EU Races to Secure US Trade Deal; Japanese PM Suffers Election Setback
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19 minutes ago
EU and Japan agree to work together to promote free trade and economic security
TOKYO -- Leaders of the European Union and Japan launched an alliance Wednesday aimed at boosting economic cooperation, defending free trade and countering unfair trade practices as the two sides face growing challenges from the United States and China. The agreement followed a meeting among European Commission President Ursula von der Leyen, European Council President António Costa and Japanese Prime Minister Shigeru Ishiba. It comes just as Tokyo and Washington reached a new trade deal, which places 15% tariffs on Japanese cars and other goods imported into the U.S., down from an initial 25%. The leaders agreed to launch 'competitiveness alliance" aimed at stepping up trade, economic security and cooperation in innovation, energy and other areas, according to a joint statement released by the EU. The leaders also supported 'a stable and predictable rules-based free and fair economic order,' and reaffirmed the importance of Japan-EU cooperation to uphold multilateral trading system with the World Trade Organization at its core, as well as with other multilateral cooperation efforts. The EU and Japan also agreed to strengthen defense industry cooperation and to start talks on an information security agreement. Japan and the EU have been stepping up their security and defense cooperation amid growing global tensions and conflicts, including Russia's war on Ukraine, conflicts in the Middle East and increasingly assertive China's military activity in Asia, recognizing that challenges in Europe and Indo-Pacific are inseparable.
Forbes
19 minutes ago
- Forbes
Sorry Mr Trump But Your American Cars Won't Sell In Japan. Here's Why.
The Jeep is the biggest selling American-made car in Japan. (Photo By)"n President Trump is chuffed about his recent trade deal with Japan calling it the greatest in U.S. history. "I just signed the largest trade deal in history, I think maybe the largest deal in history with Japan," Trump boasted at the White House on Tuesday evening. Japan also agreed to invest $550bn in the U.S. economy although no details were forthcoming as to which industries or sectors would benefit. Trump shakes hands with Japan's PM Shigeru Ishiba. (Photo by Jim WATSON / AFP) (Photo by JIM ... More WATSON/AFP via Getty Images) Meanwhile Japan's Prime Minister Shigeru Ishiba welcomed the announcement of the 15% reciprocal tariffs—down from 25%, stressing that it was "the lowest figure to date among countries with trade surpluses with the US'. Japan's stock market soared at news of 15% trade deal News of the deal was well-received by the Japanese stock market which saw shares soar with Mazda rising 17%, Toyota swelling by 15%, Mitsubishi up 13%, Honda increasing 11% and Nissan jumping 8%. Mazda, a carmaker who builds the majority of its vehicles in Japan, was particularly concerned about the proposed 25% tariffs. A quarter of Japan's US exports are from its critical automotive sector, which accounts for almost 3% of its economy. And it's with the auto sector that Trump really seems to have no idea what's really happening. The truth is two-fold. Firstly, before Trump started threatening Japan with tariffs, American cars entering the Japanese market, including Jeep, Cadillac and Corvette, were charged a zero tariff. Zilch! Japan has not charged tariffs or imports duties on imported cars from the U.S., or Europe for that matter, since the late 1970s. In contrast, America had imposed a 2.5% tariff on Japanese imports. Corvette sells in small numbers in Japan. (Photo By) But that's only part of the issue. Trump has continually complained that Japan does not take American cars. He has repeatedly said that the Asian nation is not open to U.S. vehicles. After this major trade deal announcement with Japan, Trump is bloating that the country will now open up to U.S. cars, trucks, rice and other agricultural products. Hey, buddy, that is not the reality. Japan is, and always has been open and ready to take all the American cars you wish to export. The bottom line is—apart from Jeep, which is the biggest selling American car in Japan, and a smattering of Cadillac and Corvette models, Japanese motorists, for the most part, don't want to buy American cars. Not even Tesla EVs, which do sell in Japan, but are imported from China, so not really seen as American. The fact is that old impressions die hard. From the 1970s through to the early 21st century, a mixture of U.S. cars were offered in Japan—including Ford, GM, Pontiac and Buick, in addition to Chrysler. But even though some brands delivered more stylish designs or more powerful engines than their Japanese counterparts, most American cars were considered too big for Japanese roads and carparks, and not as fuel-efficient or as reliable as Japanese cars, which were, on average, a little cheaper. Other critical factors that led to several brands exiting Japan, like Ford in 2016, were insufficient product lineups, and a poor dealer network. So, with all that in mind Mr Trump, to be honest, it does not matter how many American cars you force on the Japanese market, I cannot see how U.S. brands will sell here, no matter what Trump says. Japanese don't want them. It's like trying to force-feed sushi with wasabi to blue collar American families in the Rust Belt—it is a really tough sell.
Yahoo
27 minutes ago
- Yahoo
Nintendo Switch 2 Sets Record as Fastest-Selling Console in US
(Bloomberg) -- Nintendo Co.'s new Switch 2 console sustained its blistering start to sales globally by setting a new record for the fastest-selling video game device in US history. Trump Awards $1.26 Billion Contract to Build Biggest Immigrant Detention Center in US Why the Federal Reserve's Building Renovation Costs $2.5 Billion Salt Lake City Turns Winter Olympic Bid Into Statewide Bond Boom Milan Corruption Probe Casts Shadow Over Property Boom How San Jose's Mayor Is Working to Build an AI Capital The Japanese company sold 1.6 million units of its $450 console in the US in June, the highest launch month for any console in the country, according to market tracker Circana. The previous high was 1.1 million units for Sony Group Corp.'s PlayStation 4 in 2013. The Switch 2 performance helped more than triple overall game hardware spending, Circana said. Americans spent $978 million on new devices and accessories, from all brands, setting an all-time high for June in a year that saw otherwise declining spending. The new device, of existential importance to Nintendo and its family of game franchises, has been an instant hit with users in its most important markets. At home in Japan, the Switch 2 has also become the fastest-selling console ever, according to the latest Famitsu retail data. Still, Mat Piscatella, executive director at Circana, sounded a note of caution for Nintendo's long-term prospects. 'Launch buyers of any new video game product will be, by nature, the most enthusiastic and least price sensitive,' he wrote in an online post. 'Have to wait until holiday at the earliest before getting a better read on how pricing will work with the more mass market buyer.' Nintendo's bet on a single hardware platform with the original Switch — combining its mobile and home consoles into one — added pressure on the company to get both hardware and software right. It responded by delivering a string of hits that sustained the Switch's popularity, and it's off to a strong start with the Switch 2 as well. Its July 17 release of Donkey Kong Bananza was greeted by positive critical reviews and looks set to power further sales deep into the summer. Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Burning Man Is Burning Through Cash A Rebel Army Is Building a Rare-Earth Empire on China's Border Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All ©2025 Bloomberg L.P. Sign in to access your portfolio
