Nissan considers Foxconn EV output to save Oppama from closure: report
Nissan's Oppama plant, which employs about 3,900 workers, has been a potential consolidation target in the struggling Japanese carmaker's restructuring plans, but the idea of producing Foxconn-brand EVs at its idle assembly lines could preserve jobs and supplier networks, the Nikkei said.
A statement from Nissan said the report was not based on information released by the company itself. A Foxconn spokesperson did not immediately respond to a request for comment.
In May, Nissan's junior partner Mitsubishi Motors, signed a memorandum of understanding with a Foxconn subsidiary to supply Mitsubishi with an EV model. REUTERS
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Straits Times
an hour ago
- Straits Times
25% on Japan and Malaysia, 40% on Laos: Trump's tariff letters to Asia add pressure for deals by Aug 1
Sign up now: Get ST's newsletters delivered to your inbox While the government negotiators haggle over clauses, Asia's businesses are gearing up for tough times. WASHINGTON/TAIPEI/KUALA LUMPUR - The politely-worded letters arrived in waves, laying out the consequences for Japan, South Korea, Malaysia, Indonesia, Thailand and others for failing to strike a deal in time to ward off the elevated tariffs unilaterally announced by President Donald Trump in early April and then paused until July 9. Mr Trump began with his East Asian allies, telling Japanese Prime Minister Shigeru Ishiba and South Korea's President Lee Jae-myung that their imports to the US will attract 25 per cent tariffs beginning on Aug 1. In the hours that followed, most South-east Asian nations got their mail from the White House. For Malaysia and Indonesia, both in vigorous negotiations to clinch a deal over the weekend, Mr Trump's letter specified the reciprocal tariff at 25 per cent and 32 per cent, respectively. For Thailand, the notice said 36 per cent and in the case of Laos and Myanmar, 40 per cent each. These rates are mostly in line with Mr Trump's April announcement when he shocked the region by imposing some of the highest tariffs here. Malaysia and Japan's new rates rise a little from the 24 per cent announced earlier. For Laos and Myanmar, the rates fall from 48 per cent and 44 per cent, respectively. There was no explanation offered for the change. The surprise was for Cambodia which was told its goods would incur a 36 per cent tariff, far lower than the 49 per cent tariff in Mr Trump's original announcement. Singapore, India and Taiwan, among others, have not yet heard from the White House Top stories Swipe. Select. Stay informed. Business Asia markets edge up as Trump signals still open to tariff talks World Netanyahu says he nominated Trump for Nobel Peace Prize Singapore MRT train services resume on 5-station stretch of North-South Line after track fault Multimedia 'I suspect he's cheating': She finds proof when spouses stray Opinion Singapore at 60: Home truly is an idea that never stands still Singapore Fastest charger to be added to Singapore's EV charging network by Q4 in 2025 Singapore Singapore's second mufti Sheikh Syed Isa Semait dies at age 87 The letters, identical in wording, were posted on Truth Social on July 7 afternoon, or from 12.30am on July 8 SGT. They also said that America's trading partners will face sectoral tariffs that apply on export of items like autos (25 per cent) and steel and aluminium (50 per cent) - which will hit manufacturing powerhouses like China, Japan and South Korea hard. And in line with the US policy of clamping down on goods transshipped from China to evade higher tariffs applicable on Chinese imports, there was a mention of higher tariffs on such goods. The rate was not specified however. It was also made clear that if the nations choose escalation and retaliate with tariffs of their own on US goods, Washington will respond in kind by tacking on more tariffs of equal magnitude. Although Mr Trump opened the letters with a reference to the strength of the trading relationships, he brought up his unhappiness with the large and chronic trade deficits racked up by the US. His message to the recipient nations - and to those who have yet to get their letter - was unambiguous: You have three weeks to cut a deal before the higher tariffs kick in. But his erratic negotiating style also burdens the White House with a credibility problem. Is the next milestone of Aug 1 also a moving goalpost? 'This is a rerun,' said Mr William Alan Reinsch, an expert in economics and international business at CSIS. 'Clarify the threat, extend the deadline, and hope that leads to a deal.' It is an attempt to push the nations to make more concessions since it's clear from the US point of view neither of them has made enough so far, he noted. 'The obvious question, of course, is that as August 1 approaches and there are still no deals, will Trump extend the deadline again - and perhaps increase the tariffs - or will he actually impose the tariffs.' Malaysia, hosting US Secretary of State Marco Rubio and other senior officials in the course of the Asean foreign ministers meeting this week, had repeatedly expressed confidence of negotiating a discount to the 24 per cent announced in April, especially for its most critical export sectors like electronics. 'While we acknowledge the concerns raised by the U.S. regarding trade imbalances and market access, we believe that constructive engagement and dialogue remain the best path forward,' Malaysia's Ministry of Investment, Trade and Industry said in a statement July 8. A senior Malaysian trade official told The Straits Times the silver lining is that Malaysia is 'in the same club' as Washington's allies Japan and South Korea. These three countries had likely expected a reduction in tariffs imposed on their exports from levels that were previously announced. 'We will, of course, continue to negotiate but Trump is doing this independent of (Jamieson) Greer and all the negotiations,' the same official said, requesting anonymity to comment on confidential conversations. Greer is the US Trade Representative. Higher prices and slowing economies The road to tariff agreements has been littered with false starts. Treasury Secretary Scott Bessent had said in late June that the US hoped to wrap up trade talks with them by the start of September. And in April, trade adviser Peter Navarro had suggested 90 deals would be done in 90 days. While this did not transpire, the series of letters released on July 7 announcement appear to hint at an end to the uncertainty even if the impact on trade is unwholesome. It's unfortunate that President Trump has announced 25 per cent tariff hikes for two of its closest allies, Japan and South Korea, said former US trade negotiator Wendy Cutler. 'Both have been close partners on economic security matters and have a lot to offer the US on priority matters like shipbuilding, semiconductors, critical minerals and energy cooperation,' said Ms Cutler who is now vice-president at the Asia Society Policy Institute (ASPI). Companies from both countries have made significant manufacturing investments in the US in recent years and provided high-paying jobs to US workers, she added. And both are key markets for a variety of US goods from pork to planes. Mr Reinsch said there was no good news to be had from the tariffs. 'A 25 per cent tariff will have a major impact on Korean and Japanese exports to the US, including things that are in demand here like autos and semiconductors.' 'They will mean higher prices here and a slowdown in the economies of the other two countries,' Mr Reinsch said. The ongoing Section 232 investigations that may lead to additional tariffs on autos and semiconductors are another worry, he said. The July 7 announcement sends a chilling message to others, Ms Cutler said. It suggests that the US will not be open to reprieves from the Section 232 sectoral tariffs, including on autos, a high priority for both Japan and South Korea. But she also saw a less glum side. 'While the news is disappointing, it does not mean the game is over,' said Ms Cutler. 'We cannot rule out a breakthrough in negotiations in the lead up to Aug 1, when the additional tariff hikes are to take effect,' she said. Waiting in the wings Some excitement surrounds the possibility of a' mini' trade deal with India. Negotiations are believed to be centred around India opening up certain segments of the agriculture and dairy sector while seeking lower than 26 per cent tariffs for the textile and footwear sectors among others. India is also seeking concessions on auto parts apart from reduced tariffs on aluminium and steel. India is unwilling to concede to the US demand for exports of genetically modified crops like corn. Any concessions seen as unreasonable by its strong farm lobby would have a direct political impact on the Narendra Modi government. Sources said India has the July 2 deal struck by Vietnam in mind as they seek an accommodation with Mr Trump. India and Vietnam are competitors in areas like electronics and textiles. 'It's no longer just about tariffs anymore, it's about comparative tariffs since Vietnam has 20 per cent,' said an industry insider. The US-Vietnam deal will see American goods enter Vietnam duty-free while the US charges 20 per cent tariffs on Vietnamese goods instead of the 46 per cent tariffs announced by Mr Trump in April. Goods made in other nations, such as China, that are trans-shipped from Vietnam will be charged a higher tariff of 40 per cent, addressing an issue that has long rankled with the US. The countries' negotiators are, however, still in talks to finalise the details of the deal. China, which had been hit by a different set of tariffs springing from on its role in the fentanyl smuggling and alleged unfair trade practices, also reached a trade truce with the US in late June. However, the details are under wraps and Washington has already complained of slow progress in China's promise to resume tech industry's demand for rare earth-related exports to the US. Stressful times ahead While the government negotiators haggle over clauses, Asia's businesses are gearing up for tough times. The tariffs are expected to slow economic growth, increase consumer prices, trigger job losses, and trigger market volatility in the region. Mr Bai Tsan-jung, chairman of Sun Jen Textile Company in Taiwan, has not slept well since the US announced in April that it would slap a hefty 32 per cent tariff on goods from the island. Should Taipei fail to negotiate a deal with Washington by July 9, around half of Mr Bai's 110-member workforce may have to be furloughed or forced into early retirement. 'This has been the most stressful and challenging period for my company in our 40-year history – this is worse than Covid or Sars,' he told The Straits Times. His business had already seen sales dwindle for some years as customers have turned to China for cheaper materials, but he said that it has survived because of the high quality of the textiles his firm produces. 'But a steep US tax on our goods could be the final blow for us,' he added. Mr Bai's company, which produces nylon and other yarn, does not export directly to the US, but its main customers – garment factories in Taiwan, Indonesia and Vietnam – do. 'US tariffs do not affect only the companies that sell directly to the US – everyone in the supply chain is impacted,' he said. 'If those factories suffer because of tariffs, they won't take orders from my company either.' There is a similar sense of uncertainty over at TopTowel, an original equipment manufacturer of towels for sportswear and lifestyle brands. The US accounts for around 18 per cent of the firm's exports. Mr Bruce Chang, the company's sales manager, said that the firm has been trying to secure orders in more countries. He told ST over the telephone: 'I'm currently in Japan, meeting with potential partners and clients. The huge uncertainty over the US tariffs means that we need to look at opening up new markets, such as Australia and Europe.' Taipei, whose economy is heavily reliant on exports, has scrambled to reach compromise and to show Washington that it takes trade rules seriously as the spectre of hefty US tariffs looms. The island has repeatedly vowed to ensure that it does not become a place for Chinese exporters to dodge US tariffs with fake 'Made in Taiwan' labels. It has also pledged to buy more American goods, including US natural gas, to help narrow the trade deficit. In Kuala Lumpur, analysts believe that a negative impact on the domestic economy is the cards, irrespective of whatever deal is struck. There are growing expectations that Malaysia's central bank will cut interest rates by 25 basis points to 2.75 per cent at its next policy meeting, coincidentally falling on July 9. 'We expect the cut to materialise largely as a means of preempting a potential slowdown in domestic demand,' said a June 25 HSBC report. Additional reporting by Nirmala Ganapathy in New Delhi, Walter Sim in Tokyo, Wahyudi Soeriaatmadja in Jakarta and Philip Wen in Bangkok
AsiaOne
an hour ago
- AsiaOne
Japan, South Korea hit with 25% tariffs as Trump ramps up trade war in letters to leaders, World News
WASHINGTON/BRUSSELS — US President Donald Trump on Monday (July 7) began telling trade partners — from powerhouse suppliers like Japan and South Korea to minor players — that sharply higher US tariffs will start Aug 1, marking a new phase in the trade war he launched earlier this year. The imposition of the 25 per cent levy on US importers of all goods from key Asian allies Japan and South Korea rattled Wall Street, with the S&P 500 Index suffering its biggest drop in three weeks. The 14 countries sent letters so far, which included smaller US exporters like Serbia, Thailand and Tunisia, hinted at opportunities for additional negotiations while at the same time warning that any reprisal steps would be met with a like-for-like response. "If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25 per cent that we charge," Trump said in letters, released on his Truth Social platform, to Japan and South Korea. The higher tariffs take effect August 1, and notably will not combine with previously announced sector tariffs such as those on automobiles and steel and aluminium. That means, for instance, that Japanese vehicle tariffs will remain at 25 per cent, rather than the existing 25 per cent auto sector tariff climbing to 50 per cent with the new reciprocal rate as has occurred with some of Trump's tariffs. The clock has been ticking for countries to conclude deals with the US after Trump unleashed a global trade war in April that has roiled financial markets and sent policymakers scrambling to protect their economies. Trading partners got another reprieve as Trump signed an executive order on Monday extending the Wednesday deadline for negotiations to August 1. Asked if the deadline was firm, Trump said: "I would say firm, but not 100 per cent firm. If they call up and they say we'd like to do something a different way, we're going to be open to that." Trump has kept much of the world guessing on the outcome of months of talks with countries hoping to avoid the hefty tariff hikes he has threatened. The rate for South Korea is the same as Trump initially announced, while the rate for Japan is 1 point higher than the one announced on April 2. A week later, he capped all of the so-called reciprocal tariffs at 10 per cent until Wednesday. Only two agreements have so far been reached, with Britain and Vietnam. Wendy Cutler, vice president of the Asia Society Policy Institute, said it was unfortunate Trump was hiking tariffs on imports from two of the closest US allies, but there was still time for a breakthrough in negotiations. "While the news is disappointing, it does not mean the game is over," Cutler said. Trump said that the United States would impose 25 per cent tariffs on goods from Tunisia, Malaysia and Kazakhstan; 30 per cent on South Africa, Bosnia and Herzegovina; 32 per cent on Indonesia; 35 per cent on Serbia and Bangladesh; 36 per cent on Cambodia and Thailand and 40 per cent on Laos and Myanmar. South Korea said it planned to intensify US trade talks and considers Trump's latest plan as effectively extending a grace period on implementing reciprocal tariffs. "We will step up negotiations during the remaining period to reach a mutually beneficial result to quickly resolve the uncertainties from tariffs," the country's Industry Ministry said. South African President Cyril Ramaphosa said the 30 per cent US tariff rate was unjustified given that 77 per cent of US goods enter South Africa with no tariffs. Ramaphosa's spokesperson said his government would continue to engage with the US There was no response from the Japanese embassy in Washington. Market drop US stocks fell in response, the latest market turmoil as Trump's trade moves have whipsawed financial markets and sent policymakers scrambling to protect their economies. US stocks were driven to near bear-market territory by his cascade of tariff announcements through the early spring but quickly rebounded to record highs after he put the stiffest levies on hold on April 9. The S&P 500 closed down about 0.8 per cent. US-listed shares of Japanese automotive companies fell, with Toyota Motor closing down four per cent and Honda Motor off by 3.9 per cent. The dollar surged against both the Japanese yen and the South Korean won. "Tariff talk has sucked the wind out of the sails of the market," said Brian Jacobsen, chief economist at Annex Wealth Management. Most of the announced tariff rates have been rounded down, he added, and the letters come across as "take it or leave it" offers. US Treasury Secretary Scott Bessent said earlier on Monday he expected several trade announcements in the next 48 hours, adding that his inbox was full of countries' last-ditch offers. Trading blocs The European Union will not be receiving a letter setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday. The EU still aims to reach a trade deal by Wednesday after European Commission President Ursula von der Leyen and Trump had a "good exchange," a commission spokesperson said. The EU has been torn over whether to push for a quick and light trade deal or leverage its economic clout to negotiate a better outcome. It had already given up hopes for a comprehensive trade agreement before the July deadline. The president also threatened leaders of developing nations in the BRICS group, who are meeting in Brazil, with an additional 10 per cent tariff if they adopt "anti-American" policies. The group includes Brazil, Russia, India and China among others. [[nid:719915]]
Business Times
an hour ago
- Business Times
Trump hits Malaysia with 25% tariffs, 32% on Indonesia as he announces new tariff rates on 14 countries
[WASHINGTON] US President Donald Trump on Monday began telling trade partners – from powerhouse suppliers like Japan and South Korea to minor players – that sharply higher US tariffs will start on Aug 1, marking a new phase in the trade war he launched earlier this year. The 14 countries sent letters so far, which included smaller US exporters, hinted at opportunities for additional negotiations while at the same time warning that any reprisal steps would be met with a like-for-like response. Trump said Monday that the United States would impose 25 per cent tariffs on goods from Tunisia, Malaysia and Kazakhstan; 30 per cent on South Africa, Bosnia and Herzegovina; 32 per cent on Indonesia; 35 per cent on Serbia and Bangladesh; 36 per cent on Cambodia and Thailand and 40 per cent on Laos and Myanmar. 'If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge,' Trump said in letters, released on his Truth Social platform, to Japan and South Korea. The higher tariffs, levied on US importers of foreign goods, take effect on August 1, and notably will not combine with previously announced sector tariffs such as those on automobiles and steel and aluminum. That means, for instance, that Japanese vehicle tariffs will remain at 25 per cent, rather than the existing 25 per cent auto sector tariff climbing to 50 per cent with the new reciprocal rate as has occurred with some of Trump's tariffs. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The clock has been ticking for countries to conclude deals with the US after Trump unleashed a global trade war in April that has roiled financial markets and sent policymakers scrambling to protect their economies. Trading partners got another reprieve as Trump signed an executive order on Monday extending the Wednesday deadline for negotiations to Aug 1. Trump has kept much of the world guessing on the outcome of months of talks with countries hoping to avoid the hefty tariff hikes he has threatened. The rate for South Korea is the same as Trump initially announced, while the rate for Japan is 1 point higher than the one announced on April 2. A week later, he capped all of the so-called reciprocal tariffs at 10 per cent until Wednesday. Only two agreements have so far been reached, with Britain and Vietnam. Wendy Cutler, vice-president of the Asia Society Policy Institute, said it was unfortunate Trump was hiking tariffs on imports from two of the closest US allies, but there was still time for a breakthrough in negotiations. 'While the news is disappointing, it does not mean the game is over,' Cutler said. South Korea said it planned to intensify US trade talks and considers Trump's plan for a 25 per cent tariff from August 1 as effectively extending a grace period on implementing reciprocal tariffs. 'We will step up negotiations during the remaining period to reach a mutually beneficial result to quickly resolve the uncertainties from tariffs,' the country's Industry Ministry said. There was no response from the Japanese embassy in Washington. Market drop US stocks fell in response, the latest market turmoil as Trump's trade moves have repeatedly whipsawed financial markets and sent policymakers scrambling to protect their economies. US stocks were driven to near bear-market territory by his cascade of tariff announcements through the early spring but quickly rebounded to record highs in the weeks after he put the stiffest levies on hold on April 9. The S&P 500 closed down about 0.8 per cent, its biggest drop in three weeks. US-listed shares of Japanese automotive companies fell, with Toyota Motor closing down 4.0 per cent and Honda Motor off by 3.9 per cent. The dollar surged against both the Japanese yen and the South Korean won. 'Tariff talk has sucked the wind out of the sails of the market,' said Brian Jacobsen, chief economist at Annex Wealth Management. Most of the announced tariff rates have been rounded down, he added, and the letters come across as 'take it or leave it' offers. US Treasury Secretary Scott Bessent said earlier on Monday he expected several trade announcements in the next 48 hours, adding that his inbox was full of countries' last-ditch offers. Trading blocs The European Union will not be receiving a letter setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday. The EU still aims to reach a trade deal by July 9 after European Commission President Ursula von der Leyen and Trump had a 'good exchange,' a commission spokesperson said. It was not clear, however, whether there had been a meaningful breakthrough in talks to stave off tariff hikes on the United States' largest trading partner. The EU has been torn over whether to push for a quick and light trade deal or leverage its economic clout to negotiate a better outcome. It had already given up hopes for a comprehensive trade agreement before the July deadline. Trump has also said he could impose a 17 per cent tariff on EU food and agriculture exports. The president also threatened leaders of developing nations in the Brics group, who are meeting in Brazil, with an additional 10 per cent tariff if they adopt 'anti-American' policies. The group includes Brazil, Russia, India and China among others. REUTERS
