Latest news with #economicrevitalization
CBS News
16-07-2025
- Business
- CBS News
Chinatown Stitch project in Philadelphia uncertain after Trump administration appears to strip federal funding
A transformational effort to reconnect Philadelphia's Chinatown may be in jeopardy after a Republican-backed federal bill, signed into law by President Trump, appears to have stripped nearly all of the project's promised funding. The Chinatown Stitch project, first announced in 2023, aimed to cap the Vine Street Expressway (I-676) between 10th and 13th streets, creating new public green space, safer streets, and better access to jobs, schools, and services in one of the city's most historic neighborhoods. The Biden administration had pledged nearly $160 million toward the project. But now, only $8.3 million in planning funds have been officially released; enough to keep design efforts underway, but not nearly enough to break ground. "It's really disappointing that the funding is not there right now," John Chin, the executive director of the Philadelphia Chinatown Development Coalition, said. Advocates like Chin said the project has far-reaching potential, not just for urban planning, but for equity and economic revitalization in Chinatown. "It can create jobs, better neighborhood conditions, and improve the quality of housing," Chin said. "That's what we really want from this project." Despite the funding setback, City Councilmember Mark Squilla, who represents Chinatown, remains hopeful. "Let's move forward," Squilla said. "We have the money for the design. Let's make sure we get the best possible project … We are not going to let this project die." So far, neither PennDOT nor the City's Office of Transportation and Infrastructure Systems (OTIS) has received official guidance from federal authorities about the impact of the new legislation. In a statement to CBS News Philadelphia, the city said: "The City has been encouraged by the level of support for the Chinatown Stitch Project from other intergovernmental stakeholders at the federal and state level, and as always, we will energetically be looking for additional funding sources in the future." The design and engineering phase is expected to continue over the next 18 months. Chin said in the meantime, they'll pursue alternative sources of funding. "Our hope is that we will finish up the design and construction drawing process in the next 18 months," Chin said. "In the meantime, we will apply for other money that still exists." The Chinatown Stitch has long been viewed as an opportunity to heal the scars left by the construction of the Vine Street Expressway, a project that physically divided Chinatown decades ago. For now, the future of the stitch remains uncertain, but the fight to reconnect the community continues.
The Guardian
04-07-2025
- Business
- The Guardian
Japan walks line between recession and submission as it seeks to overcome Trump tariffs
It all seemed to be going so well. In April, Japan's chief trade negotiator, Ryosei Akazawa, sat opposite Donald Trump in the Oval Office after 'positive and constructive' talks, sporting a Maga baseball cap and giving a thumbs up for the cameras. Japan's economic revitalisation minister drew criticism back home for the gesture, forcing him to insist there was 'no political significance' behind it. But the backdrop to the offending photo was far more significant than the uncomfortable optics. Akazawa's trade delegation was in Washington to begin tariff negotiations with its American counterparts that officials in Tokyo were initially optimistic would end with Japan's exemption from Trump's most egregious protectionist instincts. 'A Great Honor to have just met with the Japanese Delegation on Trade,' Trump wrote on Truth Social after meeting Akazawa. 'Big Progress!' Eleven weeks and seven rounds of talks later, Japan and the US have reached an impasse, with Trump unleashing on his country's most important ally in the Asia-Pacific the kind of invective he once reserved for China and the European Union: 'They won't take our RICE, and yet they have a massive rice shortage,' he wrote online, adding it showed 'how spoiled countries have become'. The friction is beginning to seep into other parts of the bilateral relationship, with Tokyo and Washington at odds, to varying degrees, on the cost of hosting American troops in Japan and recent attacks by the US and Israel on Iran. To add insult to injury, the chasm that has opened up between Tokyo and Washington on trade came as the US agreed to slash reciprocal tariffs on Vietnamese imports from 46% to 20%. Japan now has just days before the end of Trump's 90-day pause on the imposition of punishing tariffs to pull off a breakthrough. Much will depend on Akazawa's ability to convince American negotiators to withdraw or reduce a 25% levy on Japanese cars imposed in April. That is on top of a possible rise in reciprocal duties on other Japanese goods to 24% from the current baseline of 10%. But if anything, the mood music from Washington indicates that Trump is even less inclined to make concessions ahead of the president's second tariff 'liberation day', despite constant reminders from senior politicians in Tokyo of the value Japan brings to the US economy. They include the prime minister, Shigeru Ishiba, who noted this week that Japan is the largest foreign investor in the US and its biggest contributor in terms of job creation. 'Our hope is that this will be taken into consideration,' he said. Just days earlier, Trump had framed Japan in terms that prompted as much consternation as anger on this side of the Pacific. Speaking to reporters on Air Force One, he floated the idea of raising tariffs on imports from Japan to 30% or 35%, and bemoaned its consumers' lack of enthusiasm for American cars and rice. 'I'm not sure we're going to make a deal. I doubt it,' Trump said, labelling Japan 'very tough' and 'very spoiled'. Japan has much to lose if it fails to secure an extension to the deadline on reciprocal tariffs or convince the US to lower duties. The US is Japan's second-biggest trading partner after China, with exports to the US totalling $148.2bn last year. Trade between the two countries was worth an estimated $227.9bn last year, while the autos sector is already suffering from existing tariffs, with exports to the US dropping 25% in May compared to a year ago. That will not put the brakes on Trump's mission to hack away at Japan's $68bn trade surplus with the US – hence his recent demands that it increase imports of US oil and other goods. The trade row has landed Ishiba and his government in a predicament every bit as sticky as the early-summer heat and humidity blanketing Japan. Battered by funding scandals, soaring rice prices and a cost-of-living crisis, Ishiba's administration is limping into the campaign for upper house elections on 20 July, nine months after his Liberal Democratic party (LDP) and its junior coalition partner lost their majority in the lower house. Any inkling that Tokyo is prepared to bend to Trump's demands will not go down well with voters, while analysts warn that the economic impact of accepting higher tariffs could push the Japanese economy – the world's fifth biggest – into recession. Japan's rice crisis has also become a point of contention, as the government attempts to bring down prices with the release of almost all of its 1m tonnes of stockpiled grain, along with a rise in cheaper imports. Japan has imported historically high volumes of US rice in recent months, and yet despite Trump's threats, is reluctant to agree to anything that would ignite anger among rice farmers – a politically influential group in the LDP. Washington is also pressuring Japan to boost imports of other US farm products, as well as cars and oil, to help reduce the trade deficit. Japan has declined to comment on Trump's threat to impose even higher tariffs, saying it would pursue 'sincere' bilateral talks. 'We are aware of what President Trump said, but we don't comment on every remark made by US government officials,' the deputy chief cabinet secretary, Kazuhiko Aoki, said this week 'We intend to advance bilateral talks in a sincere and faithful manner toward reaching an agreement that will benefit both Japan and the United States.' Tariffs, though, are putting strain on what the former US ambassador to Tokyo, Mike Mansfield, once described as the 'most important bilateral relationship in the world, bar none'. After failing to make progress with Trump during a meeting at the G7 in Canada last month, Ishiba abruptly cancelled plans to attend the Nato summit in The Hague – a move analysts attributed to ongoing friction over trade. Japan also declined to offer full-throated support for the US attacks on Iran, saying only that it 'understood' Washington's determination to halt Tehran's nuclear weapons programme. This week, the US secretary of state, Marco Rubio, called off his first visit to Japan and South Korea, saying he was needed in Washington for talks with the Israeli prime minister, Benjamin Netanyahu. Amid rumours that he is preparing to make yet another trip to Washington this weekend, Akazawa has limited room for manoeuvre – and precious little time, according to analysts. 'Practical and electoral constraints will prevent Japan from offering major concessions on autos, rice, and oil, with negotiators set to continue their slow-and-steady approach,' said James Brady, vice-president of the political risk advisory firm Teneo. 'The probability of a deal being reached before next week's [tariff] deadline appears increasingly low.'
The Guardian
04-07-2025
- Business
- The Guardian
Japan walks line between recession and submission as it seeks to overcome Trump tariffs
It all seemed to be going so well. In April, Japan's chief trade negotiator, Ryosei Akazawa, sat opposite Donald Trump in the Oval Office after 'positive and constructive' talks, sporting a Maga baseball cap and giving a thumbs up for the cameras. Japan's economic revitalisation minister drew criticism back home for the gesture, forcing him to insist there was 'no political significance' behind it. But the backdrop to the offending photo was far more significant than the uncomfortable optics. Akazawa's trade delegation was in Washington to begin tariff negotiations with its American counterparts that officials in Tokyo were initially optimistic would end with Japan's exemption from Trump's most egregious protectionist instincts. 'A Great Honor to have just met with the Japanese Delegation on Trade,' Trump wrote on Truth Social after meeting Akazawa. 'Big Progress!' Eleven weeks and seven rounds of talks later, Japan and the US have reached an impasse, with Trump unleashing on his country's most important ally in the Asia-Pacific the kind of invective he once reserved for China and the European Union: 'They won't take our RICE, and yet they have a massive rice shortage,' he wrote online, adding it showed 'how spoiled countries have become'. The friction is beginning to seep into other parts of the bilateral relationship, with Tokyo and Washington at odds, to varying degrees, on the cost of hosting American troops in Japan and recent attacks by the US and Israel on Iran. To add insult to injury, the chasm that has opened up between Tokyo and Washington on trade came as the US agreed to slash reciprocal tariffs on Vietnamese imports from 46% to 20%. Japan now has just days before the end of Trump's 90-day pause on the imposition of punishing tariffs to pull off a breakthrough. Much will depend on Akazawa's ability to convince American negotiators to withdraw or reduce a 25% levy on Japanese cars imposed in April. That is on top of a possible rise in reciprocal duties on other Japanese goods to 24% from the current baseline of 10%. But if anything, the mood music from Washington indicates that Trump is even less inclined to make concessions ahead of the president's second tariff 'liberation day', despite constant reminders from senior politicians in Tokyo of the value Japan brings to the US economy. They include the prime minister, Shigeru Ishiba, who noted this week that Japan is the largest foreign investor in the US and its biggest contributor in terms of job creation. 'Our hope is that this will be taken into consideration,' he said. Just days earlier, Trump had framed Japan in terms that prompted as much consternation as anger on this side of the Pacific. Speaking to reporters on Air Force One, he floated the idea of raising tariffs on imports from Japan to 30% or 35%, and bemoaned its consumers' lack of enthusiasm for American cars and rice. 'I'm not sure we're going to make a deal. I doubt it,' Trump said, labelling Japan 'very tough' and 'very spoiled'. Japan has much to lose if it fails to secure an extension to the deadline on reciprocal tariffs or convince the US to lower duties. The US is Japan's second-biggest trading partner after China, with exports to the US totalling $148.2bn last year. Trade between the two countries was worth an estimated $227.9bn last year, while the autos sector is already suffering from existing tariffs, with exports to the US dropping 25% in May compared to a year ago. That will not put the brakes on Trump's mission to hack away at Japan's $68bn trade surplus with the US – hence his recent demands that it increase imports of US oil and other goods. The trade row has landed Ishiba and his government in a predicament every bit as sticky as the early-summer heat and humidity blanketing Japan. Battered by funding scandals, soaring rice prices and a cost-of-living crisis, Ishiba's administration is limping into the campaign for upper house elections on 20 July, nine months after his Liberal Democratic party (LDP) and its junior coalition partner lost their majority in the lower house. Any inkling that Tokyo is prepared to bend to Trump's demands will not go down well with voters, while analysts warn that the economic impact of accepting higher tariffs could push the Japanese economy – the world's fifth biggest – into recession. Japan's rice crisis has also become a point of contention, as the government attempts to bring down prices with the release of almost all of its 1m tonnes of stockpiled grain, along with a rise in cheaper imports. Japan has imported historically high volumes of US rice in recent months, and yet despite Trump's threats, is reluctant to agree to anything that would ignite anger among rice farmers – a politically influential group in the LDP. Washington is also pressuring Japan to boost imports of other US farm products, as well as cars and oil, to help reduce the trade deficit. Japan has declined to comment on Trump's threat to impose even higher tariffs, saying it would pursue 'sincere' bilateral talks. 'We are aware of what President Trump said, but we don't comment on every remark made by US government officials,' the deputy chief cabinet secretary, Kazuhiko Aoki, said this week 'We intend to advance bilateral talks in a sincere and faithful manner toward reaching an agreement that will benefit both Japan and the United States.' Tariffs, though, are putting strain on what the former US ambassador to Tokyo, Mike Mansfield, once described as the 'most important bilateral relationship in the world, bar none'. After failing to make progress with Trump during a meeting at the G7 in Canada last month, Ishiba abruptly cancelled plans to attend the Nato summit in The Hague – a move analysts attributed to ongoing friction over trade. Japan also declined to offer full-throated support for the US attacks on Iran, saying only that it 'understood' Washington's determination to halt Tehran's nuclear weapons programme. This week, the US secretary of state, Marco Rubio, called off his first visit to Japan and South Korea, saying he was needed in Washington for talks with the Israeli prime minister, Benjamin Netanyahu. Amid rumours that he is preparing to make yet another trip to Washington this weekend, Akazawa has limited room for manoeuvre – and precious little time, according to analysts. 'Practical and electoral constraints will prevent Japan from offering major concessions on autos, rice, and oil, with negotiators set to continue their slow-and-steady approach,' said James Brady, vice-president of the political risk advisory firm Teneo. 'The probability of a deal being reached before next week's [tariff] deadline appears increasingly low.'
Times of Oman
22-06-2025
- Business
- Times of Oman
South Korea unveils $22 billion stimulus budget to revive Korean economy
Seoul: Lee Jae Myung, President of South Korea, has introduced a 30.5 trillion won ($22.1 billion) supplementary budget proposal aimed at revitalising Korea's flagging economy, reported the Korea Herald, a South Korean English-language daily newspaper, on June 19. The proposal includes a 10.3 trillion won downward revision of projected revenue, the first such adjustment in five years, the South Korean daily reported. "Fiscal soundness and adherence to balanced budgeting are important, but the current downturn is too severe for the government to stand by. It is time to put public finances to use," Lee said at a Cabinet meeting on Thursday, the news platform added. According to the news platform, the president emphasised two guiding priorities in the proposal. "First, stimulating the economy. And second, ensuring the benefits are fairly distributed -- whether universally or partially -- according to who needs them most. These are also questions of values and ideology," he said, quoted by the platform. The plan, which features universal cash payments to all citizens, received Cabinet approval on Thursday and is expected to be submitted to the National Assembly by Monday. According to the Finance Ministry, reported by the Korean Herald, the supplementary budget includes approximately 20.2 trillion won in new expenditure. Of that amount, 15.2 trillion won is directed at spurring economic activity, while 5 trillion won is designated for supporting livelihoods. At the centre of the stimulus package is a 10.3 trillion won cash distribution program issued in the form of "spending coupons." Payments will range from 150,000 won to 500,000 won, scaled by income level. In the first phase, all Koreans will receive a minimum of 150,000 won, while lower-income groups receive more. The second phase will exclude the top 10 per cent of earners, with the remaining 90 per cent receiving an additional 100,000 won. Additionally, 2.7 trillion won has been allocated to support the construction sector, which has experienced four straight quarters of contraction and remains a major drag on domestic demand. About 1.2 trillion will go to support startups and next-generation industries such as artificial intelligence and renewable energy to promote long-term economic development. The 5 trillion won in livelihood support is focused on aiding small business owners and self-employed workers, many of whom are facing record-high loan defaults and business closures. Within this portion, 1.4 trillion won will help alleviate debt for persistently distressed borrowers, while 1.6 trillion won will go toward strengthening the employment safety net, including job-seeking benefits and support for delayed wages. The government has also revised down its revenue forecast by 10.3 trillion won, marking the first such correction since July 2020 at the height of the COVID-19 pandemic, the news platform added. As of the end of April, the integrated fiscal balance -- a key measure of Korea's fiscal health -- recorded a deficit of 46.1 trillion won, the third-largest April shortfall on record, trailing only 2024 and 2020. This gap is set to widen further when factoring in over 30 trillion won in additional spending this year. Revenue for the full year is now projected at 642.4 trillion won, down from 651.6 trillion won, while total government spending has been revised upward from 673.3 trillion won to 702 trillion won. Accordingly, the government anticipates the year-end integrated fiscal deficit will grow to 110.4 trillion won, up from 91.6 trillion won in the previous year. This would raise the deficit-to-GDP ratio to 4.2 per cent, compared to the earlier estimate of 3.3 per cent, the news platform said. The national debt, which stood at about 1,200 trillion won at the end of April, is projected to exceed 1,300 trillion won by year's end, lifting the debt-to-GDP ratio to 49 per cent. According to the South Korean daily, the government also plans to issue 19.8 trillion won in treasury bonds aimed at bridging the fiscal gap, while covering the remainder through approximately 10 trillion won in budget restructuring and the use of available reserves. Despite the expanding deficit, the Finance Ministry emphasised that Korea's fiscal condition remains sustainable by international standards, the English daily added. The government expects the additional budget to lift economic growth by 0.1 to 0.2 percentage points, pushing Korea's growth rate into the 1 percent range. The Bank of Korea currently forecasts 0.8 percent growth for the year, while the International Monetary Fund projects a 1 percent expansion.
Times of Oman
19-06-2025
- Business
- Times of Oman
South Korea approves $14.7 billion second extra budget to boost economy
Seoul: South Korea will implement a second supplementary budget worth 20.2 trillion won ($14.7 billion) aimed at revitalising domestic consumption and bolstering the economy, including the distribution of cash handouts to all citizens. According to South Korea's (Yonhap) News Agency, the Ministry of Economy and Finance said in a statement on Thursday that "the supplementary budget -- the second this year and the first since President Lee Jae Myung took office two weeks ago -- was approved at a Cabinet meeting. It follows a 13.8 trillion-won extra budget passed in May and is subject to parliamentary approval." "The government will support economic revitalization by promoting consumption, encouraging investment and expanding construction spending," the ministry said in a statement. The government will inject 10.3 trillion won to provide "consumption coupons" ranging from 150,000 to 500,000 won per person, depending on income levels, the ministry said. During the January–April period, South Korea's managed fiscal balance, a stricter measure of fiscal health, recorded a deficit of 46.1 trillion won, according to government data. In 2024, the fiscal deficit exceeded 100 trillion won.
