Toyo Tire to invest $200m in US plant to offset tariff risks
TOKYO -- Toyo Tire will invest 30 billion yen ($200 million) in its flagship U.S. factory by 2030, Nikkei has learned, as the Japanese company aims to boost tire production capacity for SUVs and other large vehicles.
The U.S. is a key market that generates close to 70% of Toyo Tire's revenue. Currently, about half of the tires are exported from Japan and Serbia, but the company plans to shift production to the U.S. amid pressure from U.S. President Donald Trump and the impact of his "reciprocal" tariffs.
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Asahi Shimbun
2 hours ago
- Asahi Shimbun
Royal Holdings in tie-up to open 21 luxury hotels in Japan by 2035
An architectural rendering of a high-end hotel and resort facility under Minor Hotels' Anantara brand, slated to open in 2030 in Karuizawa, Nagano Prefecture. The facility overlooking Mount Asamayama will boast a 100-meter-long roof. (Provided by Royal Holdings Co.) Restaurant operator Royal Holdings Co. is teaming up with Minor Hotels, the largest hotel group in Southeast Asia, to develop luxury hotel accommodation in the Japanese market. The company plans to open 21 hotels across Japan by 2035, targeting wealthy foreign tourists from the more than 36 million people who visit each year. Based in Thailand, Minor Hotels operates more than 560 luxury hotels and resort facilities in 57 countries. It is also a member of the Global Hotel Alliance, the world's largest alliance of independent hotel brands, serving 30 million members. It will be Minor Hotels' first foray into Japan. Royal Holdings and Minor Hotels established a joint venture earlier this year. On July 10, they unveiled plans to open Anantara Karuizawa Retreat, a hotel and resort facility, in Karuizawa, Nagano Prefecture, in 2030, partnering with general real estate firm List Group. Anantara is Minor Hotels' flagship brand. Situated on a 42,000-square-meter plot overlooking Mount Asamayama, the facility will have 51 guest rooms, of which 23 are suites, It will also boast a spa, swimming pool and restaurants. The companies are preparing to apply for confirmation for construction. Accommodation fees and other details have yet to be determined. William Heinecke, founder and chairman of Minor International, which operates Minor Hotels under its umbrella, told a news conference in Tokyo that Japan is the first choice of overseas destination for Thai people. He expressed gratitude that the globally recognized hotel brand of Anantara had been accepted in the Japanese market. Royal Holdings started in-flight catering services and operating a cafe at Fukuoka Airport in 1951. The company has operated the Royal Host family restaurant chain as well as the Shakey's pizza chain since the 1970s. In addition, it operates restaurants at airports, expressway facilities and hospitals, and runs Tenya, a restaurant chain specializing in tempura rice bowls. As for its hotel business, the company opened its first Roynet Hotel (present-day Richmond Hotel) in 1995. It currently manages 43 Richmond Hotels, which target business travelers. 'We want to operate hotels aimed at wealthy visitors from abroad in tourism destinations and cities around the country as a way to expand the scope of our business,' said Royal Holdings President Masataka Abe.
Japan Today
3 hours ago
- Japan Today
What consumers can expect from import taxes as U.S. sets new tariff rates
Trucks transporting containers undergo X-ray scanning at entry gates at the Long Beach Container Terminal (LBCT), one of the most advanced, fully automated container terminals in the U.S., with the the Long Beach International Gateway Bridge in the background at the Port of Long Beach, Calif, on July 31. By DEE-ANN DURBIN and ANNE D'INNOCENZIO American businesses and consumers woke up Friday to find the contours of President Donald Trump's foreign trade agenda taking shape but without much more clarity on how import taxes on goods from dozens of countries would affect them. Late Thursday, Trump ordered new tariff rates for 66 countries, the European Union, Taiwan and the Falkland Islands. Among them: a 40% tariff on imports from Laos, a 39% tariff on goods from Switzerland and a 30% tariff on South African products. Other trade partners, such as Cambodia, had the tax rates on their exports to the U.S. reduced from levels the president had threatened to impose. Trump postponed the start date for all of the tariffs from Friday until Aug. 7. Wendong Zhang, an associate professor in the Dyson School of Applied Economics and Management at Cornell University, said U.S. consumers may be feeling some relief with the tariff rates announced, since many were lower than Trump initially threatened. Indonesia's rate was 19%, for example, down from the 32% Trump announced last spring. But tariffs are a tax, and U.S. consumers are likely to foot at least part of that bill. 'Prices are still going up, they just won't go up as much as in the worst-case scenario,' Zhang said. Companies are dealing with tariffs in various ways. Many automakers appear to be swallowing tariff costs for now. But the world's largest eyewear maker, EssilorLuxottica, said it raised U.S. prices due to tariffs. The maker of Ray-Bans grinds lenses and sunglasses in Mexico, Thailand and China and exports premium frames from Italy. Here's what we know about the tariffs and what their impact will be on U.S. consumers: President Donald Trump unveiled sweeping import taxes on goods coming into the U.S. from nearly every country in April. He said the tariffs were meant to boost domestic manufacturing and restore fairness to global trade. A week later, Trump announced a 90-day pause on the tariffs but did leave in place a 10% tax on most imports. In early July, Trump began sending letters to dozens of countries saying higher tariffs would go into effect Aug. 1 unless they reached trade deals. The administration announced new rates for dozens of countries on Thursday but delayed their implementation until Aug. 7. In the meantime, Trump announced a 35% tariff on imports from Canada would take effect Friday. But Trump delayed action on Mexico and China while negotiations continue. Other duties not specific to countries also remained in place Friday, like a 50% tariff on imported aluminum and steel announced in June. The Trump administration has reached deals with the European Union, Japan and South Korea that put 15% tariffs in place. A deal with the Philippines puts 19% tariffs in place while a deal with Vietnam imposes a 20% levy. On Wednesday, Trump announced a 25% tariff on goods from India and a 50% tariff on goods from Brazil. The U.S. Commerce Department said Thursday that prices rose 2.6% in June, up from an annual pace of 2.4% in May and higher than the Federal Reserve's goal of 2%. Many goods that are heavily imported saw price increases, including furniture, appliances and computers. Zhang, the Cornell economist, said U.S. consumers could see higher prices in the coming months for appliances and other products that contain a large amount of steel and aluminum. Toys, kitchenware, electronics and home goods could also see price spikes. But Zhang said a 15% tariff doesn't mean prices will immediately rise by 15%. Companies were aware of the tariff deadlines and have been trying to stockpile goods and take other measures to mitigate the impacts. Zhang noted that Trump's trade deals often contain specific provisions designed to boost U.S. exports. The agreement with the European Union, for example, calls for European companies to purchase $750 billion worth of natural gas, oil and nuclear fuel from the U.S. over three years. Zhang said semiconductor firms and military contractors could also see bumps in trade. Some U.S. farmers could also see a potential upside, Zhang said. As part of its trade deal, Vietnam agreed to purchase $2 billion in U.S. agricultural products over three years, including corn, wheat and soybeans, according to the International Trade Council. But Zhang cautioned that agricultural agreements tend to be short-lived. Over the longer term, the uncertainty over tariffs could cause countries like China to back away from U.S. agricultural markets and look for other partners, Zhang said. The tariffs will almost certainly result in higher food prices, according to an analysis released this week by the nonpartisan Tax Foundation. The U.S. simply doesn't make enough of some products, like bananas or coffee, to satisfy demand. Fish, beer and liquor are also likely to see price hikes, the foundation said. Conagra Brands, the maker of Hunt's canned tomatoes, Reddi-wip and other brands, said in July that tariffs – particularly the 50% tax on imported aluminum and steel -- will add $200 million annually to its costs. The company said it's shifting some of its suppliers but also expects to raise prices. Ben Aneff, managing partner at Tribeca Wine Merchants and president of the U.S. Wine Trade Alliance, said that beginning Friday shoppers will see prices rise 20% to 25% at his store and others because of tariffs and the declining value of the dollar. 'Nobody can afford to eat the tariff. It gets passed on," Aneff said. Aneff said shoppers haven't felt the impact from higher duties until now because distributors and retailers accelerated shipments from France and other European countries earlier in the year. But with the tariff rate bumping to 15%, Aneff expects European wine prices to jump 30% in September. Ninety-seven percent of clothing and shoes sold in the U.S. are imported, primarily from Asia, according to the American Apparel & Footwear Association said. China leads the pack, but companies have been shifting more of their sourcing to Vietnam, Indonesia and India. And prices are already on the rise. Steve Lamar, president and CEO of of the trade group, declined to estimate price increases because he said the situation continues to be in flux. He also said shoppers will see higher costs from tariffs play out in other ways starting this fall. Companies may drop products because they're too expensive or reduce promotions, he said. Matt Priest, president and CEO of the Footwear Distributors and Retailers of America, estimates prices for shoes are starting to go up for the back-to-school shopping season. He estimates price increases in the 5% to 10% range. Lululemon said in June that price increases will be modest and apply to a small portion of its assortment, while Ralph Lauren said it would be hiking prices for this fall and next spring to offset tariffs. Bjorn Gulden, CEO of Germany-based Athletic wear giant Adidas, told investors Wednesday that the company is reviewing different price increases for products for the U.S. but no decision has been made. 'Tariffs (are) nothing else than a cost,' he said. 'And regardless of what people are saying, you can't just throw a cost away. It's there.' Some automakers have already raised prices to counteract tariffs. Luxury sports car maker Ferrari said Thursday it was waiting for more details of Trump's trade deal with the European Union before scaling back a 10% surcharge it put in place in April on most vehicles in the U.S. But for the most part, automakers haven't been raising prices as they wait for details of the trade deals. Kelley Blue Book, which monitors car pricing, said the average U.S. new car cost $48,907 in June, which was up just $108 from May. But that could change. General Motors said last week that the impact of the tariffs could get more pronounced in the third quarter of this year. GM has estimated that the tariffs will cost it $4 billion to $5 billion this year. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Yomiuri Shimbun
3 hours ago
- Yomiuri Shimbun
Trump Executive Order Sets No Date to Cut Auto Tariff;U.S., Japan Begin to Diverge on What Agreement Means
Uncertainty has yet to be dispelled over details of an agreed-upon automobile tariff to be imposed on Japan by the United States. An executive order issued Thursday by the White House to impose a 15% tariff on Japan will place a heavy burden on Japanese companies. But the order did not specify an actual date for when the duty on automobiles will be reduced from the current 27.5% to 15%. The Japanese government has boasted of that reduction as the key result of its recent tariff negotiations with the United States. 'It is so disappointing, as we were hoping that [the auto tariff] would be reduced at the same time as the reduction of the 'reciprocal tariff,'' an executive of a leading automaker said after learning that the executive order issued by U.S. President Donald Trump made no mention of an automobile tariff. Since April, a 27.5% tariff has been levied on automobiles. The recent Japan-U.S. agreement is supposed to reduce the tariff to 15%, but when it will be implemented is uncertain. The car tariff squeezes manufacturers' bottom lines. 'It is becoming a burden day by day,' said a senior automaker official. 'We hope the updated tariff rate will be applied as soon as possible.' Economic revitalization minister Ryosei Akazawa said Friday, 'We will urge [the United States] to take steps to fulfill the agreement as soon as possible.' However, the reciprocal tariff and the car tariff are based on different laws. The United Kingdom waited more than a month to see a lower tariff levied on its cars after reaching an agreement with the United States. Many products affected Meanwhile, the reciprocal tariff on most Japanese exports will be set at 15% from Thursday. 'While the hurdle has been lowered [from the initially announced rate], the impact of the tariff remains unclear,' said Hitoshi Suzuki, president of sake brewery Ichinokura Co. in Osaki, Miyagi Prefecture. Riding a Japanese cuisine boom, Ichinokura has built up its exports to the United States, and the tariff hike comes as a significant blow. Sake was subject to nearly zero tariffs at 3 cents per liter, but that will now rise to 15%. Tariffs on fishery products will also increase. A seafood processing company in Mombetsu, Hokkaido, has doubled its scallop exports to the United States since China imposed an import ban on Japanese seafood products in 2023. 'If we pass on the tariff increase through our prices, customers in the United States may hesitate to buy,' the president of the company said. According to the Japanese government, products with original tariff rates of 15% or higher will continue to be subject to the same tariff rates. This was a special measure agreed upon between the European Union and the United States, and Japan had also agreed to the same mechanism. However, this was not explicitly stated in Thursday's executive order. Even Akazawa, who led the negotiations, told reporters Friday, 'We need to examine the details' of the agreements. No joint document made The lack of a joint agreement document has also made the deal unclear. U.S. Treasury Secretary Scott Bessent said in an interview with Fox News on July 23, 'We'll evaluate [Japan's performance] every quarter and if the president's unhappy then we'll boomerang it back to the 25% tariff rate, both on cars and the rest of their products.' Itochu Corp. Executive Vice President Tsuyoshi Hachimura said Friday at a press conference: 'The agreement has not been put into writing, and there is even talk of evaluating [Japan's performance], so nothing has been decided yet. At this stage, it is better not to be too positive.' The government also intends to take domestic measures. 'We will make every effort to mitigate the impact on industry and employment, such as providing financial support,' Prime Minister Shigeru Ishiba said when he heard opinions from the automobile industry in Tokyo on Thursday. Saisuke Sakai of Mizuho Research & Technologies, Ltd. pointed out uncertainty for companies, saying that the impact on small and medium-sized enterprises would be particularly significant. 'It is necessary for the public and private sectors to work together not only to provide financial support to companies but also to help them shift away from dependence on exports to the United States and develop products with high added value,' Sakai said.
