Japan-U.S. talks hit a wall, Tokyo not backing down
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Shares steady, dollar firms on US tariff letters; oil dips
By Rocky Swift TOKYO (Reuters) -Stock markets in Asia took in stride the latest twist in U.S. President Donald Trump's tariff roll-out on Tuesday, as the dollar held onto gains and oil retreated. Shares on Wall Street fell after Trump sent letters to 14 countries, including Japan and South Korea, unveiling sharply higher tariffs on imports into the United States, while also postponing their implementation to August 1. Japan's Nikkei stock gauge opened lower but then turned positive after Trump described that deadline as "firm, but not 100% firm" and said tariffs may be adjusted for some countries. The Aussie dollar rose ahead of a Reserve Bank of Australia decision later in the day. Market reaction to the tariff announcements was muted on memories of Trump's rapid walk back of his "Liberation Day" duties initially set out on April 2, said Tapas Strickland, head of market economics at National Australia Bank. "There's going to be a lot of volatility as the headlines start to emerge, as more of these letters come out, and as the negotiations really come to the fore ahead of that August 1 deadline," Strickland said on an NAB podcast. In April, Trump capped all of the so-called reciprocal tariffs with trading partners at 10% until July 9 to allow for negotiations. Only two agreements, with Britain and Vietnam, have been reached. In June, Washington and Beijing agreed on a framework covering tariff rates, restoring a fragile truce in their trade war. Tariffs on Japan and South Korea are now due to go up to 25% on August 1. Japanese Prime Minister Shigeru Ishiba called the hike deeply regrettable and said his nation would continue negotiations with the U.S. 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. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2% in early trade. Japan's Nikkei stock index rose 0.4% while South Korea's KOSPI jumped 1.5%. The dollar rose 0.2% to 146.36 yen, touching a two-week high. The euro was flat at $1.1741. The Aussie advanced 0.4% to $0.6516 before a meeting by the central bank where policymakers are widely expected to deliver a 25-basis-point cut. U.S. crude dipped 0.5% to $67.59 a barrel after surging nearly 2% on Monday. Spot gold edged 0.2% lower. In early trade, pan-region Euro Stoxx 50 futures were down 0.1%, German DAX futures were down 0.1% at 24,133, and FTSE futures slid 0.3%. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Yen stumbles as Trump imposes 25% tariffs on Japan
By Rae Wee SINGAPORE (Reuters) -The yen fell broadly on Tuesday while the dollar held steady as U.S. President Donald Trump unveiled 25% tariffs on goods from Japan and South Korea in the latest development of his chaotic trade war. Trump on Monday began telling trade partners – from powerhouse suppliers like Japan and South Korea to minor players – that sharply higher U.S. tariffs will start August 1. He later said that he was open to extensions if countries made proposals. The announcement rattled investor sentiment, sending the Japanese yen and South Korean won down roughly 1% overnight. Both currencies remained under pressure early on Tuesday, with the yen falling to a two-week low of 146.44 per dollar. The won rose 0.4% to 1370.20 per dollar. Investors entered the week with much confusion over Trump's tariff plans ahead of an initial July 9 deadline. While the new August 1 date offers a brief reprieve, the outlook remains uncertain and global economic concerns persist. "There is still a lot of uncertainty as to where tariff rates will eventually settle and which countries will get what rates, so uncertainty about the global economy is still high and that will keep investors on edge for the time being," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "This is just the start and we'll get more headlines out for sure over the coming days." Japanese Prime Minister Shigeru Ishiba said on Tuesday that Japan would continue negotiations with the United States to seek a trade deal that benefits both countries. South Korea has said it plans to intensify trade talks with the U.S. and views Trump's plan for a 25% tariff from August 1 as effectively extending a grace period on implementing reciprocal tariffs. Other currencies meanwhile gained some ground on Tuesday, after sliding in the prior session when the dollar rebounded. The euro was up 0.27% to $1.1741 after having slid 0.67% on Monday, while sterling edged up 0.17% to $1.3626. The European Union will not receive a letter from the United States setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday, and is eyeing possible exemptions from the U.S. baseline levy of 10%. DOLLAR HOLDS GAINS Against a basket of currencies, the dollar was little changed at 97.40, holding on to most of its gains from Monday when it rose 0.5%. The Australian dollar last traded 0.32% higher at $0.6513, having tumbled 0.9% in the previous session as risk appetite soured. The New Zealand dollar advanced 0.22% to $0.6015, reversing some of Monday's 0.8% fall. The Reserve Bank of Australia announces its rate decision later on Tuesday, where expectations are for the central bank to deliver another rate cut owing to easing inflation and a slowing economy. "Given the ever-shifting balance of risks and the heightened uncertainty it creates for hiring and investment in the Australian economy, more RBA cuts are set to follow," said Carl Ang, fixed income research analyst at MFS Investment Management. "A 3.1% terminal rate by early 2026 remains the base case for this RBA cutting cycle."
Yahoo
an hour ago
- Yahoo
Tariff Deadline POSTPONED – But Japan, South Korea Could Still Face 25% Rate
NewsNation Washington correspondent Kellie Meyer explains that the Trump administration has offered a few weeks' reprieve from the kind of high reciprocal tariffs floated a few months ago. But should trading partners such as Japan fail to come to an agreement by August 1, they'll still be looking at a sharp increase. READ MORE:
