Latest news with #US-Japanese
Time of India
5 days ago
- Automotive
- Time of India
Trade deal struck: 15% tariff on EU goods entering US
The European Union and the US agreed on Sunday to a broad-brush trade deal that sets a 15% tariff on most goods, including cars, President Trump announced, at least temporarily bringing an end to months of tense negotiations with a bloc that is the US' single biggest source of imports. Trump said that the EU had agreed to purchase $750 billion of American energy and to increase its investment in the US by more than $600 billion above current levels. He also said that the EU would buy military equipment and that no tariffs would be imposed on some goods. Trump implied that the 50% tariff he had imposed on steel and aluminum globally would remain as is, saying it's a "worldwide thing that stays the way it is. " Other details of the pact were not immediately available. The agreement will "rebalance, but enable trade on both sides," Ursula von der Leyen, the president of the European Commission, the executive arm of the EU, said as she sat next to Trump as the leaders made the announcement. "We made it," Trump said. Though the agreement appears to be a preliminary one that leaves many questions to be resolved, it could bring a measure of calm to one of the world's most important economic relationships and allay fears of an escalating trade war. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Stylish New Mobility Scooters Available for Seniors (Prices May Surprise You) Mobility Scooter | Search Ads Search Now Undo The EU last year accounted for nearly $610 billion of the $3.3 trillion in goods imported by the US. The tariff rate is higher than the 10% tax that Europeans had been angling for, and that Trump applied to British goods. But 15% mirrors the main tariff rate of the US-Japanese trade agreement that was announced last Tuesday, and is lower than the 19 and 20% rates imposed on several Southeast Asian countries. The deal followed weeks of unpredictable talks. Even after that announcement, von Der Leyen stressed the importance of continuing talks and trying to reach a negotiated deal. But the EU also continued working to put the finishing touches on a plan to retaliate against Trump's tariffs, one that could be enacted quickly if needed. Bringing down the tariff on European auto exports was a sticking point for the Europeans, especially Germany, the largest EU economy. European automakers, which sent cars worth 38.5 billion euros ($45bn) to the US last year, have been suffering under the 27.5% tariffs imposed by Trump in April. Pharmaceutical tariffs were another key issue. the US threatened last month that it could raise tariffs on pharma - Europe's largest export to the US - to 200%. Such a high tax would have been crushing for the industry. The govts did not clarify what would happen to tariffs on pharmaceuticals.
Business Times
31-05-2025
- Business
- Business Times
Trump celebrates Nippon Steel 'deal' with rally at Pennsylvania plant
[WEST MIFFLIN] US President Donald Trump on Friday (May 30) lauded a 'partnership' between Nippon Steel and US Steel at a political rally but stopped short of clarifying whether he planned to approve the companies' diplomatically sensitive merger. On a Pittsburgh, Pennsylvania-area stage decorated with signs celebrating 'American steel', Trump appeared to signal he would support a long-sought tie-up between the Japanese and US companies that he once opposed. The planned acquisition, initially floated in 2023, has divided the politically important state of Pennsylvania, its heavily unionised blue-collar workforce and introduced tension into the normally friendly US-Japanese relations. ''We're here today to celebrate a blockbuster agreement that will ensure this storied American company stays an American company,' Trump told more than 1,600 people, including hard hat-wearing workers. 'You're going to stay an American company, you know that right? But we're going to have a great partner.' Proponents of the transaction are hoping Trump's visit would end a tumultuous 18-month effort by Nippon Steel to buy the iconic American company, beset by opposition from union leadership and two national security reviews. The White House and the companies have not responded to requests for comment on the status of deal talks. But the deal is likely not entirely done. Trump announced the rally and appeared to endorse the merger last Friday in a social media post, sending US Steel's share price up over 20 per cent as investors bet he would soon give it the elusive greenlight. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up On Sunday, he sowed doubt, describing the deal to reporters not as the full takeover Nippon is seeking but as an investment with 'partial ownership,' and control residing in the US. US Steel is headquartered in Pennsylvania, which symbolised both the one-time strength and the decline of US manufacturing power as the Rust Belt's steel plants and factories lost business to international rivals. The state's population swings between supporting Democrats and Republicans, making it a major prize in presidential elections. 'We would not be here today without President Trump, who has secured the company's future by approving our partnership,' said Nippon vice-chair Takahiro Mori at the Pennsylvania rally before Trump. But in a sign of the many open questions that remain, Japan's top trade negotiator, Ryosei Akazawa, told reporters on Friday that he could not yet comment on the tie-up due to a lack of any official announcements. 'I am aware of the various reports and posts by President Trump on social media. However, there has not yet been an official announcement from the US government,' Akazawa, in Washington for tariff negotiations, said at a briefing at the Japanese Embassy in Washington. Trump technically has until next Thursday to decide whether to formally approve or scuttle the deal, after the Committee on Foreign Investment in the US last week completed a second review of the merger. But the timeline could slip. The road to Friday's rally has been a bumpy one. Nippon Steel offered US$14.9 billion for US Steel in December 2023, seeking to capitalize on an expected ramp up in steel purchases, thanks to the bipartisan infrastructure law. But the tie-up faced headwinds from the start, with both then-President Joe Biden and Trump asserting US Steel should remain American-owned as they sought to woo voters in Pennsylvania ahead of the November presidential elections. Former Vice President Kamala Harris, who became the Democratic nominee in 2024 after Biden stepped aside, also said US Steel should remain domestically owned. Following a previous review, Biden blocked the deal in January on national security grounds. The companies sued, arguing they did not receive a fair review process, a charge the Biden White House disputed. The steel giants saw a new opportunity in the Trump administration, which opened a fresh 45-day national security review into the proposed merger last month. But Trump's public comments, ranging from welcoming a simple 'investment' in US Steel by the Japanese firm to suggesting a minority stake for Nippon Steel, did little to shore up investor confidence in an eventual green light. Reuters reported last week that Nippon Steel had floated plans to invest US$14 billion in US Steel's operations including up to US$4 billion in a new steel mill if the Trump administration green lights its merger bid, in response to requests from the government for more investment. 'This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add US$14 billion dollars to the US Economy,' Trump posted last Friday, breathing new hope into prospects for the tie-up. 'I will see you all at US Steel, in Pittsburgh, on Friday, May 30th, for a BIG Rally. CONGRATULATIONS TO ALL!' REUTERS
Mint
21-05-2025
- Business
- Mint
Bessent, Kato Did Not Discuss FX Levels at G-7, US Says
US Secretary Scott Bessent and Japanese Finance Minister Katsunobu Kato did not discuss foreign exchange levels during a meeting in Canada, according to a statement from the Treasury Department. The news sent the yen lower. Bessent and Kato 'reaffirmed their shared belief that exchange rates should be market determined and that, at present, the dollar-yen exchange rate reflects fundamentals,' the department said Wednesday. The officials met on the sidelines of a meeting of finance ministers and central bank governors from the Group of Seven nations being held in Banff, Canada. Bessent and Kato discussed issues relevant to the US-Japanese economic relationship, including global security and the ongoing bilateral trade discussions between the two nations, the department said. The yen weakened as much as 0.5% to ¥144.40 against the dollar after the news. Japan's currency was the worst performer among its Group of 10 peers against the dollar on Thursday morning in Tokyo. Still, the reaffirmation on the currency helps Kato lower the risk of a rapid weakening of the yen after his ministry has struggled to clearly reverse course in the last few years. The outcome of the meeting suggests the US has no major issue with the yen's appreciation after President Donald Trump accused of Japan taking an unfair advantage by lowering the value of the currency. Any rapid movement in the strength of the yen could increase the chance of a recession, regardless of direction, especially as Japan and the US continue negotiations on a trade agreement. A much weaker yen would fuel inflationary pressures while a stronger currency would squeeze corporate profits and wage momentum as trade concerns are already hurting consumer sentiment. Japan's economy contracted in the first quarter. This was the pair's second face-to-face talk in a month after the two met in April. With assistance from Mia Glass. This article was generated from an automated news agency feed without modifications to text.
DW
19-05-2025
- Politics
- DW
Okinawans split over whether US bases are worth the burden – DW – 05/19/2025
Japan pays the US $1.4 billion each year for the bases in Okinawa, which underpin their military alliance. But does the presence of American troops actually benefit the local population? Okinawa, Japan's only subtropical prefecture, has long been popular with tourists who flock to the island for its warm weather, pristine beaches and turquoise seas. But beyond the picturesque Pacific landscapes and visitors enjoying water sports, the islands are also known for the heavy US military presence since the end of World War II. Tokyo views the more than 30 American military facilities that cover around 25% of Okinawan land as crucial to safeguarding national and regional security and underpinning the US-Japanese alliance. To many Okinawans, however, the US presence feels more like a painful legacy of an occupation that keeps the island and its residents in chains. The US occupied Okinawa after WWII, returning it to Japan in 1972 Image: Chermaine Lee/DW A history of anti-base sentiment Just weeks before my trip to Okinawa, multiple sexual assault allegations against US military personnel were exposed. The reports brought up painful memories of the 1995 gang rape of a 12-year-old Okinawan girl by three US soldiers. Over 80,000 Okinawans took to the streets at the time to protest the US military presence. The arrest of an American suspected of killing a local woman in 2016 also sparked massive protests. Under intense pressure, Japan agreed a deal with the US to return the land used by the Futenma base to Okinawa. While about 4,000 members of the US Marine Corps have been transferred to Guam, thousands more remain, and the return of the land is still very much a pipe dream for Okinawans. When I passed by the site at Henoko Bay, about a dozen protesters had braved the rain to stage a sit-in against the military facilities. Senaga Kazuo, one of the protesters, said they come every weekday to "prevent the expansion of US bases." "Women in Okinawa were sexually assaulted; Kadena and Futenma [bases] created a lot of noise…US [soldiers] come to Okinawa for the US, not for Japan or Okinawa," he told me. A public poll from two local universities in 2023 showed that 70% of Okinawans found the concentration of US military bases in the prefecture to be unfair. Despite the public discontent, US and Japan's defense cooperation is as strong as ever. In February, US President Donald Trump's administration renewed the security pact with Japan amid the growing threat from North Korea and escalating tensions between China and Taiwan. More than a dispute over islands — Japan's fear of China To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Do the US bases protect Okinawa? Expecting the same anger from other locals, I headed into Okinawa's main city Naha. The people I spoke to there, however, were mostly indifferent to the US military — with some even supportive. A female shopkeeper at a local jewellery stand, who preferred to remain anonymous — a sign of the sensitivity of the issue among locals — told me that she thinks the US would protect them if a war breaks out. This view was shared by fashion store worker Ms Kina, who also withheld her first name. She told me that she used to hate the US military, but now she hopes it can protect the island in potential conflicts. Despite the anger provoked by the sexual assault cases and crimes committed by some American soldiers, some Okinawans still don't want the US forces to leave. "Violence happens everywhere, but it's not a reason to drive anyone away," Meikawa Suiko, a silver-haired restaurant owner, told me. While the US-Japan pact ensures the American military would help defend Japan, would local Okinawans be a priority for protection? Image: Kyodo/IMAGO Kozue Akibayashi, professor at the Doshisha University specializing in militarism and gender, told me that's a false narrative that the Japanese government has long fed Okinawans. "The US military is not here to protect the Okinawans. But [the narrative] is like a fantasy floating around … It's a very deep-rooted myth, not only with Okinawans, but worldwide — that militarization is the only method to assure your safety," she said. Akibayashi cited the failed evacuation plan right before the US invasion at the Battle of Okinawa in 1945 that resulted in 100,000 civilian deaths. "Those [plans] didn't work and [Okinawans] were not prioritized," she said. In late March, Japan launched a plan on how to evacuate some 120,000 people from Okinawa in case of a war involving China, which has multiple disputes in the region, including over Taiwan and the Senkaku/Diaoyu islands which are claimed by Tokyo, Beijing and Taipei. The US bases do make Okinawa a target for China, according to Paul O'Shea, senior lecturer at the Centre for East and Southeast Asian Studies at Sweden's Lund University. "There are hundreds, maybe thousands of Chinese missiles trained on US bases on Okinawa. This is a well-understood and inevitable cost of the bases," he told me. However, O'Shea pointed out that the bases also have a deterrent effect and "contribute to maintaining the peace." The presence of US forces and hardware in Okinawa is a highly divisive issue Image: Chermaine Lee/DW Economic burden or lifeline? In addition to the security and diplomatic benefits, the Japanese government says the US military bases in Okinawa are justified because of the economic lifeline they provide to the region. Despite its popularity with tourists, Okinawa is Japan's poorest prefecture. Average incomes are only 70% of the national average and job opportunities are limited, contributing to a poverty rate of 35%. The prefecture, which accounts for less than 1% of Japan's total land area, hosts around 29,000 American soldiers, over 70% of the total stationed in the East Asian country. Japan currently pays $1.4 billion (€1.24 billion) to the US on average each year for the troops and bases, the biggest overseas deployment of American troops. Trump has been pushing Tokyo to pay even more. Despite these issues, the bases in Okinawa have created jobs and economic benefits for the islands: the American Village shopping district generates 33.6 billion yen (about $231 million, €205 million), while over 3,300 people are employed in the area, according to government data from 2015. Wataru Nishino, who works at a tourist center near the American Village, told me that these benefits do help boost America's image, especially among young people who "don't have such bad impressions of the US military because we have more chances to get to know them." "My friend's father works on the base, while another is mixed race [of Japanese and American descent]. They create job opportunities for us — if our English is good we can work on the base," he said. But Okinawa's mayor Denny Tamaki, an opponent of the bases, has said that the jobs they provide only contribute to about 5% of Okinawans' income, while the land the bases occupy, if returned, could generate nearly $7 billion (€6.2 billion). "Why is Okinawa the poorest prefecture? The land, labor and resources spent on maintaining the bases could have been used in other more productive ways, and over time, Okinawa's economy could have grown beyond the bases," O'Shea said. Edited by: Karl Sexton
The Independent
30-04-2025
- Politics
- The Independent
Inside Japan's race to prepare for war on its doorstep
On a clear day, residents of Japan 's picturesque holiday island of Yonaguni can see Taiwan 's mountain ranges rising above the sea mist. For the people living here just 100km away from potentially the biggest flashpoint for conflict in the Asia-Pacific, those mountains serve as a near-daily reminder of the dangers posed by China 's push for territory. Successive Japanese leaders have warned that Taiwan could be the next Ukraine – that Xi Jinping could follow Vladimir Putin 's example and launch an invasion that would risk drawing large swathes of the world into another proxy war. That might all seem hypothetical more than 2,000km away in Tokyo, where the government is currently pushing through the biggest military buildup since the Second World War, doubling its defence budget by 2027 and dramatically expanding the operational capabilities of the Japanese Self Defence Forces (SDF). But on Yonaguni the threat feels very real indeed, with unprecedented drills carried out in recent months to prepare the island for an evacuation. Famous across Japan as a holiday destination and for its unique breed of wild horses, Yonaguni is a tiny outpost jutting out of the East China Sea with a population of just 1,700 people. Since 2016 it has hosted an SDF base that now has around 250 personnel, and they and their families make up an important contingent of island life. During joint US-Japanese exercises late last year known as Keen Sword, the local garrison took part in so-called 'disaster prevention drills' with US forces here for the first time – widely seen as preparations for if Taiwan is attacked. The Independent saw Japanese soldiers pretending to be wounded islanders, carried on stretchers to a waiting American C130 Hercules military transport plane. The drills involved a number of firsts for Yonaguni, including the first time US-made Osprey aircraft – which would be crucial for logistics in the event of a real evacuation – landed and took off on the blustery island. A spokesperson for the SDF confirmed to The Independent that this was a 'larger exercise compared to ones conducted in the past'. A delegation of officials also visited from the wider Okinawa prefecture to discuss the finer details of how an evacuation would take place if Taiwan was invaded. They explained to locals that they would be moved to shelters on a larger island in the archipelago, with the injured taken for treatment at hospital – the island does not have one of its own. The atmosphere on the island is tense, with locals saying the soldiers appear more nervous than usual. And while some find the mock evacuation comforting, the presence of a large garrison here is polarising, with families divided over whether they offer protection or risk making the island a target. Near Yonaguni's main fishing port Hisako Otomo, the owner of the westernmost shop in Japan, admits the islanders cannot help but feel concerned about the situation with China. 'It's worrying when we see the news,' she says. 'It's scary to have to think about this [an invasion of Taiwan] – to think is it really going to happen?' China has conducted drills simulating a full blockade of Taiwan – likely the first step in an invasion – on multiple occasions in the past year, including staging its largest military exercises in three decades over the course of a week in December. Across the whole of last year it ordered a record 3,070 sorties by military aircraft across the Taiwan Strait's median line. Beijing claims self-governed Taiwan as a breakaway province and Xi Jinping has repeatedly vowed to 'reunite' the island with the mainland by force if necessary. The US assesses that China is gearing up to be ready for an invasion, if ordered, by the year 2027. Despite this standoff occurring on Japan's doorstep, SDF activity on Yonaguni is controversial – not just because of a perception that it could make the island a target, but also because of a broader debate in Japanese society about the role its military should play. Japan's commitment to its pacifist constitution, put in place at the end of its defeat in the Second World War as a promise that the country would never again be involved in armed conflict, is being tested by both China's aggression towards Taiwan and a North Korean regime that launches missiles over the Japanese mainland, and earlier this year claimed to have successfully test-fired a new hypersonic missile into the Sea of Japan. Further north and Japan also considers Russia to be a dangerous and unpredictable neighbour, exemplified by Vladimir Putin's decision to invade Ukraine in February 2022. The previous prime minister of Japan, Fumio Kishida, cited Ukraine as one of the main reasons for tripling Japan's defence budget to 43 trillion yen – around $400bn at the time it was announced – including huge investment in drone capability and the weapons needed to strike back at the likes of North Korea – or even launch a pre-emptive strike, if intelligence suggests an attack is imminent. Japan is reportedly preparing to deploy its first long-range missiles, capable of reaching North Korea and China, to two bases on Kyushu Island by the end of the current fiscal year in March 2026. At Japan's ministry of defence, officials explained to The Independent how the five-year plan initiated by Kishida, and supported by his successor Shigeru Ishiba, will take the country's defence-related spending to around 2 per cent of GDP by 2027 – a figure that would have been unthinkable, particularly at the time of a cost-of-living crisis, just a few years ago. Much of the plan is inspired by the war in Ukraine, including a huge ramping up of Japan's military drone programme – almost non-existent at present. Defence officials said the government was in the process of acquiring and testing different models before deciding where to invest the new funds. "The Russian aggression over Ukraine shows the deterioration of the global security environment,' says one official, speaking on condition of anonymity. Both Ishiba and Kishida before him have drawn direct comparisons between Taiwan and the situation in Europe, saying that 'today's Ukraine could be tomorrow's East Asia'. Japan views Putin's decision to invade Ukraine as a failure of effective deterrence, and while the defence ministry official admitted it was impossible 'to quantify deterrence', the argument is that a stronger Japan can help discourage China's Xi Jinping from following Moscow's example. 'Japan is enhancing its defence capabilities as a whole, including having the garrisons in the southwestern regions [nearest Taiwan],' they said. 'And this is to clearly show that Japan will not accept any unilateral attempts to change the status quo by force.' One key part of the spending plan involves upgrading the Japanese military's ageing equipment infrastructure to the latest models, such as replacing outdated F15 fighter jets with F35s from the US. And Japan wants to go one step further in the future, with an active role in developing cutting-edge military technology. It has signed an agreement with Britain and Italy to jointly design and build the next generation of stealth fighter, a programme known as GCAP. Yet even with all this new spending, Japan will still be heavily reliant on the US for its defence, a relationship that is being strained by the transactional approach Donald Trump takes to international relations. Prime minister Ishiba was one of the first world leaders to meet with Donald Trump at the start of his second administration, travelling to the White House on 7 February, and the US president him as doing a 'fantastic job' leading a 'strong and proud nation'. Trump's defence secretary Pete Hegseth visited Japan at the end of last month and called the country an 'indispensable partner in deterring communist Chinese military aggression", including across the Taiwan Strait. Yet Trump has also been highly critical of the US-Japan security partnership, which allows American troops to be stationed on Japanese soil in exchange for a commitment to protect Japan in the event of an attack. 'We pay hundreds of billions of dollars to defend them,' Trump complained in comments to reporters at the White House earlier this month. "They don't pay anything,' he added. Asked if a Trump White House was entitled to ask even more of Japan, an official at the Japanese foreign ministry said the situation had already 'drastically changed' after decades of post-war history when Japan typically spent no more than 1 per cent of GDP on its defence forces. The official suggested Japanese diplomats would explain that historical context to the Trump administration. 'The US is always giving us pressure to develop our defence capabilities, including the budget. 'Because of the change of Japan's policy, the drastic change, I believe that perception from the US should also change,' they said, on condition of anonymity. 'There is a genuine sense that Japan has done quite a lot,' says Matake Kamiya, professor of international relations at the National Defense Academy of Japan. 'I mean, 2 per cent of defence-related spending – that was totally unthinkable before the Ukraine war started. Possessing offensive capability under the name of counter-attack capability, that was politically too sensitive.' Nonetheless there remain red lines that Japan would never cross, even if China were to launch an all-out invasion of Taiwan within plain sight of the islanders on Yonaguni. In such a scenario there's still no realistic prospect of Japan deploying its newly expanded forces to help protect the island. At most, Japan would provide logistical support to allies – letting the US use its bases closest to the action, for instance. Despite the shifting attitudes towards pacifism among the Japanese public, any active combat role for its defence forces, even in an international peacekeeping operation, is unthinkable, says professor Kamiya. If Trump is to truly understand the limitations of Japan as an ally, he will need to get to grips with this aspect that is so fundamental to the country's psyche, borne out of the trauma of the Second World war. Terumi Tanaka, co-chair of the Nihon Hidankyo organisation representing Hiroshima and Nagasaki survivors that won last year's Nobel Peace Prize, calls the expansion of Japan's defence forces 'abominable'. 'Japan has a constitution with Article Nine, and this is based on the reality that we were attacked with this awful nuclear bomb, and so out of reflection on that, Japan abandoned any kind of military power,' he tells The Independent. He said those like him who had experienced the horrors of war owed it to younger generations to stand up for the principles of pacifism, and prevent it being abandoned. 'We're trying to prevent that, that's what I'm doing every day.' Back on Yonaguni, the way contingency plans for a Taiwan invasion are being solidified gives residents the impression that a crisis has never been closer, says local tour guide Saori Matsuda. 'I know that the SDF people are really concerned about the situation,' she says. 'I see that the tension is very high.' Matsuda, a fourth generation resident of the island, says she supports the drills and the expansion of Japan's military forces, given 'the global situation'. Many residents of Yonaguni have long felt an affinity for Taiwan and there were talks of establishing a ferry link between the two in 2023, before China ramped up its pressure on Taipei. 'The people of Taiwan say they are not part of China. My heart says I support them,' says Matsuda. 'I don't understand why China says what it is saying. I do feel nervous about it. We don't know what China is going to do – it looks like China could do anything.'
