US treasury secretary says Japan trade deal ‘remains possible'
TOKYO : US treasury secretary Scott Bessent said Friday that a trade deal with Japan remained possible, following talks in Tokyo ahead of the looming Aug 1 imposition of new tariffs.
'A good deal is more important than a rushed deal, and a mutually beneficial trade agreement between the US and Japan remains within the realm of possibility,' Bessent said on X.
'I look forward to continuing formal talks in the future,' Bessent said following discussions with Japanese Prime Minister Shigeru Ishiba and trade envoy Ryosei Akazawa.
US President Donald Trump imposed tariffs on imports of Japanese cars, steel and aluminium earlier this year.
Trump sent letters to Japan and a string of other countries earlier this month informing them that higher import tariffs will kick in on Aug 1 unless they reach a deal with the US.
For Japanese imports, the additional tariff was set at 25%.
It was the second time the US president has set a deadline after he postponed tariffs on almost all countries in April for 90 days.
Recent weak export data, including a sharp drop in vehicle exports to the US, raised fears that Japan, the world's fourth-largest economy, could tip into a technical recession.
Trump this week poured cold water on the prospects of an agreement, saying Japan won't 'open up their country'.
Earlier this month, Ishiba, who faces tough upper house elections on Sunday that could end his premiership, said: 'We will not easily compromise.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BusinessToday
31 minutes ago
- BusinessToday
Elevated Volatility Anticipated For USD, MYR Pair
The Malaysian ringgit has displayed unexpected strength this week, hovering around the 4.22-4.23 mark against the US dollar as the Dollar Index (DXY) slipped below 98.0. This performance comes amidst shifting global currency dynamics and anticipation surrounding crucial trade negotiations. The US dollar faced downward pressure early in the week without a clear immediate catalyst. However, a stronger Euro, bolstered by defensive reallocations ahead of the August 1 deadline for potential US-EU tariffs, appears to have driven the greenback's weakness. Markets seem to be favoring the Euro in light of these trade uncertainties. Concurrently, the Japanese Yen also gained ground following a newly inked US-Japan trade agreement, further contributing to the US dollar's softening. These movements provided a tailwind for risk assets, prompting a rotation of investments from the US into emerging markets. From a data perspective, the US labour market remains firm, contrasting with emerging signs of weakness in housing data. Ahead of the Federal Reserve's upcoming policy decision – where a no-change in interest rates is widely expected – market attention will be fixed on key economic reports. These include the JOLTS (Job Openings and Labor Turnover Survey) report, ADP private sector jobs data, and the advance Q2 2025 GDP reading. A string of positive surprises from these indicators could reignite hawkish Federal Reserve expectations, potentially strengthening the US dollar. The outcome of the US-EU tariff deal, along with other pending negotiations, will also be closely watched in the run-up to Friday's deadline. Outlook for the Ringgit Kenanga Research indicates that softer US data will be necessary to support their call for a September Fed rate cut. For now, the consensus points towards a resilient US economy. A favorable US-EU trade deal is expected to further support the Euro and overall risk sentiment globally. For the Malaysian ringgit, a significant near-term risk remains the ongoing trade talks with the US. As Minister of Investment, Trade, and Industry Tengku Zafrul Abdul Aziz recently confirmed, negotiations are intensifying to reduce an impending 25% US import tariff to below 20% before the August 1 deadline. A 'no-deal' outcome from these discussions could exert considerable downward pressure on the ringgit. Given the data-heavy week and the politically sensitive trade negotiations, currency analysts expect elevated volatility for the USD/MYR pair, anticipating it to trade within the 4.20–4.25 range. Technically, the USD/MYR is currently anchored near its 5-day Exponential Moving Average (EMA) at 4.23, with immediate support at 4.22 and resistance at 4.23. Related
The Star
2 hours ago
- The Star
EU, US could reach framework trade deal this weekend, EU officials say
FILE PHOTO: U.S. and European Union flags and a "tariffs" label are seen in this illustration taken April 10, 2025. REUTERS/Dado Ruvic/Illustration/File Photo BRUSSELS (Reuters) -The European Union and the United States could reach a framework deal on trade this weekend, ending months of uncertainty for European industry, EU officials and diplomats said on Friday. The deal would likely include a 15% baseline tariff on all EU goods entering the United States and probably a 50% tariff on European steel and aluminium, the officials and diplomats said. U.S. President Donald Trump on Friday said there was a 50-50 chance or perhaps less that the United States would reach a trade agreement with the European Union, adding that Brussels wanted to "make a deal very badly". One of the sources said a weekend deal seemed likely as the "agreement is basically in the hands of Trump now." A source familiar with the negotiations said there was a "good chance" European Commission President Ursula von der Leyen would meet Trump in Scotland over the weekend. A spokesperson for the Commission did not respond to multiple requests for comment on a possible meeting. Trump will visit his golf course on Scotland's west coast and is set to meet British Prime Minister Keir Starmer on Monday. Combining goods, services and investment, the EU and the United States are each other's largest trading partners by far. The American Chamber of Commerce to the EU warned in March that any conflict jeopardised $9.5 trillion of business in the world's most important commercial relationship. The EU is facing U.S. tariffs on more than 70% of its exports - 50% on steel and aluminium, 25% on cars and car parts and a 10% levy on most other EU goods, which U.S. President Donald Trump has said he would hike to 30% on August 1, a level EU officials said would wipe out whole chunks of transatlantic commerce. Further tariffs on copper and pharmaceuticals are looming. The EU has prepared countermeasures that could enter into force on August 7 in the event that talks collapse. (Reporting by Julia Payne and Jan Strupczewski; Editing by David Holmes)
The Star
3 hours ago
- The Star
Indonesia court convicts aide of former president Megawati in blow to opposition
JAKARTA: An Indonesian court convicted a senior aide to former President Megawati Soekarnoputri in a corruption case, dealing a blow to the leadership of the nation's main opposition party. The Central Jakarta District Court on Friday (July 25) found Hasto Kristiyanto (pic), secretary general of Megawati's Indonesian Democratic Party of Struggle (PDI-P), guilty of bribing a former election commission official in 2019 to facilitate the replacement of a member of parliament. Hasto was sentenced to three and a half years in prison and fined 250 million rupiah (US$15,319). The court acquitted him of a separate charge of obstructing a corruption investigation into a fugitive linked to the party. Both parties have seven days to appeal the verdict. Prosecutors had sought a seven-year sentence. The case has revived longstanding concerns about judicial independence in the South-East Asian democracy, particularly as other opposition-linked figures come under legal scrutiny. Last week, a vocal government critic and former trade minister was convicted in a graft case related to sugar imports. Hasto has consistently denied wrongdoing. He said Friday that his verdict was similar to what the former minister had experienced, "where the law becomes a tool of power.' Prosecutors previously have denied any ulterior motive in the case. The ruling represents a setback for PDI-P, the largest party in parliament and the sole major party outside the ruling coalition of President Prabowo Subianto. The imprisonment of a senior official could diminish the party's parliamentary influence, and prompt internal debates over whether to continue its relatively non-adversarial stance or emerge as a stronger opposition force. Political analysts have long perceived the charges against Hasto as politically driven, in part because they stemmed from events dating back years and because of the timing of a falling-out with former President Joko Widodo. The case originated late last year after PDI-P formally ended its alliance with Widodo for endorsing Prabowo rather than the party's own candidate in Indonesia's presidential election. In court, Hasto had claimed he was threatened with arrest if his party went ahead with expelling Widodo. The former president has denied any involvement in the alleged threat, telling reporters in March that there would be no point in threatening someone not to expel him. "What would I gain? What would I lose?' he said according to local media outlet Detik News. The verdict comes a week after Thomas Trikasih Lembong, the former trade minister and a vocal critic of both Widodo and Prabowo in recent years, was found guilty in a case related to sugar imports a decade ago. Both Lembong and prosecutors this week filed appeals in the case. - Bloomberg
