Latest news with #USIndependenceDay
Japan Forward
31-07-2025
- Automotive
- Japan Forward
New US Electric Vehicle Rules Put Japan's Auto Industry in the Fast Lane
The United States remains the most important export market for Japan's core industry, the automobile sector. In a welcome development, the recently concluded Japan–US tariff negotiations saw tariffs on cars and auto parts reduced from 27.5%, a rate imposed by Donald Trump's administration earlier this spring, down to 15%. This comes as a relief for Japanese automakers, whose profits had been under pressure. Beyond tariffs, shifts in electric vehicle (EV) policy are also working in their favor. On July 4, US Independence Day, President Trump signed into law a sweeping legislative package he dubbed the "One Big Beautiful Bill Act." With that legislation, he reversed the decarbonization policies championed by the Joe Biden administration's "Green Transformation (GX)," under which Biden had promoted EVs with the slogan "the future of the American auto industry is electric." In contrast, Trump remained steadfastly critical of EVs throughout his campaign. He often argued that electric vehicles might be enjoyable at first but soon raise practical concerns, such as where to charge them. Trump characterized EV subsidies as policies that benefit the wealthy and warned that a full shift to electric cars would make the US auto industry dependent on China, putting American jobs at risk. Upon taking office, Trump quickly acted on his campaign promises. He signed an executive order opposing EV mandates and withdrew from the Paris Agreement on climate change. On June 12, he stripped states like California of their authority to ban the sale of new gasoline-powered cars by 2035. This effectively abolished the Zero Emission Vehicle regulations. Currently, about 7% of new car sales in the US are EVs, and nearly 70% of those are Teslas. These are mainly purchased in affluent, environmentally conscious areas like California. A Tesla electric vehicle (EV) and the company's logo. June 2023, Colorado, USA (©AP/Kyodo) Then came the new One Big Beautiful Bill, which will eliminate EV tax credits, $7,500 for new electric vehicles and $4,000 for used ones, starting September 30. In addition, federal registration taxes will impose an annual fee of $250 for electric vehicles and $100 for hybrids. On the other hand, Americans buying domestically produced cars will now be able to deduct part of their auto loan interest from their income taxes. One of the most notable aspects of the new bill is the removal of penalties under the Corporate Average Fuel Economy (CAFE) standards. Under the previous administration, the standards grew stricter every year, penalizing automakers for selling more gasoline vehicles. If manufacturers didn't want to pay the fines, they had to purchase carbon credits from EV companies like Tesla. However, over 90% of American consumers still prefer internal combustion engine vehicles. As a result, both the US Big Three (Ford, General Motors, and Chrysler) and Japanese automakers faced mounting penalties as their sales of gasoline-powered cars increased. Some rushed EV investments to avoid these fines, but their late-to-market EVs struggled to sell. By contrast, companies like Tesla benefited greatly from this system. In fiscal 2024, Tesla earned $2.76 billion in carbon credit revenue, accounting for about 39% of its net profit. Now, that revenue source is set to disappear. As the saying goes, when it rains, it pours. On July 2, Tesla announced that global vehicle deliveries for the April–June 2025 quarter fell 13.5% year-on-year to 384,122 units. This represented a double-digit decline. Sales are stagnating, and EV tax credits are ending. Furthermore, subsidies for charging infrastructure and residential solar battery storage are all being phased out. With carbon credit income now uncertain, the business model that had relied on decarbonization incentives is rapidly collapsing. Trump has made revitalizing the economy through manufacturing a top priority. He has also introduced tariff hikes to bring back the auto industry, along with a return to fossil fuel–based energy, both key promises from his campaign. For EV manufacturers who relied on subsidies and carbon credit revenue amid flagging demand, this is a disaster. In contrast, the new policy offers tailwinds for Japanese automakers, who have strengths in internal combustion engines. Back in 2020, the Japanese government also set a national target of achieving carbon neutrality by 2050 and promoted EVs. However, companies like Toyota stayed grounded in market realities. Had they yielded to political pressure and rushed headlong into full EV adoption, they might now be grappling with sunk investments, significant losses, and widespread job insecurity. Despite being branded by the media as "behind the curve" on EVs, Japanese automakers stuck to their comprehensive, all-weather strategy — and it's now paying off. Sales of Japan's signature hybrid vehicles remain strong, with Japanese brands now commanding 40% of new car sales in the North American market. As the politically driven EV push falters, the future of mobility under the Trump administration is being shaped not by mandates but by consumer choice. Despite the weight of additional tariffs, Japanese automakers are expected to further strengthen their foothold in the region. (Read the article in Japanese .) Author: Koko Kato
Qatar Tribune
26-07-2025
- Business
- Qatar Tribune
Disentangling the economic implications of ‘Big Beautiful Bill'
The One Big Beautiful Bill (OBBB) will stand in history as one of the most impactful and disruptive initiatives of the second Trump Presidency. Spanning close to 900 pages, it took shape after months ofgruesome negotiations and political maneuvering in Congress. It finally passed by narrow margins in the Senate and House, with 51-50 and 218-214 votes respectively, before President Trump signed it into law on July 4th, the US Independence Day. At its core, the bill enacts significant changes to the US tax code, extending and expanding tax cuts for high income individuals and corporations, while scaling back funding for safety-net programs, and re-defining spending priorities. The reforms sparked intense debates over its distributional impact and long-term sustainability. Given the magnitude and span of the OBBB, its macroeconomic implications are substantial in scale, and wide-ranging in scope. In this article, we analyse the main aspects of the OBBB along three key dimensions. First, the bill is set to have a meaningful expansionary impact on the economy over the next decade. According to estimates by the Congressional Budget Office (CBO), real GDP would increase on average by 0.5% over the 2025-2034 period, relative to a scenario without the implementation of the bill. This is a relevant impact on the economy, considering that average annual economic growth in the US has been 2.2% over the last two decades. The effects would be largest in the short term, with the bill boosting GDP by 0.9% in 2026. The initial push in economic activity would come to a large extent from an increase in aggregate demand, due to higher disposable income for more prosperous households, and items that incentivize investments. Beyond 2026, lower tax rates will improve the incentives to work, increasing labour participation and working hours and, therefore, promoting growth. Overall, the different growth mechanisms point to a positive and significant boost to economic activity. Second, the OBBB will substantially increase the US federal deficit and the path of debt in the coming years. The bill includes a battery of measures that will put pressure on public finances, including the extension of tax cuts, reduced corporate tax revenues, and expanded deductions. On the other hand, some spending cuts are included, mainly targeting entitlements and safety-net programs, but are smaller in relative terms. Over the period between 2025 to 2035, the bill would add an estimated USD 4.6 trillion to the deficits. As a result, federal debt is expected to reach close to 128% of GDP by 2034, its historical maximum. This far surpasses the 119% mark reached in 1946, when the country was absorbing the costs of the World War II economy and the immediate post-war recession. The sizable increase in the volume of US Treasury debt will certainly test the appetite of international markets, leading to a rise in interest rates. The increase in the supply of Treasury instruments will result in a fall in their price, and therefore an increase in yields. The CBO and Yale Budget Laboratory estimate the OBBB will increase interest rates on 10-year Treasury notes by an average 14 to 30 basis points (b.p.) over the period 2025-2034. This increase in debt costs is not negligible, but it is not exceptionally disorderly considering fluctuations in yields that are typically observed on any given year. Although the upward shift in the trend of debt is substantial and raises some long-term sustainability concerns which eventually need to be addressed, it is unlikely that these dynamics will generate major disruptions in financial markets over the next 10 years. — By QNB Economics
Straits Times
26-07-2025
- Business
- Straits Times
‘US needs China's fireworks': No alternative for some Chinese goods amid trade uncertainty
LIUYANG/YIWU - Fourth of July celebrations in the United States might have just passed, but Chinese businessman Marx Wu is already prepared for a dampening effect of tariffs on sales of his fireworks to American customers for the festivities in 2026. This is due to the additional 30 per cent tariffs that US President Donald Trump has been imposing on China – since the outbreak of a trade war between the two countries in April – in a bid to bring back manufacturing to the US. 'Customers will be more cautious because their costs have increased significantly,' Mr Wu told The Straits Times. His company, Magnus Fireworks, is based in Liuyang, Hunan province, which is dubbed China's 'fireworks' hometown' for its expertise in manufacturing pyrotechnics. The US government now collects a 35.7 per cent tax from American importers for fireworks from China. The bulk of these sales are meant for the annual US Independence Day celebrations synonymous with fireworks displays. Such orders are typically made a year in advance. But Mr Wu, who sells mainly to the US, remains optimistic about his business' viability in the longer-term, because the strengths of the Chinese industry in Liuyang cannot be easily replicated elsewhere, he said. When unpacking the impacts of Trump's aggressive tariff strategy on Chinese manufacturers, it is a mixed picture on the ground. Top stories Swipe. Select. Stay informed. Singapore Almost half of planned 30,000 flats in Tengah to be completed by end-2025: Chee Hong Tat Asia Death toll climbs as Thai-Cambodia clashes continue despite calls for ceasefire Multimedia Lights dimmed at South-east Asia's scam hub but 'pig butchering' continues Singapore Black belt in taekwondo, Grade 8 in piano: S'pore teen excels despite condition that limits movements Asia Where's Jho Low? Looking for 1MDB fugitive in Shanghai's luxury estate Asia Thousands rally in downtown Kuala Lumpur calling for the resignation of PM Anwar Life SG60 F&B icons: Honouring 14 heritage brands that have never lost their charm Business Can STI continue its defiant climb in second half of 2025? Mr Marx Wu with some of his company's firework products for US Independence Day celebrations at his office in Liuyang, Hunan province. ST PHOTO: LIM MIN ZHANG On the one hand, Mr Trump's move to impose tariffs across the board on Chinese goods in April has led to factory closures and worker lay-offs in certain sectors such as the garment industry, and accelerated moves to diversify away from the US market for other exporters. On the other hand, there are other products which simply have few to no alternatives to 'made in China', because the country's manufacturers are overwhelmingly competitive, say experts. When Mr Trump proclaimed 'Liberation Day' on April 2 with 'reciprocal tariffs' on the US' trading partners, Beijing and Washington engaged in a tit-for-tat tariff war. At one point, American importers had to pay a 145 per cent tax on Chinese goods. But bilateral trade talks since May 12 have de-escalated the situation. US and Chinese officials are set to meet in Stockholm next week (from July 27) to discuss a possible extension of a 90-day truce. The fireworks industry presents a case study showing how, despite trade tensions and strategic competition, the US and China remain economically intertwined. While US businesses now adopt a cautious approach in placing orders, the deals have continued to flow as Chinese manufacturers remain competitive. Liuyang has over decades accumulated the technical know-how, the quality of its raw materials, proper regulatory oversight and strict transportation requirements, Mr Wu said. Factories dot the surrounding mountainous terrain of the city, about an hour's drive from the inland Hunan capital of Changsha. Production has to stop for about a month for safety reasons every summer because of the heat. 'America needs fireworks – this will not change,' said Mr Wu. 'At the very most, they will buy fewer, but they will not stop buying completely. In addition, we have good relations with our customers who trust in our products, and they also believe that this (tariffs issue) is temporary.' Screenshot from a video Mr Wu took of a Fourth of July fireworks celebration in Ohio earlier in July. His company's products were used. PHOTO: MARX WU According to the American Pyrotechnic Association, 90 per cent of professional display fireworks used in the US are imported from China. Reports say that US companies import close to US$400 million worth of consumer fireworks from China each year. More than 200 other imported products depend on China for more than 90 per cent of their supply, including baby carriages, vacuum flasks, umbrellas and artificial plants. Mr Stephen Olson, a visiting senior fellow at the ISEAS-Yusof Ishak Institute in Singapore who specialises in international trade, said that despite all the conflicts and tension, trade between the US and China has remained remarkably resilient. Although China's exports to the US declined in the first half of the year, China remains among the US' largest trade partners and will continue to be so for the foreseeable future, he said. China's exports to the US declined by 10.7 per cent in the first half of 2025, compared to the same period in 2024, a drop of US$25.7 billion. 'Trump's tariffs have undoubtedly dented China's cost competitiveness but the resilience of China's exports reflect the simple fact that China is the world's preeminent manufacturer and is overwhelmingly competitive in a host of consumer products and industrial inputs. It's simply not possible to cut China entirely out of US consumer markets or supply chains,' Mr Olson said. Mr Steve Houser, president of Missouri-based Red Rhino Fireworks who was on a work trip to China, said he has already placed his orders for 2026, but added that he – like other major importers – is doing so much more cautiously. 'I'm being very particular on what I order. I'm ordering only what I really, really need. I'm not really taking chances on other things because of the tariff rates; the goods are costing me a lot more,' he told ST. He said that the National Fireworks Association in the US was recently in Washington DC to make the case that fireworks should be exempt from the across-the-board tariffs of 30 per cent, as there are no viable alternative suppliers from other countries. Apart from the fireworks business, the US-China trade war has resulted in uncertainty for many exporters, such as those in Yiwu, of Zhejiang province, which is home to the world's largest wholesale market for small commodities. The sprawling Yiwu International Trade City hosts more than 70,000 shops selling products from cosmetics to stationery, backpacks and Christmas decorations. Most shops that stocked Halloween and Christmas decorations at the trade city declined to speak with ST in early July, when it is usually the peak sales season for these products. A few shop owners would only say that business is slower in 2025, while others said they were not authorised to speak with the media. Rows of dozens of shops at Yiwu International Trade City in Zhejiang province selling Christmas decorations were largely empty when ST visited in early July. ST PHOTO: LIM MIN ZHANG Ms Guo Xiabing, an entrepreneur in Zhejiang who runs a factory making Christmas trees in Yiwu, said that typically, US customers are more able to afford higher-priced products, such as those with more fanciful ornaments. She shared about her factory's race to ship orders in the 90-day trade truce between the US and China in a documentary aired in June. 'Customers also do not want to give up on the orders. But that also means that we are left hanging, not knowing when we can resume production and shipping. This type of uncertainty causes a lot of anxiety. Should we let go of the workers? How would we find jobs for them?' she said. Yet others have taken a longer-term view, and have long made efforts to diversify away from the US market. Chief executive of Aokai Sporting Goods in Yiwu, Mr Wu Xiaoming, who has been in the industry for 30 years, counts the South American and African markets as his major customers - at about 50 per cent and 20 per cent respectively - with the US market accounting for only about 5 per cent. Chief executive of Aokai Sporting Goods in Yiwu, Mr Wu Xiaoming, inspecting a football bound for Nicaragua at his factory in Yiwu city, Zhejiang province. ST PHOTO: LIM MIN ZHANG He recalled that there was one American customer who called him to resume an order on May 13, shortly after news of successful US-China trade talks in Geneva was announced, as well as to place a new order for 90,000 footballs. His orders from the US are mainly for supermarkets. 'For the US market, the volume is still there. But it is US consumers who have to bear the cost (of the tariffs). If you force us to lower our costs, it means the quality of the product suffers, so ultimately it's still the consumers who pay the bill,' Mr Wu said. He believes that diversification is necessary for his company's viability, not only because of trade frictions, but also due to other sources of instability. He cited examples such as a Croatian client that halted a shipment because of the Kosovo War in 1998, and how demand from Russia has plummeted because of the Ukraine war. 'There has not been a period where the entire world was completely at peace... In Yiwu, we engage in global trade. If the West doesn't shine, the East will.'
The Sun
20-07-2025
- Politics
- The Sun
Orban's illiberal model in Hungary draws Trump comparisons
BUDAPEST: Hungarian Prime Minister Viktor Orban has positioned himself as a pioneer of far-right governance, earning comparisons to former US President Donald Trump. With a self-proclaimed 'illiberal state' model, Orban's policies have reshaped Hungary's political landscape, drawing both admiration and criticism. At a recent US Independence Day celebration in Budapest, American charge d'affaires Robert Palladino noted the shift in diplomatic tone, stating, 'No more public scoldings. No more moralising from podiums.' Orban, who calls Trump 'a great friend,' hopes for a US presidential visit to solidify their ideological alliance. Over his 15-year rule, Orban has been accused of suppressing judicial independence, academia, media, and civil society while restricting minority rights. Former US President Joe Biden once accused him of 'looking for dictatorship.' Zsolt Enyedi, a democracy researcher at Central European University, described Hungary as 'an open-air museum' where illiberal ideas have been institutionalised. Both Orban and Trump have targeted minorities, including the LGBTQ community, leveraging public divisions for political gain. US author Rod Dreher, a Budapest resident, defends Orban's policies, arguing that the 'Hungarian model' counters left-wing ideologies. He praised Trump's hardline stance, stating, 'When institutions that should be neutral are so far to the left, it takes a strongman like Trump just to try to bring them back to the centre.' Trump's tactics—such as threatening university funding and sidelining critical media—mirror Orban's strategies. Enyedi noted, 'Both make it clear that they are acting out of revenge.' Despite similarities, dissenting voices remain stronger in the US than in Hungary. While Orban awaits a White House invitation, Palladino hinted at a potential Trump visit to Budapest, calling it 'a reflection of real alignment between two sovereign nations that believe in tradition, strength, and identity.' - AFP
Irish Independent
18-07-2025
- Entertainment
- Irish Independent
‘Pretty Little Baby' singer Connie Francis dies aged 87
The news of her death was confirmed yesterday by her close friend Ron Roberts, who is also the president of her record label, Concetta Records. 'It is with a heavy heart and extreme sadness that I inform you of the passing of my dear friend Connie Francis last night,' Roberts wrote in a statement posted on Facebook. 'I know that Connie would approve that her fans are among the first to learn of this sad news. More details will follow later.' Francis had been forced to cancel a scheduled US Independence Day appearance with radio host Cousin Brucie earlier this month after being taken to hospital in severe discomfort. On July 2, she wrote in a social media update: 'Hello everyone – as many of you may now have learned through Cousin Brucie's Facebook page, I am back in hospital where I have been undergoing tests and checks to determine the cause(s) of the extreme pain I have been experiencing. 'I had hoped to take part in Brucie's show for Independence Day, having had to cancel a previous slot a few weeks ago when receiving treatment on my hip. Sadly, I had to let him know that I again had to withdraw. My thanks for your many get well soon messages. I will endeavour to keep you updated. Love, Connie.' Francis, who was born Concetta Franconero in Newark, New Jersey, in December 1937, rose to fame in the 1950s and 1960s, becoming one of the most successful female recording artists of her era. While many of her best-known songs were recorded decades ago, she recently experienced a surprising resurgence in popularity thanks to social media. Her track Pretty Little Baby, which originally was not released as a single, has become a viral favourite on TikTok and Instagram Reels in 2024, featured in videos by celebrities including Kylie Jenner and Kim Kardashian. According to Billboard, US weekly streams of the song jumped from 17,000 in April to 2.4 million by May. Speaking about the track's renewed popularity in May, Francis admitted she 'didn't even remember the song'. She told People: 'I had to listen to it to remember. To think that a song I recorded 63 years ago is touching the hearts of millions of people is truly awesome. It is an amazing feeling.'
