Japan tariff negotiator held 'in-depth' talks with Lutnick, Japan government says
He expressed doubt that a deal could be reached with Japan on Tuesday, and suggested he could impose a tariff of 30 per cent or 35 per cent on imports from Japan, well above the 24 per cent tariff rate he announced on Apr 2.
Japanese Prime Minister Shigeru Ishiba on Wednesday said he was determined to protect his country's national interests as trade negotiations with the US struggled, noting that his country was the largest investor in the United States.
Tokyo has yet to secure a trade deal after nearly three months of negotiations as it scrambles to find ways to get Washington to exempt Japan's automakers from 25 per cent automobile industry-specific tariffs, which are hurting the country's manufacturing sector.
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CNA
43 minutes ago
- CNA
US tariffs to kick in Aug 1, barring trade deals
WASHINGTON: US tariffs will kick in on Aug 1 if trading partners from Taiwan to the European Union do not strike deals with Washington, Treasury Secretary Scott Bessent said on Sunday (Jul 6). The rates will "boomerang back" to the sometimes very high levels which President Donald Trump had announced on Apr 2, before he suspended the levies to allow for trade talks and set a Jul 9 deadline for agreement, Bessent told CNN. Bessent confirmed comments by Trump to reporters aboard Air Force One on Friday in which he also cited a new deadline: "Well, I'll probably start them on Aug 1." The president told reporters Sunday he had signed 12 letters to inform countries of rate hikes, to be sent out on Monday. "I think we'll have most countries done by Jul 9, either a letter or a deal," Trump told reporters Sunday, adding that some deals have already been made. Standing at his side, US Commerce Secretary Howard Lutnick confirmed tariffs would kick in on Aug 1, "but the President is setting the rates and the deals right now." The tariffs were part of a broader announcement in April where Trump imposed a 10 per cent duty on goods from almost all trading partners, with a plan to step up these rates for a select group within days. But he swiftly paused the hikes until Jul 9, allowing for trade talks to take place. Countries have been pushing to strike deals that would help them avoid these elevated duties. So far, the Trump administration has unveiled deals with the United Kingdom and Vietnam, while Washington and Beijing agreed to temporarily lower staggeringly high levies on each other's products. Bessent said the administration was "close to several deals". "I would expect to see several big announcements over the next couple of days," he said. But he would not say which countries he was referring to, adding: "I don't want to let them off the hook." "MAXIMUM PRESSURE" PLAYBOOK Aboard Air Force One on Friday, Trump said sending notices would be much easier than "sitting down and working 15 different things ... this is what you have to pay, if you want to do business (with) the United States". Bessent pushed back at CNN host Dana Bash's assertion the administration was using threats rather than negotiations, and denied that Trump was setting a new deadline with the Aug 1 date. "It's not a new deadline. We are saying, this is when it's happening. If you want to speed things up, have at it. If you want to go back to the old rate, that's your choice," he said. He said the playbook was to apply "maximum pressure" and cited the European Union as an example, saying they are "making very good progress" after a slow start. EU and US negotiators are holding talks over the weekend, and France's finance minister said on Saturday he hoped they could strike a deal this weekend. Other countries were still expressing unease, however. Japan's Prime Minister Shigeru Ishiba said on Sunday he "won't easily compromise" in trade talks with Washington. And BRICS leaders of fast-growing economies meeting in Rio de Janeiro raised "serious concerns" that the "indiscriminate" import tariffs were illegal and risked hurting global trade. When probed about worries that steep levies could feed into broader US inflation, Bessent said there was a difference between "inflation and one-time price adjustments."
Business Times
an hour ago
- Business Times
Singapore's 240,000 millionaires spur spending on luxury brands
[SINGAPORE] Luxury spending is defying a global slump in wealthy Singapore, a beacon for high-end retailers grappling with sluggish demand in major markets including China and the US. Luxury sales in the South-east Asian city-state are expected to climb 7 per cent to S$13.9 billion this year compared to 2024, outpacing heavyweight regional shopping hubs Japan, China and South Korea, according to data shared with Bloomberg by Euromonitor International. The country's 2024 year-on-year growth surged past every other Asian market tracked by the analytics firm, except Japan. Next year, it's projected to catch up to its 2019, pre-Covid-19 peak of S$14.7 billion. Singapore covers just 725 square kilometres, fewer than New York City, and its population of around six million is dwarfed by the likes of Asian megacities such as Tokyo and Shanghai. Yet it had the third-largest share of luxury store openings last year among 32 Asia-Pacific cities excluding those in China's mainland, according to data shared with Bloomberg by commercial real estate firm Savills. That's benefiting places such as The Shoppes at Marina Bay Sands, where Italian label Marni opened its first store in August last year. The mall provides services such as buggies to drive VIPs around for personalised styling sessions, and is set to launch salons previewing unreleased luxury collections for top clients, said Hazel Chan, senior vice-president of retail. Brands are also ramping up invitation-only sales events, now held several times a week, reflecting a pivot towards ultra-personalised shopping, said Irene Ho, chief executive officer of marketing group The Luxury Network Singapore. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up 'Singapore has proved to be a very stable place for wealthy people. That has created a very strong local base for the luxury market,' said Jonathan Siboni, founder and CEO of consultancy Luxurynsight. 'Singapore is an oasis in the desert.' Luxury's testing ground The city-state is a rare bright spot in a luxury market dimmed by China's slowdown. Decades of pro-wealth policies have drawn high-net-worth individuals and built a robust finance sector, making it one of the world's richest countries. Its strength is reinforced by political stability and rising local affluence. Singapore now reportedly counts over 240,000 millionaires, and median household employment income has risen for five straight years. With visitors from countries including not just China and the US but Indonesia and India driving tourists' retail spend to S$3.9 billion from January to September 2024, up 5 per cent year on year, Singapore is doubling as both a safe haven and strategic gateway for luxury brands targeting South-east Asia. Brands attracted to Singapore's inbound wealth and clients versed in both Western and Asian aesthetics have begun using the market as a 'controlled launchpad' to test retail ideas, said Angelito Perez Tan, Jr, co-founder and CEO of RTG Group Asia, whose businesses include a luxury consultancy. 'These aren't just gimmicks, they are strategic soft launches that test how consumers engage emotionally with the brand,' he said. Despite its glitz, Singapore remains home to millions of people who are not millionaires, and its government has been facing a delicate balancing act as it works to narrow the country's wealth gap. Efforts to support the nation's working class hinge partly on raising taxes on the wealthy, but risks driving them away, with some now considering alternative locations such as Dubai. Singapore's banks stepped up scrutiny of wealthy clients last year, following a record S$3 billion money laundering scandal that exposed weaknesses in how banks and brokerages in the country screen their customers. Still, the probe has only reinforced Singapore's credibility among the rich by proving that it protects wealth, identity and reputation through the rule of law, said RTG's Tan. 'It showed that the system works, and that's exactly what matters to legitimate high-net-worth individuals,' he said. 'When there's that kind of trust, spending naturally follows. That trust and validation are key reasons why luxury spending in Singapore has remained relatively steady, even as the broader region cools.' Spending is flowing across all segments of the luxury industry and brands are fighting for attention. Tapestry's affordable luxury brand Coach opened its first-ever bar in May, tucked into a Singapore heritage shophouse and serving up customised martinis and New York City-style street snacks. High-end watchmaker Audemars Piguet Holding, meanwhile, opened AP Cafe inside its boutique, offering Swiss-Singaporean dishes incorporating wonton skins and chicken rice alongside couture. Raffles City mall also entered the luxury beauty game in 2024 with massive pop-ups. This year, 21 brands – including Armani Beauty, YSL Beauty, Chanel, Dior and Gucci – are on the bill. The upgrades are inspiring Singaporeans such as Chloe Liem, 22, an avid collector of jewellery from brands such as Richemont's Van Cleef & Arpels and Cartier. 'Even though I know luxury items are crazily marked up, I understand I'm paying for the experience and feeling of the brand,' she said. 'I feel confident splurging on these items because I enjoy it.' BLOOMBERG
Business Times
an hour ago
- Business Times
TikTok building new version of app ahead of expected US sale: report
[BENGALURU] TikTok is building a new version of its app for users in the United States ahead of a planned sale of the app to a group of investors, The Information reported on Sunday (Jul 6), citing unnamed sources. This comes as US President Donald Trump said on Friday he will start talking to China on Monday or Tuesday about a possible TikTok deal. He said the United States 'pretty much' has a deal on the sale of the TikTok short-video app. TikTok has developed a plan to launch the new app to US app stores on Sep 5, the report said. Last month, Trump extended to Sep 17 a deadline for China-based ByteDance to divest the US assets of TikTok. The report added that TikTok users will eventually have to download the new app to be able to continue using the service, although the existing app will work until March of next year, though the timeline could change. TikTok did not immediately respond to a Reuters request for comment. Reuters could not immediately confirm the report. A deal had been in the works earlier this year to spin off TikTok's US operations into a new US-based firm, majority-owned and operated by US investors. That was put on hold after China indicated it would not approve it following Trump's announcements of steep tariffs on Chinese goods. Trump said the United States will probably have to get a deal approved by China. REUTERS
