Latest news with #tradeagreement
Argaam
an hour ago
- Automotive
- Argaam
Trump strikes tariff deal with Japan includes 15% tariff
US President Donald Trump announced a trade agreement with Japan that includes a 15% tariff on Japanese imports from the US, while also reducing tariffs on automobiles to the same level. "I just signed the largest TRADE DEAL in history with Japan," Trump said on his Truth Social platform, adding that Japan will invest $550 billion in the US. Japan will open its country to trade, including cars, trucks, rice, and some recent agricultural products, among others, explaining that the agreement will create hundreds of thousands of jobs. Automotive exports to the US are a cornerstone of the Japanese economy, accounting for 28.3% of total shipments in 2024. This agreement avoids the 25% tariffs Trump threatened to impose on Japanese imports, which were due to take effect next week.
Reuters
an hour ago
- Automotive
- Reuters
European, Japan stocks surge after US-Japan trade deal
LONDON/SYDNEY, July 23 (Reuters) - European shares climbed on Wednesday, buoyed by hopes of a trade agreement between the European Union and United States after Japan struck a deal that lowers tariffs on its autos, sending Japanese stocks to a one-year high. President Donald Trump on Tuesday said a trade deal with Tokyo will include Japan paying a lower-than-threatened 15% tariff on shipments to the U.S. It followed an agreement with the Philippines that will see the U.S. collect a 19% tariff rate on imports from there. Trump also said EU representatives were coming for trade negotiations on Wednesday. That stirred hopes for a deal with Europe, even as the EU was reportedly refining countermeasures in case of a deadlock before the August 1 deadline. Euro STOXX 600 (.STOXX), opens new tab jumped 1%, with auto shares (.SXAP), opens new tab surging 3.6%. UK shares (.FTSE), opens new tab hit a record high, climbing 0.5%. The trade deal news has "raised hopes that the U.S. might be about to reach deals with other countries that avoid the higher tariffs on August 1," Deutsche Bank analysts wrote in a note. On Wall Street, S&P 500 futures were up 0.2%, while Nasdaq futures added 0.1%. Japan's Nikkei (.N225), opens new tab climbed 3.7% as automaker shares surged on news the deal would cut the U.S. auto tariff to 15%, from a proposed 25%. Mazda Motor (7261.T), opens new tab rose 18%, while Toyota Motor (7203.T), opens new tab jumped 14%. South Korean automakers also rose as the Japan deal fuelled optimism over potential progress in tariff negotiations between South Korea and the United States. The dollar remained weak, having lost ground overnight. It traded flat at 146.71 yen after sliding 0.5% on Tuesday. The dollar index , which tracks the currency against major peers, was little changed at 97.48. Analysts noted the trade deal reduced a major risk to the fragile Japanese economy, providing more scope for the Bank of Japan to raise interest rates to fight inflation. That hit the bond market, with yields for 10-year JGBs rising 8.5 basis points to 1.585%. Japan's Prime Minister Shigeru Ishiba denied reports he planned to step down following a bruising upper house election defeat. Ishiba said media reports that he had already decided to resign were "completely unfounded." In another positive development, U.S. and Chinese officials will meet in Stockholm next week to discuss an extension to the August 12 deadline for negotiating a trade deal, Treasury Secretary Scott Bessent said. Chinese blue-chips (.CSI300), opens new tab rose 0.7% before losing steam, and MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab added 1.2%. U.S. corporate earnings reports were showing signs that Trump's trade war was hitting profit margins. General Motors (GM.N), opens new tab tumbled 8.1% after the automaker reported a $1 billion hit from tariffs to its quarterly results. Investors are awaiting results from Tesla (TSLA.O), opens new tab and Google's parent Alphabet (GOOGL.O), opens new tab - two of the Magnificent 7 stocks that have driven much of the market rally fuelled by AI optimism. Elsewhere, the euro dipped 0.1% to $1.1737, after rising 0.5% the previous day. The European Central Bank is expected to hold rates steady on Thursday after eight consecutive rate cuts. Oil prices nudged higher, helped by rising prices for diesel in the U.S., where stockpiles are at their lowest levels for this time of the year since 1996. U.S. crude rose 0.3% to $65.48 per barrel, while Brent was at $68.77 per barrel, up 0.2%.
Wall Street Journal
an hour ago
- Business
- Wall Street Journal
Stock Market Today: Dow Futures Rise After U.S.-Japan Trade Deal — Live Updates
Stock futures and global markets rose early Wednesday on the news of a U.S.-Japan trade agreement , hot on the heels of America reaching trade pacts with the Philippines and Indonesia. The U.S. will levy so-called reciprocal tariffs of 15% on Japan, President Trump said on Truth Social, with Japan to invest $550 billion in America. Earnings season continues, with results due from Google parent Alphabet and Tesla after the market close. Futures for the Dow industrials, S&P 500 and Nasdaq-100 all gained. On Tuesday, the S&P hit another all-time record. Japan's Nikkei 225 jumped 3.5%. European and other Asian indexes saw smaller gains. Treasury yields rose. The yield on 10-year notes topped 4.37%. Gold futures held around record highs, boosted by a weak dollar.
Yahoo
2 hours ago
- Business
- Yahoo
Japanese PM Shigeru Ishiba reportedly preparing to resign by end of August
Japanese prime minister Shigeru Ishiba is preparing to step down by the end of August, according to local media reports, following a significant electoral defeat and the conclusion of a high-stakes trade agreement with the United States. Mr Ishiba, who has faced mounting criticism from within his Liberal Democratic Party (LDP) after his coalition lost its majority in Sunday's upper house election, has reportedly informed close aides of his intention to resign. Japan's Yomiuri newspaper reported that Mr Ishiba told his inner circle on Tuesday that he would explain how he planned to take responsibility for the election results once trade negotiations with the US had been resolved. The Mainichi and the Sankei newspapers also reported that his formal announcement is expected next month, once key national events conclude. On Wednesday, US president Donald Trump wrote on his Truth Social platform that he had finalised a 'massive' trade deal with Japan involving $550bn in Japanese investments into the US economy. The agreement also includes a reduction of tariffs on Japanese goods from a proposed 25 per cent to 15 per cent. "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,' he wrote on Truth Social. Mr Ishiba responded cautiously when asked about the impact of the deal on his political future. 'I can't say until I scrutinise the outcome of the agreement,' he told reporters, adding that he intended to speak with Mr Trump once he had been briefed by Japan's chief trade negotiator, Ryosei Akazawa. Auto exports, which represent more than a quarter of Japan's total exports to the US, will also see reduced tariffs under the agreement, Mr Ishiba noted, calling the 15 per cent rate 'the lowest figure among countries that have a trade surplus with the US'. Despite widespread calls for him to step down, the prime minister had argued that it would be irresponsible to vacate his position amid ongoing economic challenges. 'I will stay in office and do everything in my power to chart a path toward resolving these challenges,' Mr Ishiba said in a news conference on Monday. He is expected to meet senior LDP figures and three former prime ministers later on Wednesday to discuss the implications of the election results and his likely resignation. Once Mr Ishiba formally steps aside, the ruling party must organise a leadership election to select his successor. However, with the LDP-Komeito coalition no longer holding a majority in either house of parliament, the new leader may face difficulty securing the required support in a parliamentary vote to become prime minister. August is traditionally a politically significant month in Japan. This year, it includes commemorations of the atomic bombings of Hiroshima and Nagasaki, the anniversary of the end of World War II on 15 August, and the Tokyo-hosted international conference on African development from 20 to 22 August. Sources suggest Mr Ishiba is likely to resign only after these events have concluded. Meanwhile, Mr Ishiba's approval ratings have dropped sharply in recent days, with a major national poll showing support for his administration falling to just above 20 per cent – a threshold often considered unsustainable for a sitting government. 'What this means is that we're sort of entering a period of speculation as to who's going to be the next leader,' William Chou, deputy director of the Japan Chair at the Hudson Institute, told Bloomberg. 'Right now it's just a lot of speculation.'
The Independent
2 hours ago
- Business
- The Independent
Japanese PM Shigeru Ishiba reportedly preparing to resign by end of August
Japanese prime minister Shigeru Ishiba is preparing to step down by the end of August, according to local media reports, following a significant electoral defeat and the conclusion of a high-stakes trade agreement with the United States. Mr Ishiba, who has faced mounting criticism from within his Liberal Democratic Party (LDP) after his coalition lost its majority in Sunday's upper house election, has reportedly informed close aides of his intention to resign. Japan 's Yomiuri newspaper reported that Mr Ishiba told his inner circle on Tuesday that he would explain how he planned to take responsibility for the election results once trade negotiations with the US had been resolved. The Mainichi and the Sankei newspapers also reported that his formal announcement is expected next month, once key national events conclude. On Wednesday, US president Donald Trump wrote on his Truth Social platform that he had finalised a 'massive' trade deal with Japan involving $550bn in Japanese investments into the US economy. The agreement also includes a reduction of tariffs on Japanese goods from a proposed 25 per cent to 15 per cent. "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,' he wrote on Truth Social. Mr Ishiba responded cautiously when asked about the impact of the deal on his political future. He said he will make a decision on resigning after closely studying the tariff deal just struck with the US. 'I can't say until I scrutinise the outcome of the agreement,' he told reporters, adding that he intended to speak with Mr Trump once he had been briefed by Japan's chief trade negotiator, Ryosei Akazawa. Auto exports, which represent more than a quarter of Japan's total exports to the US, will also see reduced tariffs under the agreement, Mr Ishiba noted, calling the 15 per cent rate 'the lowest figure among countries that have a trade surplus with the US'. Despite widespread calls for him to step down, the prime minister had argued that it would be irresponsible to vacate his position amid ongoing economic challenges. 'I will stay in office and do everything in my power to chart a path toward resolving these challenges,' Mr Ishiba said in a news conference on Monday. He is expected to meet senior LDP figures and three former prime ministers later on Wednesday to discuss the implications of the election results and his likely resignation. Once Mr Ishiba formally steps aside, the ruling party must organise a leadership election to select his successor. However, with the LDP-Komeito coalition no longer holding a majority in either house of parliament, the new leader may face difficulty securing the required support in a parliamentary vote to become prime minister. August is traditionally a politically significant month in Japan. This year, it includes commemorations of the atomic bombings of Hiroshima and Nagasaki, the anniversary of the end of World War II on 15 August, and the Tokyo -hosted international conference on African development from 20 to 22 August. Sources suggest Mr Ishiba is likely to resign only after these events have concluded. Meanwhile, Mr Ishiba's approval ratings have dropped sharply in recent days, with a major national poll showing support for his administration falling to just above 20 per cent – a threshold often considered unsustainable for a sitting government. 'What this means is that we're sort of entering a period of speculation as to who's going to be the next leader,' William Chou, deputy director of the Japan Chair at the Hudson Institute, told Bloomberg. 'Right now it's just a lot of speculation.'
