One of the Bank of Japan's deputy chiefs on Wednesday reiterated the bank's readiness to pursue a path toward monetary normalization if the Japanese economy and inflation move in line with expectations, while noting uncertainties regarding U.S. tariffs.
 
"Given that real interest rates are at significantly low levels...the bank, in accordance with improvement in economic activity and prices, will continue to raise the policy interest rate," BOJ Deputy Governor Shinichi Uchida said in a speech in Kochi, western Japan.
 
Saying it is not yet clear how economic activity and prices at home and abroad will develop, Uchida said he will pay close attention to the economic data "as there are extremely high uncertainties and as domestic and overseas economies seem to be at a critical juncture."
 
Uchida's remarks came hours after U.S. President Donald Trump said that he has struck a "massive" trade deal with Japan, under which Tokyo has agreed to a "reciprocal tariff" of 15 percent, lower than earlier proposed.
 
In his speech, Uchida did not directly address the newly announced deal.
 
Expressing concern about the potential downward pressure on prices in Japan from U.S. trade policy, Uchida also noted upward pressure from cost-push factors, particularly in food prices.
 
"My attention will therefore be on how such upward and downward pressure may affect the outlook for prices through, for example, firms' wage- and price-setting behavior."
 
The BOJ has shifted from a decade of unorthodox easing, lifting its key rate three times since March last year.
 
But the central bank kept its benchmark rate unchanged at 0.5 percent at its June policy meeting, the third straight gathering without a policy adjustment, with Trump's tariffs clouding the outlook for Japan's export-oriented economy.
 
The BOJ will hold a two-day policy meeting from July 30, during which it is set to issue its updated quarterly outlook for growth and inflation.
 

Small and medium-sized firms like Mitsuwa Electric that form the backbone of Japan's economy have weathered many storms over the decades, and company president Yuji Miyazaki is hopeful they will also withstand Donald Trump.

As part of a campaign against friend and foe, the U.S. president has threatened 25 percent tariffs on imports of Japanese goods from August 1, having already imposed tough levies on its vehicles, steel and aluminium.
However, Miyazaki told AFP that he was confident.

"We are providing very specialised products for specialised industries, where it is difficult to change suppliers or supplying countries just because of boosted tariffs," he said on a tour of the 92-year-old firm.

"I'm not worried too much, because if American companies can't produce parts on their own, they have no choice but to import those parts regardless of tariffs," the descendant of the firm's founder said.

With 100 employees, Mitsuwa Electric is not a household name.
But like millions of other SMEs that account for 99.7 percent of Japan's companies, it is world-class in its specialist niche.

It began making light bulb filaments and now produces coils, rods, needles, plates, pipes and wires for a range of goods including car lights, photocopiers and X-ray machines.

In 2022 it won a Guinness World Record for the smallest commercially available metal coil, with a diameter around half that of a human hair.

Mitsuwa's customers are across Asia, Europe and North America and include Japanese engineering giant Toshiba and Toyota-affiliated parts maker Koito Manufacturing.

Miyazaki said the impact of U.S. tariffs on the company's business is limited so far, with one auto sector customer asking it to lower prices.
"All we can do is to adapt to any changes in the business environment," Miyazaki said.

 

Diversify to survive

Prime Minister Shigeru Ishiba has sent his tariffs envoy Ryosei Akazawa to Washington seven times since April to try to win relief from the tariffs.
U.S. Treasury Secretary Scott Bessent was due to meet Ishiba and Akazawa on Friday in Tokyo.

But the prime minister's apparently maximalist strategy of insisting all tariffs are cut to zero have been criticized in some parts, especially as August 1 approaches.

U.S.-bound exports of Japanese vehicles -- a sector tied to eight percent of Japanese jobs -- tumbled around 25 percent in May and June.

The lack of a deal isn't helping Ishiba's popularity ahead of upper house elections on Sunday that may end Ishiba's premiership after less than a year.
What bothers Japanese firms is Trump's unpredictability and the complexity of the tariffs, according to government-backed SME support organization JETRO.

Since February, the group has received more than 2,000 enquiries from members about U.S. tariffs, with a flood of requests since June asking for "the latest information" as the deadline approaches.

Mitsuwa Electric boss Miyazaki admits worrying about Trump's threat of pharmaceuticals tariffs of 200 percent, or if medical equipment is targeted.
Together with its broad product range, the diversification of its customer base has shielded it so far, he said.

This is also vital for other firms to survive, said Zenkai Inoue, an SME expert and professor at the Kyushu Institute of Information Sciences.
"I'm proposing a 'tricycle strategy', which means you have to have (at least) three customers in different regions," he told AFP.

"For SMEs, securing financial stability by asking banks for their funding is important to survive for the time being, then the next step would be expanding their sales channels to other markets," he said.

Inoue added that some Japanese firms had been slow to prepare for Trump's tariffs, even after he said he would during his 2024 election campaign.

"There was a time when Japanese companies, having heavily relied on the Chinese market, (were) hurt badly by a sudden change in China's policy. But some of them have not learnt a lesson enough from that experience," he said.
 
 

 

Kansai Electric Power Co. said Tuesday it will conduct topographical and geological surveys in the town of Mihama in Fukui Prefecture, central Japan, as part of its plan to build a new nuclear reactor at its Mihama power plant.

If the results support the construction, the company is expected to apply for approval from the Nuclear Regulation Authority to move forward with the project.

This is the first concrete move toward building a new reactor in Japan since the March 2011 massive earthquake and tsunami mainly in the Tohoku northeastern region, which led to one of the world’s worst nuclear accidents at Tokyo Electric Power Company Holdings Inc.’s Fukushima No. 1 power plant.

“We will explain the outline of the surveys to the people of Mihama and begin the surveys swiftly,” Kansai Electric President Nozomu Mori told a press conference in the western city of Osaka. “We will not make a decision (on the construction) based solely on the results (of the surveys).”

Kansai Electric aims to install a next-generation nuclear reactor, such as an innovative light-water reactor, at the site. In making its decision, however, the company believes it must comprehensively assess the development status of new reactor models and the business environment in terms of making investments, among other factors.

At the Mihama plant, the No. 1 and No. 2 reactors are set to be decommissioned, while the No. 3 unit, which is currently in operation, will mark its 50th year of operation next year.

In 2010, Kansai Electric announced plans to set up a new reactor in or near the Mihama plant site, but the project was shelved following the 2011 disaster.

Japan promotes the maximum utilization of nuclear power plants under its basic energy plan, approved at a cabinet meeting in February. As part of the plan, the government aims to develop and build next-generation reactors that are considered safer than conventional types.

Subsequently, Kansai Electric, in its fiscal 2025 business scheme announced in April, said it will work on improving its business environment with a view to replacing its nuclear reactors.
 
 

A lot of first guitars in Japan were made by Fernandes, a Saitama-based company that started in 1969 and grew to receive worldwide recognition. 

Their guitars were especially popular in the ’90s, having been used by members of Metallica and Green Day, while in Japan, they were often held by guitarists in the visual kei genre of rock, including those from bands like X Japan and Buck-Tick.

By 1999, their sales were flying high at about four billion yen, but have been on a steady decline since and fell to 166 million yen ($1 million) in 2022, landing them about 24 million in the red.

Despite some efforts to pull out of the slump, Fernandes finally had to file for bankruptcy in June of this year.

It’s fair to say that times are tough for a lot of businesses these days, but the spectacular fall of Fernandes left many wondering what happened to cause it in online comments.

“There are just too many secondhand guitars on the market now. Plus, people don’t even need instruments to make music anymore.”

“My first guitar was a Fernandes.”

“Sad… It’s the end of an era.”

“Does anyone even buy instruments anymore?”

“Once visual kei went down in popularity, times got hard for them.”

“I bought a Fernandes bass and guitar because I loved Hide.”

“They’re still great guitars. It’s just the times have changed.”

“The policies of the LDP are making all kinds of great companies crash. They need to go.”

“Most people don’t buy instruments anymore, and those that do can only afford one.”

“Notice how everyone is saying ‘My first guitar was a Fernandes,’ but not their second, third, or fourth…”

“People don’t have the endurance to learn an instrument with all the instant gratification content out there.”

“The music industry is going down all over the world. It’s all EDM now.”

What happened to Fernandes was most likely the result of how the company was run or, as one comment pointed out, the general economic conditions of Japan as a whole.

 It was also reported that the brand name was sold to another company, but it remains to be seen if that means future generations around the world will continue to pick up a Fernandes as their first guitar.
 
 

When car maker Mazda sneezes, everyone catches a cold, say people in its hometown of Hiroshima in western Japan, but these days, auto parts maker Yuji Yamaguchi fears a deep chill is on the way.

"If Mazda builds fewer cars, our orders will drop," said Yamaguchi, whose 110-year-old firm, Nanjo Auto Interior, has almost 1,000 employees making door panels and other parts for the automaker, which accounts for more than 90% of its sales.

"The key thing is whether we can remain profitable with lower volumes."
The economic engine of Hiroshima, a manufacturing hub 800 km (500 miles) southwest of Tokyo, Mazda faces U.S. tariffs of 25% on automobiles, a dispiriting prospect for an electorate already battling inflation and a weak economy.

Japan votes on Sunday in an upper house election that looks set to weaken the grip on power of Prime Minister Shigeru Ishiba, who has failed to win a tariff reprieve from the United States, its closest ally and a crucial trade partner.

"I have no expectations for the Japanese government anymore," said Yamaguchi, a great-grandson of Mazda founder Jujiro Matsuda. "I'm past frustration and have just resigned myself to things."

As people in Hiroshima and other auto manufacturing regions, brace for the inevitable fall-out from tariffs, Yamaguchi said he had little hope the government could turn the tide.

President Donald Trump has given no sign of relenting on his tariffs, and has even hinted at raising those against Japan.

Mazda, which saw U.S. sales fall 18.6% in May on the year and by 6.5% in June, is one of the Japanese car makers most exposed to U.S. tariffs.

Imports bring in the bulk of Mazda's American sales, but the importance of the wider industry for Japan is almost impossible to overstate.

After Japan ceded global leadership in chips and consumer electronics, its auto industry has grown to make up about 28% of the roughly $145 billion worth of goods shipped to the United States last year.

There are more than 68,000 companies in Japan's auto supply chain, a July survey by research firm Teikoku Data Bank showed, and the JAMA industry group says they employ 5.6 million people, or about 8% of the labour force.

"A supply chain is hard to rebuild once broken," said Hideki Tsuchikawa, research head at Teikoku Databank’s branch in Hiroshima, which his firm estimates is home to more than 2,000 auto suppliers.

"Automobiles are a core national industry. Government support is essential."
The tariffs could cost Mazda and other smaller Japanese automakers U.S. market share lost to bigger rivals, said Julie Boote, an autos analyst at Pelham Smithers Associates in London. 

Mazda, headquartered in Hiroshima, where it has assembly plants, has so far declined to give a full-year earnings outlook, citing the uncertainty of tariffs.
In a statement, Mazda told Reuters its top priority was to protect suppliers, dealers and employees as it looked to overcome the tariff impact.

It anticipated significant impact in the short term, the company said, adding it was taking all possible steps, such as asking for government countermeasures.

 

'NO OVERTIME, NO DRINKING'

It is hard to say whether the uncertainty will further deepen voter anger over time, or how much opposition parties will be able to chip away at Ishiba's support as they look to tap into voter discontent.

For the auto industry there seems to be no recourse except to return to a well-worn playbook of cost-cutting perfected during Japan's years of stop-start economic growth.

No overtime means no extra money for drinking, said Koji Sasaki, the 54-year-old owner of a bar in the town of Fuchu close to Mazda's headquarters, where the automaker's employees usually form the bulk of customers.  
Their numbers have dropped in recent months, with some regulars apologizing for making fewer visits, he said.

Drinking in Sasaki's bar on a recent July evening was company veteran Toshiyuki Shimizu, 45, who said Mazda had already cut back on overtime and business travel for employees.

"We used to bring junior staff along on business trips, but now I often go alone," said Akira Ichigi, a 32-year-old Mazda colleague, adding that the limits denied junior employees valuable experience acquired on such trips.

Mazda has set up a tariff strategy team that was meeting each week in Hiroshima, said one company insider, speaking on condition of anonymity.
But Mazda faced constraints in finding ways to tackle the tariffs from a labour shortage in the United States, that kept it from boosting capacity at its sole plant there, operated with Toyota, the source added.

Mazda said overtime cuts and a business travel review were part of its drive to cut 100 billion yen in costs. Essential travel continued, but it was evaluating whether accompanying staff were necessary, it said.

The company set up a team to monitor tariffs and was working with suppliers and dealers, it said, adding that key to increasing supply to the U.S. market were its efforts to tackle labour shortages and strengthen the supply chain.

For now, parts supplier Yamaguchi said he was not considering specific steps to counter the tariffs.

"In business, we need to have long-term vision," Yamaguchi said, likening the moment to the COVID-19 pandemic, when his company posted a loss in 2020 but returned to profit the next year by working to boost efficiency rather than cutting costs. "If we don’t invest in 2025, we might miss opportunities."
 
 

 

Panasonic Holdings Corp. has decided to postpone the start of full operations of its newly built U.S. electric vehicle battery plant, as Panasonic’s major client Tesla has reported sluggish sales, prompting Panasonic to review its production plans.

Operations at the plant, located in Kansas, were originally scheduled to start at the end of fiscal 2026.

The global EV market is experiencing a slowdown in growth, leading to widespread revisions of production and investment plans.

Construction of the Kansas plant, which was built with an investment of about $4 billion (about ¥590 billion), began in autumn 2022 as Panasonic’s second U.S. production site, after its Nevada facility.

Panasonic initially planned to reach full production of the plant, which has an annual production capacity of about 30 gigawatt-hours, by the end of fiscal 2026, but this has been changed to “undecided.”

Tesla’s global sales for the April-June period were 384,000 vehicles, down 13% from the same period last year, marking the second consecutive quarter of a two-digit decline. This is said to be due to the political remarks and actions of Tesla CEO Elon Musk, whose relationship with U.S. President Donald Trump has soured.

The outlook for the overall EV market in the United States is uncertain. The Trump administration plans to abolish tax incentives for EVs at the end of September. The administration also plans to impose an additional 50% tariff on copper which is used in products such as EV motors, and the additional tariff could affect future market trends.

In response to this situation, Japanese automakers are also reviewing their production plans in North America.

Toyota Motor Corp. had planned to begin U.S. production of two new EV models by 2026 but has postponed the start of production for one of the models to 2028. Nissan Motor Co. has also delayed the start of production of new EVs in the United States.

Honda Motor Co. has postponed the start of operations at its new EV plant in Canada, originally set for 2028, to 2030 or later. The company had planned to invest ¥10 trillion by fiscal 2030 in global EV-related projects, including software development, but this was reduced this to ¥7 trillion.

In Japan, EV sales are stagnating due to high prices and a lack of charging facilities, leading automakers to review their EV strategies.

Nissan announced in May that it will abandon plans to build an EV battery plant in Kitakyushu. Toyota is working to reschedule the start of the operation of its battery plant yet to be constructed in Fukuoka Prefecture. The start was originally planned for 2028, but this will likely be delayed.

Panasonic is collaborating with Subaru Corp. and Mazda Motor Corp. to establish new battery factories in Japan and expand production capacity. Depending on market conditions, the company may be forced to revise its domestic plans as well.

 

It’s been a tumultuous couple of years for the arcade industry in Japan. Not even the otaku mecca of the Akihabara neighborhood is completely buffered, as it’s been announced that one of the Tokyo neighborhood’s oldest “game centers,” as arcades are called in Japanese, will be closing and very soon.

Back in the early ‘90s, Sega was riding high, as a developer of not just video game software, but hardware too, producing home consoles, handheld systems, and arcade machines. 

In 1992, it opened High-tech Land Sega Shintoku on a corner of Chuo-dori, the main street of Akihabara. The entire multi-story building was one huge arcade, eventually changing its name to Club Sega Akihabara and then Sega Akihabara Building 1.

Sega’s fortunes later faded and the company made the decision to pare back its operations and focus on software production and publishing, stepping out of the home hardware arena in 2001 and finally selling off its arcade management business at the end of 2021.

That didn’t result in the shuttering of all of its arcades, however, as new owner Genda has continued operating many of them under its GiGO brand, including the former Sega Akihabara Building 1, now called GiGO Akihabara Building 1, which had the distinction of being Sega’s longest-operating whole-building sized arcade at the time of its sale.

But now the end is coming for GiGO Akihabara Building 1, and it’s coming very quickly. On Tuesday, Genda announced that the landmark arcade will be closing down permanently at the end of August.

In its press release, Genda says the reason for the arcade’s closure is that its lease is expiring. No details have been given over whether negotiating for a new lease was an option or not, but the company says that after GiGO vacates the building the company Matahari Entertainment will be coming in to set up an “amusement facility.”

Matahari is also involved in arcade management, but its chain, called Silk Hat, closed one of its most well-known arcades not too long ago. Taking that into consideration, Matahari might be moving in with its Baa@se brand of karaoke/darts bar/Internet cafe facilities instead, or perhaps is developing a new concept specifically for the Akihabara location.

Regardless of what comes next, though, GiGO Akihabara Building 1’s last day will be August 31.
 
 

Narita Airport is facing the busiest time of year for live eel imports as it gets closer to the Day of the Ox, a day in midsummer when grilled eel is traditionally eaten.

This year, the Day of the Ox takes place on July 19 and 31.
Of the 8,062 tons of eels imported into Japan last year, Narita Airport handled 6,490 tons, or about 80%, according to Tokyo Customs.

In July last year, 1,158 tons of eels were imported nationwide, and 890 tons passed through Narita Airport. Both figures were the highest for 2024.

An import company in Narita, Chiba Prefecture, purchased on Wednesday about 2 tons of Japanese eels farmed in China and Taiwan .

The president of the company said this year’s market price is about the same as last year. The president also said the price, so far, has not been affected by the European Union’s June proposal to regulate eel trade under the Washington Convention, which restricts the international trade of protected species.

“Even though it’s hot, I want people to stay healthy by eating eels,” the company president said.
 


 

Dragon Ball is a big franchise. Though it started as a manga, the anime adaptation of Akira Toriyama’s sprawling intergalactic martial arts epic started airing less than two years after the first chapter was published, and there have now been more than 20 "Dragon Ball" theatrical anime, dozens of video games, and one live-action Hollywood version that many fans of the source material are still trying to scrub from their memories.

One thing there hasn’t been, though, is an entire shop just for "Dragon Ball" merch. That’s going to be changing, though, as the franchise’s official website has announced that the first-ever Dragon Ball Store will be opening in Japan soon.

As one of the most continually popular anime franchises of the past four decades, "Dragon Ball" merch, in and of itself, isn’t all that hard to find in Japan.

Between the series’ long history, fanbase that stretches from little kids all the way up to adults, and the fact that new "Dragon Ball" anime and manga are still being made, though, there are far too many cool "Dragon Ball" items to fit into a sub-section of a general anime specialty shop, so the Dragon Ball Store should boast an especially wide selection.

The announcement also promises that the shop will have limited-edition merch that won’t be available anywhere else in the world.

▼ So far, the closest thing there’s been to a Dragon Ball store is the Jump Shop, where it shares space with the other titles from manga publisher Shueisha’s Weekly Shonen Jump anthology.

With Japan’s passionate fan communities, plus a large number of visiting foreign travelers being fans of the otaku arts, there are shops for some of the most prominent publishers and production houses, such as Nintendo and Studio Ghibli. Dedicated shops for individual series, though, are less common, and are often popup affairs.

The Dragon Ball Store’s announcement makes no mention of it being a limited-time event, however, so it looks like it’ll be joining the Pokemon Center as one of the few individual series with its own permanent store.

Currently, the only opening date/location information that’s been revealed is that the Dragon Ball Store will be open this coming fall and be located somewhere within Tokyo, though the city’s high-tourism neighborhoods of Shibuya, Akihabara, Shinjuku, and Ikebukuro seem the most likely.
 
 

Japan's trade surplus in June shrank 30.8 percent from a year earlier to 153.1 billion yen ($1 billion) as automobile and other exports to the United States plunged amid higher tariffs, government data showed Thursday, Kyodo reports.

Overall exports fell 0.5 percent to 9.16 trillion yen, weighed down by a 11.4 percent drop in U.S.-bound shipments to 1.71 trillion yen, marking the third straight month of decline since Washington imposed a 25 percent tariff on imported vehicles in April.

Imports edged up 0.2 percent to 9.01 trillion yen, lifted by pharmaceutical products from Ireland and mobile phones from China, the Finance Ministry said in a preliminary report. The trade balance returned to the black for the first time in three months.

Japan's trade surplus with the United States tumbled 22.9 percent to 669.3 billion yen, down for the second straight month. Imports from the country decreased 2.0 percent to 1.04 trillion yen.

While vehicle shipments to the world's largest economy plunged 26.7 percent in value terms, they rose 3.4 percent by volume.

"Japanese manufacturers continued to absorb the costs of the tariffs," rather than passing them on to customers, said Koki Akimoto, an economist at the Daiwa Institute of Research.

But the trend is likely to fade as several major Japanese carmakers have announced plans to raise their prices, Akimoto said.

"If that's the case, the price competitiveness of Japanese products will decline in the U.S. market, and the impact of the tariffs will gradually become more visible" in the broader Japanese economy, he added.

Among other products facing higher tariffs, exports of automobile parts to the United States dropped 15.5 percent, while steel shipments plunged 28.5 percent, the ministry said.

Japan remained in the red with China for the 51st consecutive month, logging a deficit of 516.7 billion yen, up 53.7 percent from the year before.
Japan's trade surplus with the rest of Asia, including China, fell 19.1 percent to 450.9 billion yen.

Its trade deficit with the European Union came to 303.2 billion yen, remaining in the red for the 17th straight month.

For the first six months of 2025, Japan logged a trade deficit of 2.22 trillion yen, down 34.2 percent from the previous year.

Exports rose 3.6 percent to 53.36 trillion yen and imports increased 1.3 percent to 55.58 trillion yen in the January-June period.

Earlier, it was reported Japan saw record 21.5 mln foreign visitors in 1H of 2025. 
 
 

Japan's top trade negotiator Ryosei Akazawa held talks with US Commerce Secretary Howard Lutnick on US tariffs on Thursday (Jul 17), as Tokyo races to avert a 25 per cent levy that will be imposed unless a deal is clinched by an Aug 1 deadline.

During the 45-minute phone call, the two sides "re-confirmed each other's position on US tariff measures and engaged in deep conversation", Japan's government said in a statement, adding that Tokyo would continue dialogue with Washington.

The phone talks came after President Donald Trump said on Wednesday that the US would likely keep 25 per cent tariffs on imports from Japan, which take effect from Aug 1, unless the countries agree on a trade deal.

Japanese Prime Minister Shigeru Ishiba will meet US Treasury Secretary Scott Bessent in Tokyo on Friday, the Japanese government said in a separate announcement.

Bessent is visiting Japan to attend the US national day at the World Expo 2025 in Osaka on Saturday. Akazawa will be in Osaka on Saturday to receive the US delegation led by Bessent.

"There are certain elements we cannot compromise," Akazawa told reporters on Thursday. "But we hope to continue efforts to reach an agreement with Aug 1 in mind as a milestone."

Japan has failed to clinch a trade deal with the US as it struggles to win concessions for 25 per cent tariffs on automobiles, a mainstay of the country's export-reliant economy.

Bilateral trade talks are complicated by Japan's upper house election on Sunday, with media polls showing Ishiba's ruling coalition could lose its majority in the chamber - a result that heightens the risk of political instability.
 
 

Struggling auto giant Nissan said Tuesday it will stop production at its plant at Oppama in Yokosuka, Kanagawa Prefecture, at the end of its 2027 fiscal year.

Nissan posted a net loss of 671 billion yen last year and it has said it will cut 15 percent of its global workforce.

"The company will cease vehicle production at the Oppama plant at the end of fiscal year 2027," Nissan said in a statement.

Production of the plant outside of Yokahama will be shifted to another existing factory in Fukuoka Prefecture, Kyushu, it said.

One of Nissan's six domestic plants, Oppama employed around 3,900 people as of October 2024 and began operations in 1961, according to the company's website.

It was a "pioneer in the production of advanced vehicles, such as the Nissan LEAF, the world's first mass-market electric vehicle," it said.

The heavily indebted carmaker, whose mooted merger with Japanese rival Honda collapsed this year, is slashing production as part of its expensive business turnaround plan.

Nissan said in May it would "consolidate its vehicle production plants from 17 to 10 by fiscal year 2027".

Like many peers, Nissan is finding it difficult to compete against Chinese electric vehicle brands.

The merger with Honda had been seen as a potential lifeline but talks collapsed in February when the latter proposed making Nissan a subsidiary.
Nissan has faced numerous speed bumps in recent years -- including the 2018 arrest of former boss Carlos Ghosn, who later fled Japan concealed in an audio equipment box.

Ratings agencies have downgraded the firm to junk, with Moody's citing its "weak profitability" and "aging model portfolio".

This year Nissan shelved plans, only recently agreed, to build a $1-billion battery plant in southern Japan owing to the tough "business environment".

Of Japan's major automakers, Nissan is seen as the most exposed to US President Donald Trump's 25-percent tariff imposed on imported Japanese vehicles earlier this year.

This is because its clientele has historically been more price-sensitive than that of its rivals, according to experts.

One potential solution for Nissan could be Taiwanese electronics behemoth Hon Hai, better known as Foxconn, which assembles iPhones and is expanding into cars.

Foxconn said in February it was open to buying Renault's stake in Nissan.
 

 

The Asuka III, NYK Line’s first new passenger ship in 34 years, is set to go into service on July 20, becoming part of a two-ship fleet for the company alongside the active Asuka II.

NYK Line unveiled the interior of the Asuka III to the press on July 11. The ship weighs 52,265 gross tons, 230 meters long and can accommodate 740 passengers. It boasts an outdoor pool, a casino and six restaurants, and all 381 staterooms include balconies providing ocean views.

As part of decarbonization efforts, the ship’s fuel system allows for the use of liquefied natural gas, which emits fewer greenhouse gases, in addition to conventional heavy and light oils.

On its maiden voyage, the ship will embark on a seven-day tour, visiting Hakodate and Otaru in Hokkaido. The travel fare, for two people sharing a room, ranges from ¥984,000 to ¥4,786,000 per person.

“We aspire to be the flagship of Japan’s cruise industry,” Captain Hisashi Kogue said during the preview event on July 11.

NYK Line’s primary businesses is cargo logistics, such as transporting automobiles and raw fuel. However, the company’s outlook is uncertain due to disruptions from U.S. tariff measures and concerns about economic slowdown. To diversify its revenue sources, the company aims to strengthen its cruise ship business.

According to the Cruise Lines International Association, the number of global cruise passengers reached a record high of 34.6 million in 2024, a 9% increase from the previous year. It predicts this number will approach 40 million by 2027.

The Japanese market is relatively small, with only 224,000 passengers in 2024. However, the Land, Infrastructure, Transport and Tourism Ministry has set a goal of reaching 1 million passengers by 2030.

As cruise ship businesses are expected to experience increased demand both domestically and internationally, companies are focusing their efforts on this sector.

In March, Mitsui O.S.K. Lines, Ltd. announced the purchase of a cruise ship from a U.S. passenger ship company, with plans to commence operations in the second half of 2026. The company also plans to invest about ¥100 billion to build two cruise ships, with the first slated for completion around 2027.

Oriental Land Co. aims to commence cruise ship operations by the end of fiscal 2028. The company’s long-term management strategy, announced in April, also revealed a plan to consider launching a second ship.

“Unlike theme parks, cruises have no land constraints,” said President Wataru Takahashi. “We want to leverage our strength, which is the power of Disney, to provide enjoyment to our customers,” he added, indicating his intention to establish the cruise ship business as a growth pillar.
 
 

Honda Motor Co and Nissan Motor Co are in talks on sharing common basic software for advanced vehicle control in a bid to catch up with U.S. and Chinese rivals, sources familiar with the matter said Monday.

The two automakers aim to launch vehicles to be operated by the new software in the latter half of the decade, as competition for software-defined vehicles or SDVs is expected to intensify in the global auto market.

SDVs require vast amounts of data for their development and operation, giving carmakers that collaborate significant advantages in accelerating development and reducing costs.

U.S. electric vehicle manufacturer Tesla Inc, as well as some Chinese automakers, are already leading the SDV race. Toyota Motor Corp and Mazda Motor Corp are also considering using common software.

The Honda-Nissan talks on software are the latest example of possible joint operations between the two carmakers, after they said in February they had terminated merger talks following Nissan's rejection of a proposal to become a wholly owned subsidiary of Honda.

Among other potential tie-ups, Nissan is in the final stages of talks to supply its U.S.-made pickup trucks to Honda, people close to the matter said earlier.
The two carmakers are also considering sharing chips, motors, and other vehicle components.

The two automakers have been looking for cooperation in software development and battery charging services for EVs since they agreed in March 2024 to start a feasibility study for such a strategic partnership.

Still, Honda said earlier it would roll out EV models equipped with its own software, starting from 2026.
 
 

There is a growing movement among companies to establish “alumni networks,” where former employees can interact with their former employers. The companies are aiming to improve their operations and create new businesses by leveraging the expertise of “outside” people who are familiar with the company culture.

NTT West, Inc. officially launched its alumni network in April, and about 80 people have been interacting via a website. In mid-June, the company held its first in-person networking event at the company headquarters in Miyakojima Ward, Osaka, where former employees gathered and drank beer.

“There’s a ‘common language’ that only people who have worked at the same company can understand, which makes it easier to build relationships,” said Tetsuya Yamamoto, 57, who quit NTT West last year and now works at a consulting firm in Tokyo. “I hope to collaborate with my former company as a business partner to create new opportunities.”

NTT West is considering holding regular networking events in the future.
“We hope to connect with former employees and create new value,” a spokesperson said.

With labor shortages becoming severe, a growing trend had emerged in which former employees were rehired so that their contributions could be utilized. Recently, however, there has been a noticeable shift toward maintaining only loose connections with former employees without rehiring them.

Honda Motor Co. announced in October that it had established an alumni network. The aim of the network is not only to secure talent in the IT and software fields but also to improve the company’s work environment with the expertise of former employees who have worked at other companies.

“We want to leverage knowledge gained at other companies to drive our company’s growth,” a spokesperson said.

An increasing number of companies are creating networks, particularly major companies such as Toyota Motor Corp. and Panasonic Holdings Corp.

“Human capital management, which sees personnel as part of a company’s capital, is becoming increasingly important, and retirees are also being considered as capital,” said Hitoshi Suzuki, CEO of Hackazouk in Tokyo, which develops alumni exchange systems.

However, the utilization of alumni remains limited in practice. According to a survey conducted in November by the specialized magazine “Gekkan Somu” (Monthly General Affairs), only 10.3% of companies have alumni networks. Reasons cited for not having them include “high operational and labor costs” and “no interest in utilizing retired talent.”

“As workforce mobility increases, it is crucial for companies to maintain connections with former employees,” said Kaoru Tsuda, head of the research center at Indeed Recruit Partners Co., which specializes in talent development.

“When it comes to leveraging alumni, it is essential to consider why you want to use them and to align that purpose with your business strategy.”
 

 

Fuji Media Holdings Inc on Thursday said that it will implement measures to prevent activist shareholders from gaining control of the company.

The announcement of the anti-takeover steps comes after shareholders, including prominent investor Yoshiaki Murakami, told Fuji Media executives in meetings held between February and July that they may acquire a 33.3 percent stake in the firm, according to Fuji Media.

Such a move would give them veto power on important management decisions. As of July 1, the shareholders held a 15.06 percent stake.

"We are concerned that (they) would take action to maximize personal profit instead of for the benefit of all shareholders," Fuji Media, the parent company of Fuji Television Network Inc., said in a press release.

Fuji Media said it was planning to issue stock acquisition rights and allocate them for free when an investor acquires 20 percent or more of its shares.
The measures, aimed at reducing the stake held by activist shareholders, will require approval at the shareholders' meeting.

The company also established an independent committee comprising six outside directors.

Fuji Media has been reeling from a sex scandal involving a TV host at Fuji TV that has cost it sponsors and viewers.
 
 

 

With China expected to resume importing Japanese beef, it is a huge step forward for the Japanese government, which aims to increase exports of agricultural, forestry and fishery products.

A Japan-China agreement on an animal health and quarantine took effect Friday, paving the way toward the resumption of Japanese beef exports to China.

However, it is still uncertain when beef shipments to China will actually resume, as the two countries have to hold further discussions regarding product safety and quarantine procedures.

China suspended imports of Japanese beef following an outbreak of bovine spongiform encephalopathy in Japan in 2001. In November 2019, the two countries signed an agreement on cooperation in animal health and quarantine, a necessary step before exporting livestock products.

However, China did not take further steps to resume imports, so the agreement was not able to take effect.

Ahead of resuming exports, Japan’s food safety procedures need to be evaluated by China. It will also be necessary to finalize specific conditions for export products, such as the meat processing method and hygiene control.

“The conditions necessary to resume exports will depend on what the Chinese side asks for,” said an agriculture ministry official. “It’s still uncertain when we will be able to resume exports.”

Japan’s exports of agricultural, forestry and fishery products exceeded ¥1.5 trillion in 2024. The government set a goal to more than triple the figure to ¥5 trillion by 2030.

While beef exports stood at ¥64.8 billion in 2024, the government hopes to almost double the figure to ¥113.2 billion by 2030.

By country and region, the United States was the largest importer of Japanese beef at ¥13.4 billion in 2024, followed by Taiwan at ¥11.2 billion, Hong Kong at ¥8.4 billion and Cambodia at ¥6.7 billion.

Exports of Japanese beef has nearly doubled compared to 2019 as a result of the surging global popularity of washoku Japanese cuisine.

It has been pointed out that Japanese beef still reached China through Cambodia following China’s suspension of its import. If China officially resumes importing Japanese beef, it will become possible for Japan to export the product directly to China, a massive market with a population of 1.4 billion.

The resumption may drastically increase Japanese beef exports.
“As China has such a large population, there will be a high demand for Japanese beef,” said an official of the Japan Livestock Products Export Promotion Council.
 
 

No deal before the initial July 9 deadline for U.S. "reciprocal" tariffs is expected to pressure Toyota Motor Corp and other major carmakers to raise prices to offset higher import costs -- a strategy likely to dent demand and further squeeze profits.

Japan-U.S. trade talks have made little headway, dashing Japanese carmakers' hopes for a deal to eliminate or lower an additional 25 percent auto tariff by the expiration of a pause on country-specific tariffs, now extended to Aug 1.

Britain and Vietnam are the only countries to have reached a deal with the Trump administration. Japan had sought an agreement covering not just reciprocal tariffs but also auto duties and other trade issues as a package.

A total tariff rate of 27.5 percent imposed on April 3 on cars shipped to the U.S. market is threatening to slow overall auto demand, with analysts noting that manufacturers offering attractive hybrid lineups may be better positioned to withstand the impact.

"Automakers, especially those with low sales volumes or in management crisis, will have no option but to raise vehicle prices," said Hiroki Shibata, managing director at S&P Global Ratings.

"Now that the auto tariffs have been in place for three months...automakers' efforts to raise vehicle prices will be more apparent in the coming months through September," he said.

U.S. President Donald Trump said Monday that the United States will impose a 25 percent tariff on imports from Japan starting Aug 1, slightly higher than the previously set rate of 24 percent.

The president said the latest tariff measure will not affect sector-specific tariffs that have already taken effect, such as those on vehicles, auto parts, steel and aluminum.

"It seems the United States has no intention to lower auto tariffs because if it did so, it would keep facing a dilemma of its trade deficit with Japan being left unresolved," said Junichi Makino, chief economist at SMBC Nikko Securities, noting that autos account for about 70 percent of U.S. imports from Japan.

"The Japanese government may give up on its efforts to reduce auto tariffs and shift to negotiating lowering levies on other items," Makino said.

Among Japan's top three automakers, Toyota is expected to be the least affected by price increases, as demand for its wide range of hybrid models is likely to remain strong in the U.S. market, said Yuta Misumi, associate director at S&P Global Ratings.

Hybrid vehicles are gaining popularity in the world's second-largest auto market, with sales jumping 36 percent last year, according to the government-affiliated Japan External Trade Organization.

Honda Motor Co has also attracted U.S. customers with its hybrid lineup, and strong sales in the United States are helping offset sluggish performance in China, the world's largest auto market, Misumi said. Nissan Motor Co., meanwhile, is focused on restructuring, including scaling back global production capacity and its workforce, he added.

Toyota, the world's top carmaker by volume, disclosed the impact of the tariffs for just the first two months of the year through March 2026, saying its operating profit was reduced by 180 billion yen ($1.24 billion).

Nissan said its full-year operating profit could be reduced by up to 450 billion yen, while Honda estimates the impact of the auto tariffs could reach as much as 650 billion yen in the current fiscal year.

Starting July 1, Toyota raised U.S. prices by an average of $270 per vehicle for its Toyota brand models and $208 for its upscale Lexus line.

Mitsubishi Motors Corp., which initially responded to the higher tariffs by suspending deliveries from U.S. ports to local dealers, lifted prices for some models by an average 2.1 percent.

Toyota said the price hikes were part of its annual review, while Mitsubishi Motors said its new prices were not aimed at addressing the auto tariffs.
Among other automakers, Ford Motor Co reportedly raised prices of some U.S.-bound models made in Mexico, and Subaru Corp. also raised vehicle prices.

S&P Global Ratings in May cut its forecast for 2026 U.S. auto sales by 1 million to 15 million vehicles, citing weaker demand partly due to higher prices.

Still, analysts say the quickest and most effective way for carmakers to ease tariff pressure is to pass higher import costs on to customers.

Analysts say carmakers could also build new plants in the United States to avoid higher tariffs -- a goal the Trump administration is seeking to achieve through its trade policy.

But new plants would require significant investment and years to become operational, and carmakers would also need to reorganize parts of their global supply chains by persuading suppliers to serve the new facilities, analysts say.

Higher U.S. labor costs and the need to procure some key components from China are also likely to pose challenges, they say.

As the United States will remain a key market, "the future performance of each company depends on the success of their efforts to mitigate the tariff impact," Misumi said.
 
 

Nippon Steel Corp. plans to double its crude steel production in the United States in three to five years, according to its chairman and chief executive officer, Eiji Hashimoto.

During an interview with The Yomiuri Shimbun on Tuesday, Hashimoto outlined a plan to achieve the goal by improving production efficiency at U.S. Steel Corp., its wholly owned subsidiary. The newly purchased firm is also to be equipped with cutting-edge technology.

Globally, Nippon Steel plans to increase its crude steel output from 58 million tons at present to 100 million tons by expanding production in India and Thailand, said Hashimoto.

At U.S. Steel, whose buyout took about 18 months to pull off, Nippon Steel plans to invest $11 billion (about ¥1.6 trillion) by 2028 to upgrade aging production facilities, added Hashimoto.

U.S. Steel currently produces about 11 million tons of crude steel in the United States, maintaining a U.S. market share of around 15%.
Nippon Steel plans to improve U.S. Steel’s product lineup by providing advanced manufacturing technologies, such as for high-performance electrical steel sheets, which are used in large transformers and motors for electric vehicles.

By improving production efficiency, the firm aims to boost yield and reduce costs.

“Through our new investments, we will expand capacity, broaden our production offerings and double production,” Hashimoto said.

Though 40 engineers have been dispatched to the United States, Hashimoto indicated that more personnel would be needed to support the move to greater capacity and an enhanced product lineup.

The U.S. government holds a “golden share” in U.S. Steel, giving it veto power over key management decisions. While the government could change how it involves itself in the firm after an election, Hashimoto said, “I am not concerned because the U.S. government’s goal of restoring the manufacturing industry aligns with Nippon Steel’s management strategy.”

By raising global crude steel production to 100 million tons, Nippon Steel aims to become the world’s leading steel manufacturer. Acknowledging that ArcelorMittal S.A., a European giant in the industry, is currently the “actual world leader,” Hashimoto said, “We must close the gap and then overtake them.”

In 2019, Nippon Steel and ArcelorMittal jointly acquired a steel manufacturer in India. The companies now plan to increase steel output by 15 million tons and establish one of the world’s largest steel mills there.

Additionally, Nippon Steel plans to increase its production capacity in markets where it operates independently, such as Europe and Thailand.

The steelworks owned by U.S. Steel in Slovakia could be expanded to more than twice their current capacity. Nippon Steel also plans to continue investing in facilities in Thailand, aiming to secure a majority of the market.

With China continuing to export low-priced steel to the global market, Hashimoto argued that “To avoid negative impacts from China, we can’t allow it to dominate crucial markets like the United States, India, Europe and Thailand.”
 
 

Japan's Cabinet Office on Wednesday signed a memorandum of cooperation with the British government, to boost direct investment from Britain into Japan.

Under the memorandum, Japan will promote information sharing and exchanges with the British government, British companies and investors, mainly in the fields of decarbonization and life science.

The balance of direct investment from abroad to Japan stood at 53 trillion yen at the end of 2024, with Britain logging the second-largest investment total, at 9 trillion yen, after the United States.

The memorandum aims to help achieve Japan's target of increasing foreign investment to 120 trillion yen in 2030.

It emphasized the significance of the Japan-Britain Comprehensive Economic Partnership Agreement (CEPA) and the two countries' membership for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
 
 

Japanese solar panel manufacturers are taking a proactive approach as they see business opportunities following the decision by the Tokyo metropolitan government and the Kawasaki city government to require that newly built houses have solar panels installed in April.

Although Chinese manufacturers currently dominate solar panel production, Japanese manufacturers are looking to compete with new products and initiatives. These include new types of solar panels that are better suited to Japanese homes, where securing space for installation is difficult, as well as a system that reduces users’ costs.


New type of product

In late May, Sharp Corp. released a new type of solar panels that can prevent light-related issues by reducing optical reflection.

By adopting glass with pebble-grained surfaces, light is diffused and reflected at a level 1/20 to 1/30 that of conventional models.

Solar panels are generally placed on the south side of roofs to maximize sunlight exposure. In urban areas, particularly in central parts of big cities, where land is limited, panels are often placed on the north side of roofs.

However, since sunlight is reflected at low angles on the north side of roofs, there is a tendency for light to enter nearby houses.


Reducing cost burdens

In June, Panasonic Corp. introduced a system that enables companies to install solar panels without paying any upfront costs through Osaka Gas Co.’s Power Purchase Agreement (PPA) program.

Under the program, Osaka Gas owns the solar power generation systems for 15 years from installation and recovers the initial costs by selling the power generated by the systems.

During this period, homeowners can purchase electricity from Osaka Gas at discounted rates. Starting in the 16th year, homeowners gain ownership of the solar power generation systems free of charge and can use or sell the electricity produced.

According to the Economy, Trade and Industry Ministry, the average cost of installing solar power generation systems for newly built houses in 2021 was ¥271,000 per kilowatt. This figure rose to ¥286,000 in 2024.

The head of Panasonic’s sales promotion division said: “While both installing costs and electricity bills are on the rise, we aim to reduce users’ financial burden with the new system.”

The government has set a goal to reduce greenhouse gas emissions by 46% by fiscal 2030, compared to fiscal 2013 levels.

In order to achieve this goal, the government plans to increase the percentage of newly built homes with solar panels from 36.5% in fiscal 2023 to 60% in fiscal 2030.

Progress has been made thus far in terms of the rate of solar panel installations. The number of solar panel systems in homes has nearly doubled, growing from about 1.69 million in fiscal 2013 to about 3.35 million in fiscal 2023.


Chinese makers gain strength

However, Japanese manufacturers, which were once dominant in solar panel production, are now being pushed aside by Chinese manufacturers who are gaining strength by selling low-priced products.

According to the Japan Photovoltaic Energy Association, about 97% of solar panels purchased in fiscal 2004 in the nation were made by Japanese makers. But in fiscal 2024, about 94.9% of purchased panels were made by foreign manufacturers.

Prof. Yuzuru Ueda of Tokyo University of Science, an expert of engineering studies, said: “It’s difficult to differentiate solar panels made by Chinese manufacturers in the current technological landscape.

Japanese manufacturers should leverage their strengths in design and reliability to suit Japan’s housing conditions and respond to the needs of clients very thoroughly.”
 
 

Japanese convenience store operator Lawson Inc said on Monday that it will launch a new paid service to offer its stores' parking lots to travelers spending the night in their vehicles amid soaring accommodation costs.

The company will hold a trial at six outlets in Chiba Prefecture from July 14 through June next year, with plans to expand the service nationwide. Expecting young people to use the service, it plans to charge 2,500 yen to 3,000 yen per night.

The parking lots, available from 6 p.m. to 9 a.m. the next day, can be reserved through the RV-Park.jp website run by the Japan Recreational Vehicle Association and paid for with a credit card.

The company said that there are not enough places for people to stay overnight in vehicles amid the growing popularity of recreational vehicles and budget-minded travel.

While public bath facilities and roadside stations also offer similar services, Lawson emphasizes the advantage of the outlets' around-the-clock operation, which enables users to buy food and drinks and use the bathroom in the store at any time.

"We can also provide a sense of security since there are always staff in the store," an official of the company said.
 
 

Nissan Motor Co is exploring a partnership with Taiwan's electronics giant Foxconn in the electric vehicle sector, a source familiar with the matter said Sunday.

The plan under consideration would involve producing Foxconn's EVs at Nissan's signature Oppama plant near Tokyo, which had previously been eyed for closure, the source added.

If realized, the deal is expected to keep the Oppama plant in operation, reversing earlier closure plans prompted by Nissan's financial difficulties. The partnership could also give momentum to the company's ongoing restructuring efforts.

Foxconn has been accelerating its EV operations, having already agreed to supply EVs to Mitsubishi Motors Corp. The firm is also in talks with Mitsubishi Fuso Truck and Bus Corp over the delivery of electric buses.

The Taiwanese company views a tie-up with Nissan as a potential catalyst to expand its footprint in the Japanese market, the source said. Nissan's main Oppama plant in Yokosuka, Kanagawa Prefecture, is where the firm pioneered EV production.
 
 

Japanese companies agreed to raise wages by an average 5.25 percent in this year's spring wage talks, the second straight year to exceed 5 percent, the country's largest labor union said Thursday, although salary growth failed to keep pace with ongoing inflation.

The Japanese Trade Union Confederation, also known as Rengo, said its final tally of the results of pay negotiations from over 5,000 member unions found the average monthly wage hike stood at 16,356 yen ($110).

The results came a year after wages increased by over 5 percent for the first time in 33 years.

But wages among small- and medium-sized firms lagged behind their larger counterparts, rising by an average 4.65 percent, or 12,361 yen.

"The scope (of companies) raising wages has expanded, but it's a shame that small to medium-sized firms have failed to reach 5 percent. We were unable to halt the growing gap," said Akira Nidaira, executive director at Rengo.

The latest government data also showed real wages falling for the fourth straight month in April, as core consumer prices continued their upward trend.

"The difference in profits and corporate resilience became glaringly apparent," said Shinichiro Kobayashi from Mitsubishi UFJ Research and Consulting Co., adding that smaller enterprises may struggle to recruit people because of the gap.

Spring negotiation wage hikes had fallen below 3 percent since 1995, but grew to 3.58 percent in 2023. The final tally in 2024 was an average 5.10 percent as a whole, and 4.45 percent among small to medium-sized firms.

Meanwhile, summer bonuses for union members in major companies hit a record average 990,848 yen, the highest since the current method of data collection was introduced in 1981, according to preliminary numbers from the Japan Business Federation.

The figure rose 4.37 percent compared to the previous year, climbing for the fourth straight year.
 
 

Japanese carmakers have largely absorbed the cost of U.S. President Donald Trump’s tariffs on auto imports, a move that may undermine the Asian nation’s negotiating power ahead of a July 9 deadline that will see duties rocket even higher.

So far, just three of Japan’s six major automakers have raised prices in the U.S., and only Subaru’s hike has come close to the 25% tariff imposed on imported vehicles.

Toyota, the world’s No. 1 carmaker, only lifted prices on some models by a few hundred dollars while Mitsubishi Motors increased prices by an average of just 2.1% across three models. The average price of a new car in the U.S. rose 2.5% in April to about $48,700.

The modest nature of the changes signals Japan’s carmakers are reluctant to pass the hit on to consumers. But it’s a decision that could backfire. Sparing American shoppers any kind of extreme sticker shock means Trump is less likely to change course.

Auto tariffs have emerged as a key sticking point in bilateral negotiations between the U.S. and Japan as Trump fixates on U.S. deficits in the sector while Japan tries to safeguard one of its main economic powerhouses.

Despite Japan’s chief trade negotiator Ryosei Akazawa holding a seventh round of talks with U.S. counterparts, the two countries remain at loggerheads and the clock is ticking: across-the-board levies of 24% on Japanese goods are set to come into effect next Wednesday. Trump has even suggested they could be as high as 35%.

Industry watchers say an extended stalemate may force Japanese carmakers’ hands, with an ultimately beneficial outcome.

"If prices continue to rise due to Trump’s tariffs, the government will realize it’s not a simple scenario where raising tariffs benefits the U.S. economy,” Takeshi Miyao, an analyst at automotive consultancy Carnorama, said. "This may lead to changes in tariff negotiations.”

Japan’s cautious approach contrasts with the quick retaliation by China, which leveraged its dominance in industries like e-commerce to make it clear to Trump that American consumers would be footing the bill. Some products sold on platforms like Temu and Shein nearly doubled in price in the wake of fresh duties.

Tokyo, for its part, has maintained its stance that it will try to settle all the tariff disputes in one go. Akazawa has made clear that despite the looming July 9 deadline, he won’t be pressured into a deal.

The protracted negotiations make it more likely Japan’s carmakers will turn to price increases in the U.S. to minimize the impact on their bottom lines.

Those hikes could start when manufacturers offer upgraded specifications on models, Bloomberg Intelligence senior analyst Tatsuo Yoshida said. Still, any price increases are likely to be phased in gradually, and it could take as long as three to four years for a 25% levy to be reflected in vehicle prices, he said.

While the consensus is that some level of tariffs on cars will be inevitable, a lower 10% tariff may be more palatable. The auto industry is a bellwether for wage trends and generates around 10% of gross domestic product. The sector also accounts for one-third of Japan’s exports to the U.S..

"There’s no reason to continue cutting profits indefinitely to offset high tariffs when it’s unclear how long this situation will persist,” Carnorama’s Miyao said.
 
 

Japan’s newest issued banknotes marked their first anniversary on Thursday, yet the new bills still only account for about 30% of all bills in circulation.

Although more vending machines and other devices have become compatible with the new bills, the replacement of older banknotes has been slow.

According to the Japan Vending System Manufacturers Association, nearly all railway ticket machines have become compatible with the new bills over the past year. The new bills are also being accepted by 50%-60% of beverage vending machines.

However, the transition is slow when compared to the last time new banknotes were introduced in 2004.

According to the Bank of Japan, the new bills introduced in 2004 made up 61.1% of those in circulation 11 months after their introduction. This time, however, the figure was only 28.8%.

This difference can be attributed to the increased use of cashless payment methods, such as credit cards and QR code transactions. The percentage of cashless payments rose to 42.8% in 2024, which is a 2.5-fold increase from 10 years ago. This reflects the growing number of people who do not use banknotes.

Another factor contributing to the slow adoption of the new banknotes is the increase in the number of people keeping cash at home. The number of bills in circulation grew from about 11 billion at the end of 2004 to about 17 billion at the end of 2024.

Banks have kept interest rates on deposits low due to the BOJ’s low interest rate policy. This has apparently prompted an increasing number of people to store cash at home, resulting in a fewer number of damaged or soiled older banknotes being returned to the central bank.

The city of Fukaya, Saitama Prefecture, the hometown of Eiichi Shibusawa, who is featured on the new ¥10,000 banknote, held an event on Wednesday to celebrate the first anniversary of the new bill’s issuance.

The stalls set up at the event attracted many visitors. Among those who were paying with the new banknotes, some were making payments using QR codes.

“I usually pay with my credit card or via QR code because I don’t want to bring bulky coins,” said a 50-year-old residet in the city.

However, experts believe that the demand for banknotes will remain to some degree. While cashless payments are convenient, they could become unusable in the event of a system malfunction or disaster. The new banknotes feature cutting-edge anti-counterfeit measures, which gives people more confidence in the bills.

“People will have fewer occasions to use cash, but it will continue to be a part of society,” said Tsuyoshi Ueno, a senior economist at the NLI Research Institute.
 
 

The number of food and beverage items that will face price hikes in 2025 is projected to surpass 20,000 for the first time in two years, mainly due to high material and logistics costs, a credit research firm said Monday.

In July alone, 195 major food makers are planning price hikes for 2,105 items, such as seasoning and snacks, about a fivefold jump from a year earlier, according to a survey by Teikoku Databank Ltd.

Price hikes through November that have already been announced involve 18,697 items, with the company saying that the trend of rising prices of food and beverages is likely to continue "for the time being."

By category, seasoning, including broth and curry roux, will be mostly affected, with 6,108 items to see higher prices, followed by beverages including beers and soft drinks at 4,483 items and processed food including frozen meals and packaged precooked rice at 4,138.

In addition to a surge in raw material costs, the company said high utility costs and increasing personnel expenses due to labor shortage are also driving the price hikes.

Since crude oil prices have recently fluctuated amid tensions in the Middle East, the credit research firm said, "We need to keep an eye on price hikes derived from energy."

The number of food items that saw price hikes totaled 32,396 items in 2023 but dropped to 12,520 in 2024, according to the company.
 
 

Strong demand from inbound tourism has significantly driven up land prices in tourist destinations nationwide, a trend extending to areas around the 2025 Osaka-Kansai Expo.

According to an announcement by the National Tax Agency on Tuesday, land prices rose year-on-year in 35 prefectures, and the national average increased for the fourth consecutive year.


Popular ‘Little Kyotos’

A 55-year-old Belgian tourist was seen smiling as she looked at a “sarubobo” (monkey baby) — a local folk artwork — in Takayama, Gifu Prefecture, on June 25.

She said that a guidebook sparked her interest in the culture and nature in the area and that she found the traditional wooden buildings to be amazing.

Takayama is popular for its old townscape, which comprises historic sake breweries and traditional houses.

Last year, the city, dubbed “Hida’s Little Kyoto,” saw its foreign overnight visitors surge to about 769,700, an increase of 70% compared to the previous year. That number is a record high, significantly surpassing the pre-pandemic figure of about 612,000 in 2019.

Reflecting this popularity, land prices in the area along Kami-Sannomachi Shimo-Sannomachi-dori street, located in the central part of the city, rose by 28.3% this year compared to the previous year, the fourth highest increase in the nation.

According to the city’s historic townscape preservation association, the surge in demand driven by inbound tourism means that buyers are quickly found even for shops on the main street of Kami-Sannomachi that closed due to the aging of their owners. The trend has left the street with almost no vacant properties.

At the Sumiyoshi Ryokan inn with a more than 100-year-old building located along the Miyagawa river, a stream famous for its morning market, more than 90% of guests are inbound tourists.

“We’re almost fully booked until September,” said Tsunetada Minami, 50, who manages the inn. “International travelers are essential for the survival of our business.”


Spreading on social media

Even in Tokyo, where land prices saw the highest increase among all prefectures at 8.1%, it was mainly inbound tourism that was responsible for the rise.

Land prices on Kaminarimon-dori street in Asakusa, Tokyo, recorded a 29% increase, the third highest nationwide and the highest in Tokyo. Nakamise-dori shopping street in the district is bustling with foreign tourists posing for photos in kimonos and buying souvenirs.

“Events like Sanja Festival have spread on social media, increasing their popularity among foreigners,” said Shigemi Fuji, 76, chairperson of the Asakusa Tourism Federation.

Meanwhile, it has also been pointed out that the number of Japanese visitors to Asakusa has been decreasing. “Some rickshaw drivers have days when all their passengers are foreign tourists,” said Takashi Sudo, 45, manager of Isshin, which operates a rickshaw service.



Appeal of Expo

Although the Osaka-Kansai Expo, which opened in April and is being held on the artificial island of Yumeshima in Konohana Ward, Osaka, had yet to open at the time of the land price assessment, speculation over associated redevelopment projects has still boosted land prices in the ward.

The area around Yumeshima Station on the Osaka Metro Chuo Line, saw an 18.2% increase from the previous year. The station, which opened in January, is the closest one to the Expo venue.

Land in the area around Bentencho Station, a station where passengers transfer from a JR line to access Yumeshima, also saw an 11% price increases.

Near the station, there is a 20,000-square-meter plot of land, which used to be the site of a municipal high school. The city in September last year solicited redevelopment proposals for the site and received 12. “There is a lot of interest in the area, as it’s close to Yumeshima,” a city official said.

According to a British company that operates hotels in 10 locations in Osaka, the average rate for a room at its hotels has increased by 30% year-on-year since the Expo opened in April.

“In addition to visitors from Asia, there has been a notable increase in visitors from Europe and the United States,” an official of the company said. “The Expo is serving as a huge advertisement for promoting the appeal of Osaka to the world.”
 
 

The Japan Fair Trade Commission has decided to issue a cease and desist order against Harley-Davidson Japan K.K. (HDJ), a Tokyo-based motorcycle sales company, for unfair trade practices in violation of the antimonopoly law, sources report.

According to the sources, HDJ unilaterally imposed difficult-to-meet sales quotas on dealers, a practice which was detrimental to them. The JFTC is also expected to issue a surcharge payment order of about ¥200 million.

Harley-Davidson is the leading manufacturer of large motorcycles in the United States, with some models costing over ¥5 million. HDJ, its Japanese subsidiary, has an exclusive distribution agreement with about 90 dealers in Japan.

The sources say that no later than January 2023, HDJ began saddling dozens of dealers with sales quotas that they could not meet without purchasing new motorcycles from themselves. HDJ also indicated that it would not renew the dealers’ exclusive sales contracts if they did not at least partially meet these quotas.

The dealers, not wanting their contracts to be terminated, bought new motorcycles in the names of their own executives and employees to drive up their sales numbers.

It is believed that the purchased vehicles were registered in the names of the executives and others and resold as “registered unused vehicles” at discount prices lower than those of new vehicles. Some dealers spent tens of millions of yen a year buying their own motorcycles.

The JFTC found that HDJ used its strong position to gain profits for itself at the dealers’ expense, and that such practices legally constituted “abuse of a superior bargaining position.” It has already sent HDJ a plan for measures to be taken and will formally issue the order after hearing HDJ’s opinion.
 
 

China has lifted a ban on seafood imports from most regions of Japan, which was imposed two years ago due to concerns over the release of treated waste water from the Fukushima nuclear plant.

Beijing said it will "conditionally resume" the imports from Japan with the exception of 10 of the country's 47 prefectures, including Tokyo and Fukushima.

Samples collected over long-term monitoring of nuclear-contaminated water from Fukushima had "not shown abnormalities", China's General Administration of Customs wrote on 29 June.

A tsunami in 2011 flooded three reactors of the Fukushima plant in north-east Japan in what is regarded as the world's worst nuclear disaster since Chernobyl.

Three of six nuclear reactors at the plant suffered a meltdown during the tsunami, leaving the facility severely damaged. Over the years more than a million tonnes of treated waste water accumulated there.

In 2023, Japan began discharging the treated waste water into the ocean - a move backed by the International Atomic Energy Agency. The process is expected to take up to 30 years.

Although most experts agree that the release is safe, some scientists say there isn't enough research yet on the potential impact on the ocean.

But Beijing criticised Japan's decision and almost immediately banned seafood from the country, citing environmental concerns and safety fears.

Before that, China had been Japan's biggest seafood buyer accounting for nearly a quarter of its exports.

Japan has said that China's move to partially lift the ban was a "positive" move, adding that the government will continue to urge Beijing to accept seafood imports from all of its regions.

The decision came after Tokyo promised to ensure the safety and quality of its exports.

Production companies that had suspended imports must now reapply for registration in China and would be subject to supervision, officials said.

China and Japan are key trading partners but have long had a testy relationship because of territorial disputes and Japan's occupation of parts of China in the past.
 
 

Japan is driving Asia's M&A rebound in 2025 with a record $232 billion worth of deals in the first half, and bankers expect the trend to sustain fueled by multi-billion dollar take-private arrangements, outbound investments and private equity activity.

Management reforms to tackle chronic low valuations among Japanese firms are spurring a flurry of foreign and activist investor interest, while Japan's low interest rates - which support deals - mean the appetite for more deals remains strong, bankers say.

The deals involving Japanese companies more than tripled in value in the first half, while in the same period Asia M&A value reached $650 billion, more than double the amount year-on-year, LSEG data showed.

Bankers say government calls for better corporate governance, including the privatisation of listed subsidiaries, as well as outbound acquisitions by Japanese firms seeking new growth avenues will keep igniting mega deals.

Moreover, Japan has been relatively insulated from global volatility despite the broader geopolitical and macroeconomic uncertainty, helping to underpin deals momentum, they say.

A cohort of Toyota Motor group companies and telecoms giant Nippon Telegraph and Telephone took private listed subsidiaries in deals worth $34.6 billion and $16.5 billion respectively, among the largest transactions globally.

"There are many other deals like these on the way and their number is increasing," said Kei Nitta, global head of M&A at Nomura Securities.
SoftBank Group also led a new fundraising of up to $40 billion into ChatGPT maker OpenAI in the biggest private tech funding round in history.

The long-standing trend of Japanese firms looking abroad for growth opportunities in the face of a shrinking home market has continued despite heightened uncertainty in the global economy.

 Japanese financial institutions, such as insurer Dai-ichi Life and Nomura Holdings, announced major deals and bankers say demand remains robust across industries.

"Debates over tariffs and foreign conflicts mean that some investment decisions are taking longer than usual and some customers have become more cautious, but we consider appetite for investment itself to remain very strong," Nitta said. 

Japanese firms themselves have also become more attractive acquisition targets as global firms have reconsidered their supply chains and distribution of resources over the past two years, Nitta added.

However, there are some hurdles that could slow dealmaking in Japan.
Uncertainty around the global economic outlook has made assessing companies' future prospects more difficult, leading to a disconnect in valuation expectations between buyers and sellers.

This has caused an increasing number of deals to fail, said Atsushi Tatsuguchi, head of the M&A advisory group at Mitsubishi UFJ Morgan Stanley Securities.

As part of the corporate reform drive, firms are under rising pressure to offload non-core business units, with private equity funds increasingly the destination for the hived off parts.

Convenience store operator Seven & I Holdings – itself the target of a buyout bid from Canadian rival Alimentation Couche-Tard – sold off a bundle of its superstores and other peripheral business units to Bain Capital for some $5.5 billion in March.

"Carve-outs of operating companies' non-core assets will continue to be a trend in the near term," said senior deputy head of M&A advisory at SMBC Nikko Securities, Yusuke Ishimaru.

Bankers say there is a strong pipeline of potential deals involving private equity firms.

Potential deals to be announced in the second half include an acquisition of Japanese cybersecurity firm Trend Micro which has a market value of 1.32 trillion yen ($8.54 billion).

Bidders included Bain Capital and EQT, Reuters reported earlier this year.
"Private equity funds are also seen as promising buyers for taking listed companies private," Ishimaru said.
 
 

Nissan Motor Co. plans to make large-scale production cuts at its key Oppama plant in Yokosuka, Kanagawa Prefecture, in July and August, according to sources.

The move was prompted by sluggish sales of the Nissan Note, a compact car produced at the factory, the sources said. Nissan reportedly plans to reduce production at the plant by nearly 50%, and the production capacity utilization ratio could fall to around 20%.

The Oppama plant is one of seven domestic and overseas factories that Nissan is considering closing. The difficulties facing the plant are becoming pronounced.

During the cutback period, employees at the plant will be engaged in tasks such as maintenance of production lines. Nissan does not plan any layoffs.

The Oppama plant began operations in 1961 as Nissan’s “mother plant” for establishing production technologies. With an annual production capacity of 240,000 units, the plant began producing the Leaf, the world’s first mass-produced electric vehicle, in 2010, and produced five models through 2019.

However, the plant has been downsized partly due to aging facilities. The production of Leaf vehicles was relocated to the Nissan Tochigi plant in Tochigi Prefecture, and only the Note and its derivatives are currently produced at the Oppama plant.

In 2024, the Oppama plant produced approximately 100,000 units and its capacity utilization rate stood at only 40%, far below the break-even point of 70% to 80%.

Sales of the Note were approximately 8,000 units per month from fiscal 2021 to fiscal 2024. Only 4,470 units sold in April 2025, down 25% from the same month last year.

Since there has not been a full model change in the Note since the end of 2020, it has been losing ground to vehicles by other carmakers and stocks of unsold Note cars have accumulated, making it inevitable for the automaker to sharply cut back production.

Nissan reported a consolidated net loss of ¥670.8 billion for the fiscal year ending March 31, 2025. In May, the automaker announced a plan to close seven of its 17 finished-car plants in Japan and overseas by fiscal 2027 in an effort to restructure its business.

In Japan, Nissan is making arrangements to close its Oppama plant and the Shonan plant in Hiratsuka, also in the prefecture, of its subsidiary Nissan Shatai Co. Overseas, the automaker is considering terminating vehicle production in South Africa, India and Argentina and closing two plants in Mexico.

Nissan’s global production capacity stands at 5 million units a year. However, the automaker produced 3.1 million units in fiscal 2024, and the capacity utilization rate has been sluggish at 60%.

Under these circumstances, Nissan plans to consolidate its finished vehicle plants in Japan and overseas by fiscal 2027 to reduce its annual global production capacity, excluding China, to 2.5 million units. It also seeks to increase the capacity utilization rate of the remaining 10 plants to nearly 100%.
 
 

The European Union on Friday proposed making all eel species, including the Japanese eel, subject to regulation under an international treaty to protect endangered species, while Japan opposes the move.

The EU, along with the Dominican Republic, Panama and Honduras, submitted the proposal to the secretariat of the Convention on International Trade in Endangered Species of Wild Fauna and Flora, or CITES.

The proposal is aimed at putting fry, full-grown eels and processed eel products of all 18 species under regulation.

CITES, also known as the Washington convention, lists animals and plants requiring protection in annexes on three levels depending on the degree of regulation. The EU and others seek to add all eel species to the second level.

The proposal will be discussed at a conference of the parties to the pact to be held in Uzbekistan from November to December.

If the proposal is approved, exporters will be obliged to issue permits based on scientific assessments, putting eels and processed products under stricter trade control.

Japan, where eels are prized food, opposes the proposal. A Fisheries Agency official has said, “There is no risk of eels becoming extinct due to international trade.”

On Friday, agriculture minister Shinjiro Koizumi voiced deep regret over the situation, adding that his country will do everything it can to block the adoption of the proposal in cooperation with China and South Korea.
 
 

Private-sector rice imports to Japan are soaring as domestic rice prices remain high, apparently for use in "bento" boxed meals and household consumption.

According to trade statistics released by the Finance Ministry on Friday, 10,607 tons of rice was imported by private-sector companies in May, about 125 times the monthly average for last year.

"If we leave the surging rice prices as they are, (rice imports) may grow further," agriculture minister Shinjiro Koizumi said Friday.

The government imports an annual 770,000 tons of rice free of tariffs under its minimum market access obligation agreed with trading partners.

Meanwhile, private companies can import rice if they pay a tariff of 341 yen per kilogram.
 
 

Toyota Motor Corp said Friday its global sales for May rose 6.9 percent from a year earlier to 898,721 units, a record high for the month, due to last-minute demand in the United States amid concerns over possible price hikes due to high tariffs imposed by U.S. President Donald Trump.

Meanwhile, global production dipped 0.7 percent to 806,677 units, falling below the same period the previous year for the first time in five months.

The United States raised the tariff rate on imported passenger vehicles by 25 percentage points to 27.5 percent in early April, with Tokyo and Washington holding multiple rounds of talks to negotiate an agreement.

By region, sales in the United States grew 10.9 percent to 240,176 units. Those in China were up 6.8 percent to 149,887 units, with hybrid vehicles especially sought after due to government subsidies.

Domestic sales climbed 4.4 percent to 106,586 units on a rebound from the previous year when Toyota was hit by a verification scandal. The launch of new models including the Land Cruiser 250 series also helped lift sales in the country.

The automaker said production in the United States dropped 1.8 percent to 120,539 units due to one fewer working day. Domestic output fell 5.4 percent to 241,570 units.

Honda Motor Co, the country's second-biggest automaker, also benefited from greater demand in the United States in May, with sales up 6.5 percent from the previous year to 135,432 units.

But globally, sales slumped by 4.1 percent to 298,167 units, with those in China logging its 16th consecutive monthly decline on fierce price competition.

Meanwhile, Nissan Motor Co, which is struggling to turn around its business and undergoing restructuring, saw global output decline 16.5 percent to 229,645 units and global sales slip 6.0 percent to 256,159 units.

The company earlier this week said it forecasts a net loss of 200 billion yen for the April-June period, weighed down by effects of the U.S. tariffs.
 
 

Asian shares were mixed on Friday, losing some of their morning gains, after U.S. stocks ran to the brink of another record. U.S. futures and oil prices also logged modest gains.

Investors were watching for further details after President Donald Trump said the U.S. and China had signed a trade deal. Commerce Secretary Howard Lutnick said in an interview on Bloomberg TV that the deal was signed two days ago, but he gave no details, saying “The president likes to close these deals himself.”

China's Commerce Ministry said Friday that the two sides had “further confirmed the details of the framework.” But its statement was vague, not explicitly mentioning an agreement to ensure U.S. access to rare earths, materials used in high-tech applications that have been at the center of negotiations.

“China will approve the export applications of controlled items that meet the conditions in accordance with the law. The United States will cancel a series of restrictive measures taken against China accordingly. It is hoped that the United States and China will meet each other halfway,” it said.

Worries about Trump’s higher tariffs have receded since the president shocked the world in April with stiff proposed levies, but they have not disappeared. The wait is still on to see how big the tariffs will ultimately be, how much they will hurt the economy and how much they will push up inflation.

Hong Kong’s Hang Seng index lost 0.3% to 24,250.77, while the Shanghai Composite index gave up 0.7% to 3,424.23 after China reported that industrial profits slid 9.1% in May, the sharpest drop since last October.

“Beijing may have paused the worst of the trade fight with Washington, but the tariff scars are showing—and unless demand picks up or pricing stabilizes, the pressure on margins and business sentiment will linger,” Stephen Innes, Managing Partner at SPI Asset Management, said in a commentary.

Tokyo’s Nikkei 225 index 1.4% to 40,150.79 as the government reported that consumer prices eased slightly in May.

South Korea’s KOSPI Composite Index fell 0.8% to 3,055.94, while Australia’s S&P/ASX 200 shed 0.4% at 8,514.20.

Markets have settled somewhat after the upheavals of the Israel-Iran war and its aftermath.

 

On Thursday, the S&P 500 climbed 0.8% to 6,141.02 and was sitting just 0.05% below its all-time closing high set in February.

It briefly topped the mark during the afternoon in the latest milestone for the index at the heart of many 401(k) accounts, which had dropped roughly 20% below its record during the spring on worries about President Donald Trump’s tariffs.

The Dow Jones Industrial Average rallied 0.9% to 43,386.84, and the Nasdaq composite gained 1% to 20,167.91.

Reports Thursday added to evidence the U.S. economy is holding up despite higher tariffs and other challenges, though it has slowed. Orders for washing machines and other manufactured goods that last at least three years grew by more last month than economists expected. Another report said fewer U.S. workers filed for unemployment benefits last week, a potential signal of fewer layoffs.

A third report said the U.S. economy shrank by more during the first three months of 2025 than earlier estimated. But many economists say those numbers were distorted by a surge in imports as companies tried to get ahead of tariffs. 

 

They’re expecting a better performance in upcoming months.
Following the reports, Treasury yields swiveled up and down in the bond market before easing.

The yield on the 10-year Treasury fell to 4.24% from 4.29% late Wednesday. The two-year Treasury yield, which more closely tracks expectations for what the Federal Reserve will do, fell to 3.71% from 3.74% late Wednesday.

Analysts said yields may have felt pressure because of a report from The Wall Street Journal saying Trump could name his nominee to replace Fed Chair Jerome Powell unusually early, in an attempt to undermine him.

That could hurt confidence among investors about the Fed’s capability to make unpopular decisions when it comes to fighting inflation.

In other dealings on Friday, the U.S. benchmark crude gained 32 cents to $65.56 per barrel. Brent crude, the international standard, added 34 cents to $67.03 per barrel.

The U.S. dollar rose to 144.50 Japanese yen from 144.40 yen. The euro edged higher to $1.1715 from $1.1703.
 
 

The average monthly salary in Tokyo is about half of those in New York, according to a report released by the Deutsche Bank Research Institute.

The report notes that while the U.S. economy has grown, Japan’s monthly salaries have dropped to the global average following events such as the collapse of its bubble economy.

A comparison was made of after-tax monthly salaries in 69 major cities worldwide, with the salaries were converted to U.S. dollars.

The report indicates that the average monthly salary in Tokyo is $2,592 (about ¥370,000), ranking 38 among the surveyed cities. This figure is nearly 50% lower than New York’s monthly salary of $5,128 (about ¥740,000), which ranks seventh.
 
 

Nissan Motor Co on Tuesday said it forecasts a net loss of 200 billion yen for the April-June quarter and apologized for the worsening performance as it faced criticism from shareholders at their annual meeting.

New President and CEO Ivan Espinosa, who took over from Makoto Uchida in April, vowed to return the business to profitability by fiscal 2026 after apologizing for the poor outlook, encumbered by high auto tariffs imposed by U.S. President Donald Trump.

He reiterated restructuring plans that include shuttering seven factories and cutting 20,000 jobs, saying that the company would release the information on which factories would be affected swiftly once decided.

Nissan has been grappling with poor sales in the United States and China, logging a net loss of 670.90 billion yen for fiscal 2024, which ended at the end of March. It initially did not issue an earnings forecast for the current fiscal year.

With Uchida also present at the meeting, shareholders repeatedly questioned his responsibility and expressed indignation at the lack of dividends in contrast to massive payouts to four former executives, including Uchida, for leaving top roles. However, Uchida declined to respond.

"Many demanded answers from Uchida and asked what the point of his attendance was if he was refusing to answer any questions," said Tsuyoshi Maruki, CEO of Strategic Capital Inc, an activist investor.

But he expressed high expectations for Espinosa, noting that he had a calm demeanor despite the tumult of the shareholders meeting, adding, "We'll just have to anticipate good results from now on."

In addition to the job cut and plant closures, Nissan is also reportedly planning to sell its headquarters building in Yokohama to help cover costs.
"I was not convinced by their explanation.

The management was avoiding responsibility," said a 76-year-old shareholder who has driven Nissan vehicles for around 50 years. "They were just putting it all on the workers and firing them."

Nissan and Honda Motor Co revealed in December plans to begin merger talks under a holding company, aiming to share the financial burden of developing electric vehicles and software to better compete with global rivals, but the talks broke down less than two months later.

However, the two automakers, along with Mitsubishi Motors Corp, have continued discussions regarding a possible collaboration on the electrification of automobiles, among other areas.
 
 

Thirty major industry associations in manufacturing sectors such as steel, electronics and textiles established a cross-industry human resources management organization to secure more highly skilled foreign workers to work in Japan.

About 7,000 companies will join the Japan Association for Human Resources in Industrial Product Manufacturing (JAIM), which will require each member company to provide a 1.5%-3% year-on-year pay raise for those who work under the specified skilled workers status.

The Economy, Trade and Industry Ministry on Wednesday recognized JAIM as a registered entity to support acceptance of the highly skilled, long-term workers.

JAIM includes 30 major manufacturing-related organizations such as the Japan Iron and Steel Federation, the Japan Electronics and Information Technology Industries Association and the Japan Textile Federation.

A similar organization has already been established in the construction industry, but JAIM, the second such organization, covers a wider range of industries.

The specified skilled workers system was launched in 2019, with 280,000 foreign nationals working under the system as of fiscal 2024. Of these, 45,000 are in the manufacturing industry, and the number is expected to quadruple from the current figure to up to 170,000 in fiscal 2028.

Many of the JAIM member firms face severe labor shortages and aim to retain workers by raising wages. Specifically, a minimum year-on-year salary growth rate per foreign worker will be set at 3% for large companies and 1.5% for small and midsized companies. JAIM will verify the employers’ performance annually through documents, and companies that fail to meet the standards will be required to raise wages the following year.

If firms do not adhere to the guidelines, they will be expelled from the association and will no longer be able to hire the specified skilled workers.

The government plans to abolish by fiscal 2027 the technical intern training program, which caused such problems as long working hours and unpaid wages.

Instead, the Employment for Skill Development Program will be established to create a favorable working environment for foreign workers and encourage their transition of residential status to specified skilled workers.
 
 

Japan's Nippon Yusen and Mitsui O.S.K. Lines said on Monday they have instructed their vessels to minimize the time spent in the Gulf as they continue to transit the Strait of Hormuz following the U.S. strikes on Iranian nuclear facilities.

The shipping companies said they are closely monitoring the situation and sharing updates with ships operating in the region.

"We are instructing our vessels to shorten their time in the Persian Gulf whenever possible, depending on their schedules," a Nippon Yusen spokesperson said.

"We will make decisions on each vessel's passage through the Strait of Hormuz on a flexible basis," he added.

MOL's safety operation support center in Tokyo has stepped up 24-hour surveillance, a company spokesperson said.

 

"We are advising vessels operating in the area to exercise maximum caution and providing them with latest information," he said, adding that their vessels have also been instructed to minimize the time in the Gulf.

President Donald Trump said the U.S. had "obliterated" Iran's main nuclear sites in strikes over the weekend, joining an Israeli assault in an escalation of the conflict in the Middle East as Tehran vowed to defend itself.

Iran's Supreme National Security Council must make the final decision on whether to close the Strait of Hormuz, Iran's Press TV said on Sunday, after parliament was reported to have backed the measure.

Iran has long used the threat of closing the Strait, through which around 20% of global oil and gas demand flows, as a way to ward off Western pressure which is now at its peak following the U.S. strikes.
 
 

Japan’s biggest banks are considering evacuating employees and their families from financial hubs in the Middle East, just days after U.S. airstrikes on Iran increased risks in the region.

Mitsubishi UFJ Financial Group has started to pull the families of staff out of locations including Dubai, and will consider evacuating workers if they need to accompany them, a spokesperson said Monday. Japan's biggest bank has also halted unnecessary travel in and out of the region, it said.

After the United States on Saturday launched attacks on nuclear facilities in Iran, Japanese companies are rushing to protect their employees and brace local operations for the fallout from any potential retaliation by the Islamic Republic.

Mizuho Financial Group said it urged employees in the region to exercise caution, and has started to coordinate individual evacuations. Sumitomo Mitsui Financial Group is looking to bring its staff from locations including Qatar and the United Arab Emirates back to Japan.

In the UAE, the twin hubs of Dubai and Abu Dhabi have lured banks and hedge funds as traders embrace zero income taxes, a time zone conducive to working with both East and West and a lifestyle tailor-made for the rich.

Saudi Arabia and Qatar, meanwhile, have also been attracting financial firms in an attempt to diversify away from oil.

MS&AD Insurance Group also said it’s looking to temporarily recall employees in both UAE cities back to Japan.

Trading company Marubeni said it has suspended business trips to the Middle East and began evacuating family members of employees in certain countries.

Japan Airlines plans to reroute direct flights between Tokyo’s Haneda Airport and Doha Airport to avoid airspace above the Persian Gulf and the Gulf of Oman, which adds about 20 minutes of flight time, a spokesperson said Monday.
 
 

The Japanese and Indian governments are arranging for Indian Prime Minister Narendra Modi to visit Japan in late August for talks with Prime Minister Shigeru Ishiba, diplomatic sources said Saturday.

The two leaders are expected to agree on India's adoption of a next-generation shinkansen bullet train being developed by East Japan Railway Co. for a high-speed rail project underway in western India, the sources said.

They may also agree to revise the 2008 Joint Declaration on Security Cooperation to expand their security partnership amid China's increasing maritime prowess, they said.

The visit would be Modi's first since May 2023, when he attended the Group of Seven summit in Hiroshima, western Japan.

Modi and Ishiba also aim to strengthen communication ahead of a four-way summit with the United States and Australia under the Quad framework, which New Delhi is set to host in the fall.

The high-speed rail line will connect the western Indian cities of Ahmedabad and Mumbai, covering about 500 kilometers in roughly two hours.

The project is considered a symbol of Japan-India cooperation, as it will use Japan's renowned shinkansen technology.

JR East aims to complete the E10 series carriages in the fall of 2027 at the earliest, with commercial operation starting in fiscal 2030.

In their meeting, Modi and Ishiba are expected to confirm plans to introduce the E10 series in the early 2030s, according to the sources.

Through the revised security declaration, the two sides are expected to agree on strengthening comprehensive cooperation in broader areas, including space and cybersecurity, the sources said.
 
 

A breeze carries murmurs and quiet laughter between the rows of bright green tea leaves that are growing in dappled shade as workers harvest the plants that are destined to become matcha.

The Kokaen tea farm in Toyota, Aichi Prefecture, is just one of the many across Japan that has benefited from the sudden surge in interest in powdered green tea, but the industry is now facing uncertainty caused by U.S. President Donald Trump's tariff salvos.

"Global demand for matcha, especially from the United States is extremely high. If the tariffs are imposed, it is likely to affect sales," said Yoshitaka Noba, the third-generation owner of Kokaen.

Founded by Noba's grandfather Takakichi in 1945, Kokaen is one of the few remaining tea farms in the region better known for hosting Toyota Motor Corp and its factories. Nishio, the neighboring city, is especially known for green tea.

Japanese green tea exports have surged in the past few years, marking a record 36.4 billion yen in 2024, more than triple the value of ten years earlier.

According to the Finance Ministry, the United States took 44.2 percent of those exports, significantly more than Germany which, at 9.2 percent, was second.

Production, however, has lagged behind demand. Some 75,200 tons were grown in 2023, down by more than 20 percent compared to 15 years ago, according to the Japanese Association of Tea Production.

Experts attribute the decrease to myriad reasons, including the country's rapidly declining population.

The Japanese government has been incentivizing farmers to switch from other tea varieties to tencha, a tea leaf typically ground to make matcha, as international demand soars.

While tencha production in 2023 grew to 4,176 tons, more than twice that of 2014, it nonetheless only makes up 5.6 percent of all aracha, or unprocessed tea.

The shift to tencha has been slow as investing in new machinery, including what is required to powder the leaves, can cost hundreds of millions of yen. The process itself is very labor intensive, according to Noba.

"Tea farmers may hesitate to turn to matcha production as it's difficult to ascertain whether this is a temporary fad or whether it will end up sticking around for longer," he said.

Tencha is usually harvested between April and May. Kokaen manages eight farms totaling 1.6 hectares, hiring people to pick leaves from one of its locations spanning less than a hectare, while the remaining farms are harvested using machinery.

"Our business relies heavily on what we produce in this one month," Noba said.

The global popularity has been a boon to the Japanese tea industry, thanks in large part to matcha being a rich source of nutrients, vitamins and amino acids.

"There was a growing interest in health during the coronavirus pandemic, and people turned to matcha as they had an impression of it as being beneficial," said Yukiko Motohara from the Japan Food Product Overseas Promotion Center -- part of the Japan External Trade Organization.

Its popularity has been supplemented by its use in sweets as well, Motohara said.

JFOODO, which specializes in promoting various Japanese foodstuffs including sake and miso, has thrown its weight behind Japanese tea since 2017.

While matcha has been mainly sold in luxury supermarkets in the United States, Motohara believes that its popularity will likely grow as it becomes more widely available.

However, despite the ever-increasing attention from abroad, businesses dependent on exports to the United States have been wary about the potential effects of tariffs on profits as uncertainty mars future decisions. Tea, for example, is currently exempt from import taxes.

In what he has labeled "reciprocal tariffs," Trump unleashed a baseline 10 percent duty for almost all nations in the world and additional, higher country-specific levies for about 60 major trading partners that have trade surpluses with the United States.

The Organization for Economic Cooperation and Development recently cut its global economic growth outlook for 2025.

The tariff hikes have been paused for 90 days until early July to allow for negotiations, with Japan having sent its envoy to Washington multiple times in a bid to reach an agreement.

"Tea is not a necessity, it is considered a luxury item and is therefore influenced by economic conditions. If the U.S. economy suddenly deteriorates, the value of what we produce may also suddenly drop," Noba said.

In order to maintain the ongoing popularity of matcha abroad, JFOODO's Motohara suggests that consumers should focus on the rich history and artisan skills behind producing high-quality Japanese green tea -- tariffs be damned.

Kokaen's Noba agrees, but also hopes the tariff situation can be resolved sooner rather than later.

"Matcha isn't produced in the United States, so those who want the tea will purchase it (from us) regardless of tariffs," Noba said.

"But it would be nice for the levies to be withdrawn, for the world to become one in which we are able to deliver our product as freely as possible to anyone who wants it."
 
 

Japan is heavily exposed to turmoil in the Middle East despite being far away and removed from the hostilities, and the crisis is coming at a time when Japan is vulnerable and in no position to absorb shocks that emanate from the conflict.

According to the Petroleum Association of Japan, about three-quarters of the country's crude oil imports are shipped via the Strait of Hormuz, a choke point between the Persian Gulf and the Gulf of Oman with Iran on one shore.

Iran, which is currently in a military conflict with Israel, has threatened to close the strategic passage.

“A large portion of crude oil and gas is transported through this strait, so any disruption would hinder energy procurement and cause prices to increase sharply," said Yuki Togano, a researcher at the Japan Research Institute.

The price of oil is already up about 10% since the conflict began on June 13 — when Israel started destroying Iran's nuclear capabilities — with Brent crude oil futures now trading at about $77 a barrel.

Tagano said that if the Strait of Hormuz is closed, the price could jump to $140 a barrel. Takahide Kiuchi, executive economist at Nomura Research Institute, wrote in a recent report that the price of crude could climb to around $120 a barrel.

"This time, Iran’s regime might possibly collapse. Blocking the Strait of Hormuz might anger China and Middle Eastern nations, but when facing a situation where the regime itself could collapse, it's natural to put every possible measure on the table,” Togano said.

According to a report by Zero Carbon Analytics, a research group, Japan is the most vulnerable of the large Asian economies to the disruption of petroleum shipments through the Strait of Hormuz due to its high reliance on Middle East oil.

Prime Minister Shigeru Ishiba said on Thursday that the government will implement additional measures from June 26 to prevent gasoline prices from rising above about ¥175 per liter. The average price on Monday was ¥171.2 per liter.

Togano said that although measures to contain price increases are important, Japan needs to strengthen policies, including those related to saving energy, to contain fundamental risks arising from reliance on oil imports from the Middle East.

Japan is already facing a number of significant economic challenges. The trade war with the United States is affecting exports and threatening auto sales, which are important to the Japanese economy.

Inflation is also a problem. It is high and squeezing households, which are struggling to make ends meet as wages fail to keep up with price increases. Rising food prices are particularly worrying.

Japan’s inflation in May was 3.5%, with the price of rice having more than doubled.

If the Middle East conflict continues to push up oil prices, the yen is expected to decline as dollar-buying must increase to pay for energy imports.
Even though the yen is traditionally seen as a safe-haven asset, the dollar seems to be attracting higher demand for those seeking a refuge from turmoil, Tsuyoshi Ueno, an economist at NLI Research Institute, wrote in a report on Thursday.

On Friday, the yen traded at ¥145.3 to the dollar, from about ¥143.5 when the conflict began.

Ueno points out that the yen weakened significantly after Russia invaded Ukraine in February 2022 and oil prices increased.

“If the heightened tensions in the Middle East continue for a long time and oil prices rise and remain high, it will likely become a major factor for the yen’s depreciation.”
 
 

Honda Motor Co President Toshihiro Mibe expressed his eagerness to collaborate with Nissan Motor Co and its alliance partner Mitsubishi Motors Corp during a general shareholders meeting on Thursday, after merger talks with Nissan collapsed earlier this year.

Asked about the likelihood of revisiting a merger with Nissan, which fell through due to disagreements over management structure, Mibe said it was not possible "for the time being."

Honda and Nissan, Japan's second- and third-largest automakers, as well as Mitsubishi Motors have carried on talks regarding a possible collaboration on the electrification of automobiles, among other areas. Honda and Nissan are also considering cooperation in the United States, in the face of U.S. President Donald Trump's aggressive tariff policies.

"We want to secure a leading competitive edge in the industry by maximizing the merits brought on by the collaboration," Mibe was quoted as saying, according to the exchanges at the meeting provided by Honda.

Honda and Nissan revealed in December plans to begin merger talks under a holding company, aiming to share the financial burden of developing electric vehicles and software to better compete with global rivals such as Tesla Inc. of the United States and China's BYD Co. But the talks broke down less than two months later.
 
 

U.S. President Donald Trump's bid to attract investment threatens to undermine the appetite for corporate spending in an ironic twist, with the 18-month saga over Nippon Steel Corp's buyout of United States Steel Corp showing the growing vulnerability of businesses in the U.S. market, according to analysts.

The U.S. administration's earlier blocking of the $14.1 billion takeover deal was clearly driven by political motives and corporate executives will no longer be able to make decisions regarding their U.S. operations based only business criteria, they said.

The wrangling in the high-profile case could lead global companies to think twice about making sizeable investments and acquisitions in the world's largest economy, with many moving to reduce their exposure to the U.S. market.

"I do think many companies are pausing investments and major capital expenditures, not only because of the Nippon-U.S. Steel deal but due to general uncertainty surrounding political and economic dynamics in Washington," said Zack Cooper, senior fellow at the American Enterprise Institute.

Trump had repeatedly rejected Nippon Steel's plan to take full control of U.S. Steel.

But Nippon Steel, the world's fourth-largest steel producer, and U.S. Steel, the 29th largest, said Wednesday following Trump's approval of the buyout plan that they had signed a national security agreement with the U.S. government and finalized the acquisition transaction.

Under the deal, the Japanese steelmaker is obliged to invest $11 billion by 2028 on bolstering the U.S. steelmaker's operations, far more than the previously planned $2.7 billion.

The U.S. government also obtained a golden share allowing it to veto key management decisions, such as when reducing investment, shedding production capacity in the United States or closing plants.

Nippon Steel CEO Eiji Hashimoto told a press conference on Thursday that his company had learned from a year and a half of negotiations with the U.S. government that a flexible management strategy is required.

The top executive said it had been believed that governments should not get involved in business deals.

"But now...governments are strengthening their involvement in economic and business matters through industrial policy," he said.

Hashimoto said while his company's acquisition of U.S. Steel should help the world's largest economy, trade levies will not revive its manufacturing sector.

"I believe President Trump came to the conclusion that it is necessary to utilize our power to revive the U.S. steel industry," Hashimoto said, adding the Japanese steelmaker aims to bolster its U.S. unit's overseas operations as well.

Nippon Steel has concluded a National Security Agreement with the U.S. government, pledging to invest around $11 billion by 2028 in the iconic but struggling company and keep its headquarters in Pittsburgh.

During the news conference, Hashimoto shrugged off the possibility that the security pact will hamper its U.S. business.

Trump's predecessor, Joe Biden, initially blocked the purchase of U.S. Steel on national security grounds, saying the manufacturing icon, based in Pittsburgh, Pennsylvania -- a key battleground state in the 2024 presidential election -- should be "American-owned and American-operated."

Trump also opposed the deal during the presidential race, saying the acquisition of a minority stake in U.S. Steel would not cause any issues, but foreign ownership of the company would not be good psychologically.

He ordered a new review of the deal by the Committee on Foreign Investment in the United States in April with a deadline for Trump to make a final decision initially set for June 5.

"Because predictability is insanely low right now in the United States, Japanese companies are going to cut back the percentage of their business in the country," said Keisuke Hanyuda, the chief executive of Owls Consulting Group.

While rising costs must be dealt with, "The last thing a business wants is to lose predictability," said Hanyuda, a former Japanese trade ministry official in charge of trade talks.

Nippon Steel is betting on firm demand for high-tensile strength steel in the U.S. market, capitalizing on its advanced production technology for high-end steel plates used in products such as electric vehicles.

The United States is one of three growth markets for the Japanese steelmaker, compensating for shrinking domestic demand.

Under Trump, the steel, aluminum, auto and semiconductor sectors have been targeted by specific tariffs driven by political pressures and companies in these industries should consider other markets for growth to hedge their risks, analysts say.

Earlier this month, Trump signed an order doubling the tariffs on steel and aluminum imports to 50 percent.

"I think Japanese companies will have a difficult time purchasing famous American companies in sectors that President Trump prioritizes, such as autos, steel, aluminum, and chipmaking," Cooper at the American Enterprise Institute said, though investment in other sectors may still be viable.

"But any Japanese company that is considering a major deal in the United States should develop a detailed political strategy before announcing a deal, lest they suffer similar roadblocks as Nippon Steel," he said.

The United States remains a lucrative market with high growth potential but some global companies are beginning to reduce their reliance on it after the tariffs imposed by Trump, Hanyuda said.

The European Union and the Association of Southeast Asian Nations, for example, have resumed economic partnership negotiations, while the EU is also looking at Japan, which is part of a trans-Pacific free trade pact that took effect in 2018 without the United States.
 
 

The government’s stockpiled rice can be sold under no-bid contracts to restaurant operators, ready-made meal providers and school and hospital food service businesses, announced Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi on Wednesday.

The businesses are in addition to existing retailers and rice specialist shops of all sizes.

Orders for the rice were to be accepted from 10 a.m. on Friday.
“I’d like to deal with the matter in a way that the stockpiled rice sold under no-bid contracts will reach as far and wide as possible,” Koizumi told reporters on Wednesday.

On June 10, the government decided to additionally release 100,000 tons each of rice harvested in 2020 and 2021 from its stockpile to sell under no-bid contracts.

The government began accepting orders for 120,000 tons of stockpiled rice on June 11. The government has not yet received orders for all the rice.

“It’s still not a situation that we can say [the orders] have suddenly increased by thousands of tons,” Koizumi said. “There is a need [for rice] from various food service businesses, so I suppose this additional release is an option to correspond to that need.”

Koizumi also announced a plan to conduct a survey on rice millers to grasp their rice milling results from 2022 to the present, as well as their spare capacity. The decision was made because of a slow rice distribution flow due to businesses unable to mill the stockpiled rice they purchased.

The survey will be conducted on rice millers with a capacity to mill 500 tons or more. The government will ask them to respond to the survey by next Wednesday.
 
 

The total amount of tax evasion in cases for which Japanese tax authorities filed criminal complaints in fiscal 2024 came to 8.23 billion yen, the National Tax Agency said Wednesday.

The amount fell by around 700 million yen from fiscal 2023, while the number of cases decreased by three to 98.

Japan's tax authorities are stepping up their crackdowns on people not declaring taxes, in addition to those engaging in tax evasion linked to consumption tax and international transactions.

In fiscal 2024, which ended in March this year, the number of criminal complaints on cases in which people were accused of illegally receiving consumption tax refunds reached 17, the highest in a decade. In one case, an alleged tax evader pretended to be an exporter of luxury watches.

According to the National Tax Agency, the number of cases for which taxation bureaus across the country launched investigations came to 151, down by three, while the total number of tax evasion cases including those for which authorities stopped short of filing criminal complaints stood at 150, down by one. Authorities filed criminal complaints for 65.3 pct of cases, down 1.6 pct.
 
 

The Agriculture, Forestry and Fisheries Ministry’s aim is to determine the causes of rice shortages and price hikes.

The agriculture ministry will survey about 70,000 rice-related businesses across Japan to determine the status of their sales and inventory, Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi said Tuesday.

The survey will be the first conducted under the staple food law since rice distribution was substantially liberalized in 2004. The ministry’s aim is to determine the causes of rice shortages and price hikes.

Rice inventory surveys have been conducted on large rice collectors and wholesalers, but the ministry will expand the range to cover a much wider scope.

It will ask the businesses involved to report on their collection of rice for distribution, purchases, sales and inventories as of the end of June.
“Why rice prices have skyrocketed is a matter of national concern.

It is extremely important for us at the ministry to find out the reasons, so that we can win the public’s trust in our agricultural policy,” Koizumi said at a press conference after a Cabinet meeting on Tuesday.

Businesses that provide take-away services, restaurants and food-related retailers are also planned to be part of the survey. The ministry will conduct hearings to compile the findings at the end of July.
 
 

Japan logged a 637.61 billion yen ($4.38 billion) trade deficit in May, with auto-related shipments to the United States plunging, possibly affected by higher tariffs imposed by President Donald Trump, government data showed Wednesday.

The trade balance remained in the red for the second straight month, as overall exports fell 1.7 percent from a year earlier to 8.13 trillion yen, marking the first drop in eight months, weighed down by an 11.1 percent fall in shipments to the United States.

Imports shed 7.7 percent to 8.77 trillion yen, down for the second straight month, reflecting lower prices of crude oil from the United Arab Emirates and coal from Australia, the Finance Ministry said in a preliminary report.

By region, Japan had a 451.7 billion yen trade surplus with the United States, down 4.7 percent from the previous year, as exports dropped for the second consecutive month to 1.51 trillion yen, while imports fell 13.5 percent to 1.06 trillion yen.

U.S.-bound shipments of automobiles tumbled 24.7 percent and those of auto parts plunged 19.0 percent, both in value terms. In volume, shipments of automobiles fell 3.9 percent, showing that export unit prices declined by over 20 percent.

The Trump administration imposed a 25 percent tariff on imported vehicles in April as well as on auto parts in May, in a move set to deal a blow to Japan's mainstay auto sector, which sees the United States as a key market.

A ministry official said the latest data could have reflected moves by Japanese automakers to increase shipments of lower-priced models or cut export prices of their products in response to heavier tariffs.

"I believe the effects of the tariffs are gradually emerging, as car exports also declined in volume terms," said Takafumi Fujita, an economist at the Meiji Yasuda Research Institute.

Fujita said auto exports are likely to remain weak due to the uncertain outlook of Japan-U.S. tariff negotiations and they could negatively affect the Japanese economy, given the significant role of the industry.

With China, Japan remained in the red for the 50th consecutive month, logging a deficit of 624.87 billion yen in the reporting month, expanding 17.2 percent from the year before. Exports to the country shed 8.8 percent to 1.44 trillion yen and imports fell 2.2 percent to 2.07 trillion yen.

Japan's trade surplus with the rest of Asia, including China, ballooned more than 12-fold to 313.35 billion yen.

A deficit of 308.9 billion yen was recorded with the European Union, remaining in the red for 16th consecutive month.