymakers of the U.S. central bank predicted the key rate will be 3.9 percent at the end of 2025, suggesting two possible rate cuts through the year, no change from the median forecast in December. At the time, the Fed also lowered its U.S. economic growth forecast. It projected the U.S. gross domestic product to grow 1.7 percent from a year earlier, down from the previous forecast of 2.1 percent. Powell has been cautious about cutting the interest rate, especially since Trump unveiled his array of tariffs, which include a 10 percent duty on all imported goods as well as additional, country-specific levies. Despite saying recently that he does not plan to fire Powell, Trump has repeatedly criticized him, sparking concern that the Fed's independence is under threat. When asked Wednesday whether Trump's repeated calls on the Fed to make rate cuts have affected its monetary policy, Powell said, "We're always going to do the same thing, which is we're going to use our tools to foster maximum employment and price stability for the benefit of the American people." "We're always going to consider only the economic data, the outlook, the balance of risks and that's it," he said. "That's all we're going to consider. So, it really doesn't affect either our job or the way we do it." Related coverage: U.S. eyes de-escalation as trade talks with China set for weekend ASEAN-plus-3 finance chiefs warn of protectionism after U.S. tariffs
Kyodo News
08-05-2025
- Business
- Kyodo News
U.S. Fed holds key rate steady, saying inflation risk rising
By Takuya Karube, KYODO NEWS - 2 hours ago - 08:11 | All, World The U.S. Federal Reserve on Wednesday kept its key interest rate steady for a third straight policy meeting, saying the risk of inflation has increased, while officials around the world brace for more uncertainty in the economic outlook stemming from President Donald Trump's tariff policy. The Fed's unanimous decision to maintain its target range for the federal funds rate, which commercial banks charge each other for overnight loans, at 4.25-4.50 percent came as Trump has pressured the central bank a handful of times to lower borrowing costs for consumers while claiming there is virtually no inflation. "Uncertainty about the economic outlook has increased further," the Federal Open Market Committee said in a statement after its two-day policy meeting, the first since Trump unveiled on April 2 his broadest package of tariffs, targeting almost every country in the world. While acknowledging that economic activity has continued to expand at a "solid pace" and labor market conditions are still "solid," the Fed's policy-setting committee strengthened its warning about uncertainty, adding "further" to the phrase seen after the previous meeting in March. It also said that "the risks of higher unemployment and higher inflation have risen." Fed Chair Jerome Powell said at a press conference that the central bank does not have to be in a hurry to make a move, suggesting the need to adopt a wait-and-see stance until the impacts of Trump's tariffs show up in economic data. "Ultimately we think our policy rate is in a good place to stay as we await further clarity on tariffs and ultimately implications for the country," he said. Many economists have projected significant slowdowns in global and U.S. economic growth due to the impact of the tariffs, which are likely to fuel inflation and disrupt supply chains for major industries. Official data showed last week that the U.S. economy contracted at an annual rate of 0.3 percent in the first three months of this year, compared with a 2.4 percent expansion in the fourth quarter of 2024. The U.S. economy saw its first shrinkage in three years due to a surge in imports as American companies stocked up before the Trump administration's duties came into force. In the latest updated quarterly summary of economic projections, released following the previous policy meeting, most policymakers of the U.S. central bank predicted the key rate will be 3.9 percent at the end of 2025, suggesting two possible rate cuts through the year, no change from the median forecast in December. At the time, the Fed also lowered its U.S. economic growth forecast. It projected the U.S. gross domestic product to grow 1.7 percent from a year earlier, down from the previous forecast of 2.1 percent. Powell has been cautious about cutting the interest rate, especially since Trump unveiled his array of tariffs, which include a 10 percent duty on all imported goods as well as additional, country-specific levies. Despite saying recently that he does not plan to fire Powell, Trump has repeatedly criticized him, sparking concern that the Fed's independence is under threat. When asked Wednesday whether Trump's repeated calls on the Fed to make rate cuts have affected its monetary policy, Powell said, "We're always going to do the same thing, which is we're going to use our tools to foster maximum employment and price stability for the benefit of the American people." "We're always going to consider only the economic data, the outlook, the balance of risks and that's it," he said. "That's all we're going to consider. So, it really doesn't affect either our job or the way we do it." Related coverage: U.S. eyes de-escalation as trade talks with China set for weekend ASEAN-plus-3 finance chiefs warn of protectionism after U.S. tariffs
Kyodo News
30-04-2025
- Automotive
- Kyodo News
Trump eases impact of auto tariffs on 100th day in office
By Takuya Karube, KYODO NEWS - 4 hours ago - 12:40 | All, World U.S. President Donald Trump on Tuesday eased the impact of his new 25 percent tariffs on the auto industry as part of efforts to help manufacturers relocate supply chains for car parts used in the United States over the next two years. In another reversal of Trump's extensive additional tariffs, the relief, allowing all American and foreign automakers producing vehicles in the United States to claim some reimbursements, was announced as he marked the 100th day of his nonconsecutive second term. "They took in parts from all over the world. I don't want that. I want them to make their parts here, but I gave them a little bit of time," Trump said in a speech to thousands of supporters at a community college north of Detroit, home to the American auto industry. The temporary alleviation of some of the tariff burden came after automakers argued that due to the complexity of their supply chains it would take time to procure domestically all of the parts necessary to manufacture vehicles in the United States. Along with consumers, the auto industry has voiced concern that Trump's hefty tariffs could sharply raise car prices. Under the relief, a carmaker will be allowed to offset the tariffs for 15 percent of the suggested retail price of an automobile assembled in the United States during the first year of the tariffs and 10 percent in the second year. Accordingly, automakers will be able to apply for a reimbursement of up to 3.75 percent of the value of each U.S.-made vehicle in the first year and 2.5 percent in the second year, with the offset arrangement stopping then, according to White House and Commerce Department officials. In other words, for the first year, they said all cars finished in the United States with 85 percent domestic and U.S.-Canada-Mexico free trade agreement-compliant content will face no tariffs. Under the scheme, the officials added, automakers will only pay one tariff -- the highest rate that applies to their goods -- without being hit by any of the Trump administration's other new duties, such as a 25 percent tariff on imported steel and aluminum. In early April, an additional 25 percent tariff on all automobiles made outside the United States took effect, which raised the tax rate on imported passenger vehicles to 27.5 percent, dealing a blow to Japanese, German, South Korean and other foreign carmakers as well as their American rivals. The relief came four days before a 25 percent tariff covering engines, transmissions and other key auto parts was due to go into effect. At a rally in Michigan on Tuesday evening, Trump praised what he called "the most successful first 100 days of any administration in the history of our country" and boasted that his administration is succeeding in bringing back jobs and wealth to the United States. Although the auto tariffs will remain in place, major automakers including Ford Motor Co. and General Motors Co. welcomed the measures to cushion the effects. In a related development, Treasury Secretary Scott Bessent suggested Tuesday that the United States is poised to reach a tariff deal with India in the not-so-distant future, marking the first such agreement since Trump returned to office in January. Bessent said major U.S. trading partners and allies in Asia, including Japan and South Korea, have been the "most forthcoming" in terms of aiming for deals with the Trump administration since its imposition of broad-based tariffs on imported goods. On India, Bessent said a deal is "very close" and the country is easier to negotiate with than many others because its high tariffs are the main point at issue. Negotiations with some other countries involve nontariff trade barriers that can be "much more insidious and also harder to detect," he said during a press briefing with White House spokeswoman Karoline Leavitt. Bessent said the United States has 18 important trading relationships and the Trump administration will hold talks with at least 17 such partners over the next few weeks. Japan's chief negotiator in its tariff talks with the United States, Ryosei Akazawa, is set to arrive in Washington on Wednesday. Shortly before leaving Japan, Akazawa, minister in charge of economic revitalization, told reporters he is set to hold talks with Bessent on Thursday, with the auto and agricultural sectors likely to top the agenda. Related coverage: 40% of Japan prefectures offer financial aid over U.S. tariffs: poll Japan mulls simplified checks for more car imports in talks with U.S. Japan main opposition party aims to cut tax on food as election looms
Kyodo News
30-04-2025
- Automotive
- Kyodo News
Trump eases impact of auto tariffs on 100th day in office
By Takuya Karube, KYODO NEWS - 5 minutes ago - 11:17 | All, World U.S. President Donald Trump on Tuesday eased the impact of his new 25 percent tariffs on the auto industry as part of efforts to help manufacturers relocate supply chains for car parts used in the United States over the next two years. In another reversal of Trump's extensive additional tariffs, the relief, allowing all American and foreign automakers producing vehicles in the United States to claim some reimbursements, was announced as he marked the 100th day of his nonconsecutive second term. "They took in parts from all over the world. I don't want that. I want them to make their parts here, but I gave them a little bit of time," Trump said in a speech to thousands of supporters at a community college north of Detroit, home to the American auto industry. The temporary alleviation of some of the tariff burden came after automakers argued that due to the complexity of their supply chains it would take time to procure domestically all of the parts necessary to manufacture vehicles in the United States. Along with consumers, the auto industry has voiced concern that Trump's hefty tariffs could sharply raise car prices. Under the relief, a manufacturer will be allowed to offset 15 percent of the suggested retail price of an automobile assembled in the United States during the first year of the tariffs and 10 percent in the second year. Accordingly, automakers will be able to apply for a reimbursement of up to 3.75 percent of the value of each U.S.-made vehicle in the first year and 2.5 percent in the second year, with the offset arrangement stopping then, according to White House and Commerce Department officials. Under the scheme, the officials said, automakers will only pay one tariff -- the highest rate that applies to their goods -- without being hit by any of the Trump administration's other new duties, such as a 25 percent tariff on imported steel and aluminum. In early April, an additional 25 percent tariff on all automobiles made outside the United States took effect, which raised the tax rate on imported passenger vehicles to 27.5 percent, dealing a blow to Japanese, German, South Korean and other foreign carmakers as well as their American rivals. The relief came four days before a 25 percent tariff covering engines, transmissions and other key auto parts was due to go into effect. Although the auto tariffs will remain in place, major automakers including Ford Co. and General Motors Co. welcomed the measures to cushion the effects. In a related development, Treasury Secretary Scott Bessent suggested Tuesday that the United States is poised to reach a tariff deal with India in the not-so-distant future, marking the first such agreement since Trump returned to office in January. Bessent said major U.S. trading partners and allies in Asia, including Japan and South Korea, have been the "most forthcoming" in terms of aiming for deals with the Trump administration since its imposition of broad-based tariffs on imported goods. On India, Bessent said a deal is "very close" and the country is easier to negotiate with than many others because its high tariffs are the main point at issue. Negotiations with some other countries involve nontariff trade barriers that can be "much more insidious and also harder to detect," he said during a press briefing with White House spokeswoman Karoline Leavitt. Bessent said the United States has 18 important trading relationships and the Trump administration will hold talks with at least 17 such partners over the next few weeks. Japan's chief negotiator in its tariff talks with the United States, Ryosei Akazawa, is set to arrive in Washington on Wednesday. He is expected to hold talks with Bessent, with the auto and agricultural sectors likely to top the agenda. Related coverage: 40% of Japan prefectures offer financial aid over U.S. tariffs: poll Japan mulls simplified checks for more car imports in talks with U.S. Japan main opposition party aims to cut tax on food as election looms
