Musk faces a daunting path in challenging U.S. two-party system
But that is what Elon Musk, the billionaire behind Tesla and SpaceX, said he plans to do in the wake of his falling out with President Donald Trump. Musk this weekend announced the birth of the "America Party' — dedicated, he said, to defeating Republicans who backed Trump's massive tax-cut and spending bill.
Musk described his new party on his platform X as tech-centric, budget-conscious, pro-energy and centrist, with the goal of drawing both disaffected Democrats and Republicans. Musk has criticized the tax-cut bill, which is forecast to add about $3.4 trillion to the United States' debt.
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Nikkei Asia
3 hours ago
- Nikkei Asia
Philippines to face 20% US tariff, Trump says in letter to Marcos
U.S. President Donald Trump issued his latest round of tariff letters on July 9, targeting the Philippines and Brunei, among others. © Reuters Nikkei staff writers NEW YORK -- The U.S. will impose a 20% tariff on goods imported from the Philippines starting Aug. 1, President Donald Trump said in a letter revealed Wednesday, in his latest salvo against trade deficits with Southeast Asian nations. "Goods transhipped to evade a higher Tariff will be subject to that higher Tariff," Trump wrote in the letter to Philippine President Ferdinand Marcos, Jr., posted on his Truth Social account.


Yomiuri Shimbun
5 hours ago
- Yomiuri Shimbun
U.S. Tariff Letter Arrives at ‘Worst Possible Timing' for Ruling Coalition; Opposition Parties Pounce
A letter from U.S. President Donald Trump notifying Japan of new U.S. tariff rates on the country is likely to affect the upcoming House of Councillors election. With no prospect of reaching an agreement in tariff negotiations with the United States soon, the ruling parties now find themselves in a difficult position. Opposition parties are set to step up their offensive against the Liberal Democratic Party and LDP coalition partner Komeito, while seeking ways to respond to the ongoing 'national crisis' that the duties are considered to be. On Monday, Trump set a 25% tax on goods imported from Japan, as well as new tariff rates on 13 other nations that will go into effect on Aug. 1. In April, Trump announced a 10% base tariff rate and additional amounts for most countries and regions. However, all but the base rate were subsequently suspended for 90 days, and that negotiating period ends Wednesday. Asked about the impact of the latest U.S. move on the July 20 upper house election, Itsunori Onodera, the chairperson of the LDP Policy Research Council, said on Tuesday that he wants the government to take appropriate measures in line with Japan's national interest. 'This is not something to be discussed in relation to the election,' Onodera emphasized to reporters. Prior to the press conference, it was confirmed at a meeting of the executive members of the LDP's Comprehensive Response Headquarters for U.S. Tariff Measures that the group will work on measures to support domestic industries that will be affected by U.S. tariffs. The ruling parities emphasized the fact that the deadline for the imposition of the additional tariff rates was extended to Aug. 1. Onodera said, for instance, 'there is still time' to reach an agreement in future tariff negotiations. Former LDP Secretary General Toshimitsu Motegi said, 'We must make a deal to lower the tariff rates.' However, even within the ruling parties, some feel there has simply been an extension of the deadline, and there are no signs of a breakthrough in tariff negotiations. A former Cabinet member looked disturbed with the latest development and said, 'The letter arrived when the administration led by Prime Minister Shigeru Ishiba is having a hard time before the election.' An LDP executive member said, 'It was the worst possible timing to receive the letter, and it was like giving fresh ammunition to the opposition.' Komeito leader Tetsuo Saito urged the LDP in a post on the X social media platform to swiftly provide accurate information to prevent anxiety among the public from spreading any further. While denouncing the U.S. move, opposition parties are stepping up their criticism against the government in terms of its stance in the tariff negotiations as the upper house election nears. Yoshihiko Noda, president of the Constitutional Democratic Party of Japan, argued Tuesday that despite as many as seven visits to the United States by economic revitalization minister Ryosei Akazawa, the goals of the tariff negotiations have become even more distant. 'If Akazawa is not up to the task, the prime minister should take the lead in negotiations with Trump,' Noda said at a street speech in Sapporo. In June, Noda decided not to submit a no-confidence motion against the Cabinet during a regular session of the Diet, citing the ongoing Japan-U.S. tariff negotiations. 'If the negotiations are not going well, we must bring about a change of government,' Noda told reporters after his speech in Sapporo. 'No results have been achieved [in the negotiations],' Yuichiro Tamaki, leader of the Democratic Party for the People, told reporters in Toyama. 'This will have a severe negative impact on the Japanese economy.'


The Diplomat
6 hours ago
- The Diplomat
The Trump Effect Heads to Tokyo
It is decidedly outside the Trump administration's interest to harm the LDP's electoral prospects if it wants a greater chance at achieving its goals for Japanese defense spending. But that's exactly what its doing. President Donald Trump speaks with Japanese Prime Minister Shigeru Ishiba after Session I of the G7 Summit, Monday, June 16, 2025, in Kananaskis, Alberta, Canada. Canada's conservatives were gearing up to sweep the country's federal election in April. Then, Donald Trump began his second term in office. Just days later, he imposed a 25 percent blanket tariff on Ottawa while musing about making Canada the 51st state. Analysts watched in shock as the Liberal Party surged in polls as Canadian voters punished Conservative leader Pierre Poilievre for his association with Trump, dubbed the 'Trump Effect.' The Liberals dominated the April election. Poilievre lost his seat. And, ultimately, Trump lost out on a Trump-friendly right-of-center government in Ottawa. Echoing across the Pacific, Trump has backed Japan's ruling conservative Liberal Democratic Party (LDP) into a similar corner, through a combination of careless rhetoric and tariff policy. Just a few months into his second term, Trump has repeatedly questioned the United States' treaty obligation to defend Japan in the event of a foreign attack, at a time when threats from Japan's immediate neighbors — Russia, China, and North Korea — continue to grow. The Japanese public has not taken those comments lightly. A poll from Japan's Yomiuri Shimbun last week found that only 22 percent of respondents greatly trusted the U.S., a sharp drop from polling in 2024. On trade, Trump has placed Japan's already-unpopular Ishiba Shigeru cabinet into an impossible situation. Cars and rice have emerged as the main sticking points for U.S. negotiators after several rounds of trade talks. Trump and his allies have repeatedly promoted falsehoods about Japan's policies on both goods, including a nonexistent 700 percent rice tariff and an imaginary 'bowling ball test' for automobiles. Domestically, the economic and political consequences of acquiescence on the car and rice industries could be dire for Ishiba and the LDP. Vehicles are Japan's primary export — and the U.S. is its top customer. Changes to rice import policy could shake Japan's powerful agriculture lobby, a critical constituency of the ruling LDP. Japanese voters, unnerved by Trump's rhetoric and behavior, overwhelmingly support the Japanese government refusing to concede to U.S. demands. However, despite Japanese negotiators continuing to press for a favorable deal for Tokyo, a failure to do so may draw significant ire from Japanese voters who already have low faith in the Ishiba cabinet's minority government. Last week, Trump fired off a new round of threats against Tokyo over a span of several days, once again decrying Japan's car and rice trade policies and ultimately threatening to increase tariffs on the country if a deal wasn't reached by Trump's global July 9th trade deal deadline. This week, Trump sent a letter to Tokyo formalizing a tariff increase scheduled for August 1, just two weeks after Japan's upcoming elections. As in Canada, Trump is potentially sabotaging the success of a political party that has traditionally been an ally. The LDP's former and longtime leader, Abe Shinzo, notably enjoyed a close friendship with Trump during his first term. Additionally, Japan's LDP is leading the charge to increase the country's defense spending, one of Trump's primary goals for U.S. allies across the board, most recently pressing for a 5 percent benchmark among NATO countries. The Trump administration has been especially aggressive in pursuing a similar defense spending increase in Japan. So much so that the demands have repeatedly leaked into trade negotiations, to the public annoyance of Ishiba himself. In June, the Financial Times reported that the U.S. increased its demands for Japanese defense spending from an already unrealistic 3 percent to 3.5 percent, prompting Japan to cancel a scheduled 2+2 meeting. It is decidedly outside the Trump administration's interest to harm the LDP's electoral prospects if it wants a greater chance at achieving its goals for Japanese defense spending. Nor can Trump be taken seriously on standing against China if he chooses to sacrifice the U.S.-Japan security relationship over rice. The most productive off-ramp would be for U.S. trade negotiators to back down and promptly sign a good-faith, favorable trade deal for Tokyo, allowing the Ishiba cabinet to deliver a major win before Japanese voters go to the polls. The Japanese government can not electorally afford to acquiesce to a harmful deal, nor weather a tariff increase. Ultimately, only Trump can stop the Trump Effect.