PM ISHIBA SAYS HE INTENDS TO STAY ON
Japanese Prime Minister Ishiba Shigeru says he is not stepping down. Some media reports had claimed that he would resign after the Liberal Democratic Party's set back in Sunday's upper house election. Ishiba spoke to reporters at LDP headquarters on Wednesday. He was there to meet with three former prime ministers, Aso Taro, Suga Yoshihide, and his immediate predecessor, Kishida Fumio.We shared a strong sense of crisis over the current situation and agreed that we must avoid division within the party at any cost. There were several conversations which the LDP secretary-general will tell you about. But we did not discuss my political future or the possibility of resigning at all.
The Prime Minister said he would stay on to tackle what he called important policy issues including wrapping up the newly announced Japan US tariff agreement.
And to tell us more about that deal, let's bring in Ramin Mellegard from the BizDesk, Ramin.
Thank you very much indeed.
TRUMP ANNOUNCES 'MASSIVE' TRADE DEAL WITH JAPAN
Now, Japan and the United States say they've reached an agreement after months of trade negotiations. US President Donald Trump broke the announcement, calling it a massive deal for both countries. Trump posted on social media that 15% reciprocal tariffs will be placed on Japanese imports to the US That's down from 25% tariffs, which he had threatened would take effect from August 1st. Trump says Tokyo agreed to trade goods like cars and trucks, rice and certain other agriculture products and other things, and invest $550 billion into the US. He claims the deal will create hundreds of thousands of jobs. Trump spoke about the deal at an event shortly after his announcement. It's a great deal for everybody. I always say it has to be great for everybody. It's a great deal. A lot different from the deals in the past, I can tell you that. But we're doing really well as a country. We're strong. We have a lot of money flowing in. It comes after Japan's chief tariff negotiator Akazawa Ryose arrived in Washington for the eighth round of talks this week. His team was racing to strike a deal before the August 1st deadline.ISHIBA HAILS US TRADE DEAL
And Japan's Prime Minister Ichiba Shigedo confirmed news of the trade deal.Japan's tariff rate, which was supposed to be raised to 25%, has been kept to 15%. This is the lowest figure ever negotiated by a country that has a trade surplus with the United States, and Japan won't be treated less favorably than other countries if tariffs are imposed in the future. On goods important for economic security, such as semiconductors and medicines.
Ishima said the deal does not include tariff reductions on the Japanese side, including for agricultural products. He also said the deal was made possible because of Japan's push to prioritize investment over tariffs.
JAPAN-US DEAL IMPACTS AUTOS AND AGRICULTURAL IMPORTS
And as we mentioned, the deal is said to have big impacts on how Japan and the US trade vehicles and agricultural goods.The auto industry had been a major sticking point between both countries' trade teams. Japanese government sources say extra US tariffs on automobiles from this country will be cut in half, from 25% to 12 and a half. That's in addition to Washington's existing 2 1/2% levy, so all totaled Japanese auto imports will be tariffed at 15%. Both sides also agreed to raise how much rice Japan imports from the US. Tokyo says it will do so by expanding the ratio of American rice shipped to Japan tariff free under what's called the Minimum Access Framework. Japan already imports A mandatory amount of the staple grain, roughly 770,000 tons, annually from its trade partners without any tariffs. Now, one notable issue has been left out of this trade deal. Government sources say an existing 50% tariff on steel products and aluminum will stay in place.
WINDING ROAD TO JAPAN-US TRADE DEAL
Now, the agreement comes after months of back and forth between the two countries. Here's a look at the winding road the negotiations have taken.Japan first sent Economic Revitalization Minister Akazawa Ryosei to the US in April.
He's the chief tariff negotiator for the Ishiba administration. Akazawa met with Trump ahead of the first round of talks. The president described the visit as a great honor in a social media post, calling it big progress.
Akazawa continued to make trips to Washington over the weeks, with automobile tariffs a key focus.
We have to work quickly, but also take our time.
The Trump administration wants to bring more auto production back to the US and create jobs. The Japanese government proposed a system of phased reductions in auto tariffs. They would be tied to manufacturers' contributions to the US auto industry, including job creation. Ishiba met with Trump at the G7 summit in Canada in mid-June, but they failed to reach a package agreement.
There are some points we have yet to agree on, so we have not reached a package agreement.
But in late June, Trump started complaining about Japan's stance.
And yet we take millions and millions of their cars into the United States. It's not fair.
On his seventh visit to Washington, Akazawa didn't meet his opposite number in negotiations. US Treasury Secretary Scott Bessant.
Trump warned in a letter to Ishiba on July 7 that he'd slap a 25% tariff on imported Japanese goods from August 1 if Tokyo didn't reach a trade deal.
He repeated his claim that Japan wasn't doing enough to open its markets to US products.
Japan, as you know, and and we're very close to Japan, but they sell us millions and millions of cars a year. We sell them no cars because they won't accept our cars and they won't accept much of our agriculture either.
Last week, both Ishiba and Akazawa met with Bessent , who was visiting Japan.
Ishiba asked him to continue negotiations to reach a mutually beneficial trade agreement. Ishiba vowed to stay in office and continue tariff negotiations after his ruling coalition lost its majority in Sunday's upper house election. Akazawa flew to Washington again on Monday. The first sign of a breakthrough came with the news that Akazawa had visited the White House on Tuesday.
NIKKEI SURGES TO 1-YEAR HIGH ON JAPAN-US TRADE DEAL
And Tokyo's benchmark stock index rose to the highest level in a year after US President Donald Trump announced a trade agreement had been reached with Japan.The Nikkei 225 surged 3.5% to end Wednesday's session at 41,171. The index regained the 41,000 mark for the first time since July last year. At one stage, it was up more than 1,500 points, or 3.9%. Investors bought a wide range of shares right from the opening on the view the trade deal removes some of the uncertainty over Japan's economic outlook. Now automakers LED gains as the agreement halves the extra tariff on imported Japanese cars to 12 1/2% from the current 25%.
Meanwhile, the yield on the benchmark 10-year Japanese government bond briefly rose to 1.6%, the highest level in about 17 years. Market sources say the trade deal eased uncertainty over tariffs and triggered speculation that the Bank of Japan may be more likely to raise interest rates again.
And Minori has more on the trade deal with our business correspondent.
DONE DEAL?: ANALYSIS OF JAPAN-US TRADE AGREEMENT
Yes, thanks, Ramin. I did speak earlier with NHK World senior business correspondent Esaki Daisuke. Is this a good deal for Japan?Well, the Japanese government's assessment is that, yes, it is.
We heard Ishiba earlier paint a very positive picture. He says Japan has been able to negotiate the lowest tariff rate among countries with a US trade surplus. As we mentioned, Japanese imports will face a 15 percent levy.
For example, other Asian countries, Indonesia and the Philippines, both secured a 19% tariff, while Vietnam's rate will be at 20%. Ishiba also said he believes this is a critical agreement for Japanese economic security. Take a listen.
Japanese companies will invest in the United States across key sectors vital to economic security, such as semiconductors, medicines, steel, shipbuilding, critical minerals, aviation, energy, cars and AI and quantum technology. We agreed that Japan and the United States will work closely together to build a robust supply chain that benefits both countries.
We should mention that this marks an about faith for Trump. He had been pressuring Japan, insisting there was no room for negotiation on the agriculture sectors. Japan's willingness to give the US craw makers and rice growers more access to its market helped clear the way.But are there any potential downsides, especially for Japan's economy?
Some economists suggest there could be. One Japanese economist says it could trim Japan's GDP by 0.55 percent over the coming year. Nomura Research Institute executive economist Kiyuichi Takahides adds that economic impact could be granted.
The Trump administration made a big compromise by lowering not just the reciprocal tariff, but also the auto levy. We had estimated that Japan's GDP will shrink. by 0.85% if the tariffs were raised to 25%. However, the 15% auto levy will have some negative impact on the industry and the overall economy.
Kyuchi also told us that business risks will remain high if the US continues to stick to an American-first policy. Japanese companies may throw their investment pace in the US or forecast elsewhere, such as Europe.Another economist gave this deal high marks. I spoke with Mizuho Securities Chief Economist Kobayashi Shunsuke. He says Japanese automakers will have an advantage in the US market over some non-US rivals now that auto tariffs are set to be lower. We still have to see how this all shakes out.
Trump has a history of being unpredictable. Just because he says a deal has been made doesn't mean that's the end of the end of the story.
DANGEROUS, RECORD-HIGH HEAT SCORCHES PARTS OF JAPAN
Temperatures across Japan on Wednesday may reach record highs, posing a danger to people in eastern Hokkaido, including areas near the Sea of Okhotsk. The Japan Meteorological Agency says the heat wave is expected to intensify across the country while a high pressure system blankets the archipelago. The mercury has topped 38 degrees Celsius in several places, including in the town of Bihoro in Hokkaido. Similar readings were seen in the prefectures of Fukushima and Kyoto. In Hokkaido's Shari Town, a woman in her 90s died after suffering from suspected heat stroke. Heat stroke alerts have been issued across Japan, from Hokkaido in the north to Okinawa Prefecture in the south. High temperatures during the day and cold air above are expected to cause extremely unstable atmospheric conditions. The weather may change suddenly in inland areas on Wednesday afternoon, possibly causing heavy rainfall.NORTHERN JAPAN BAKES UNDER INTENSE HEAT
kitami was one of the hottest cities in Hokkaido. On Wednesday, we sent our Tokudai Ryosuke there to look into the impacts of that designation I spoke with him earlier.It's 36 degrees Celsius right now, and it definitely feels like it. I can't stop sweating. I used to live and report here until two years ago. I don't remember many hot days like this one. We would normally see a lot of children cooling off here. More than 10 played in the water on Tuesday, but we've barely seen anyone all day. I spoke with a couple of kindergarten teachers who came to see if they could bring their students here next month.
It is meltingly hot. There is no shade over the water, so I will have to get my supervisor's approval before my kids can play here.
When I get home, I'm turning on the AC and the fan and eating ice cream.
I think the temperature was above 30 degrees Celsius all last week. This water is not cold at all. It's more like a lukewarm hot spring.
You have to realize that people here are used to a much different situation. Kitami City cools down to nearly minus 20 degrees Celsius in the winter. And that season brings a notable attraction to the region, drift ice. It's a big tourist draw. I should also mention that Kitami is known for being the curling capital of Japan.
Right, curling, drift ice. That's quite the contrast compared to the conditions you're describing now. Tell us more about those and their impacts.
Well, The biggest concern, of course, is around health. Earlier, we heard about that death, but on Tuesday, at least four people in the region also reported symptoms of heat stroke, and almost 50 schools in Hokkaido have been temporarily closed.
The heat is also causing problems in the prefecture's key industry, agriculture, wheat,Potatoes and beets are not growing as large as normal and there has been little rain this year. The weather is forecast to cool down a bit next week, but remember the summer is still far from over.
DANGEROUS, RECORD-HIGH HEAT SCORCHES PARTS OF JAPAN
And now we're joined by our meteorologist Tsietse Monare to talk more about this subject. So Tsietse, it's very rare for northern Japan to reach this level of heat. How do we get here?Yeah, it is quite rare. And you can see on the image here, we've got some really intense and shocking numbers in terms of temperatures, all-time records being broken. Well, normally we have warm air coming in from northern China and it spreads all the way into the western side of Hokkaido, and that is absolutely normal and acceptable. And that is the first reason why we have these extremely hot temperatures. The second reason is when that warm air combines with a phenomenon called the Fern effect, then it becomes a little bit difficult for people to handle. The Fern effect is when we have these strong dry winds coming in across the West and then it meets a lot of these mountains here, including the Teshio and Kitami mountains in the region and as it flows down. It affects people on the eastern side, leading to temperatures rising significantly. Places such as Obihiro sees intense temperatures and it creates these long term heat waves or heat domes.
Well, how long are these conditions expected to last?
I do not have a straightforward answer for that one, but it looks like. This system here, it's called the Tibetan High on the far western side and then across the east we see that Pacific High. These two pressures looks like they're going to remain solid and they're going to stay there in place for at least a few days and that will intensify. The heat will go up. I mentioned a place called Obihiro.
They might see temperatures going as high as 40 degrees Celsius, but shortly after that they will loosen up quite a little bit and then they would lead to a slightly cooler conditions, but it's still not going to be optimum. It's not going to be what we all expect and what we are used to. And unfortunately over the 100, the last 100 years or so, you can see these summer temperature anomalies. You can see from the 1920 fours all the way to present time, temperatures have been steadily increasing and very close to you there.
You can see two circles at the top there.
That's sadly 2023 and 2024 and unfortunately 2025 is going to be the same with these temperatures. staying very high up.
Right. Well, thank you, Tessie, for sharing your insight on these extreme weather conditions. Thank you for having me.
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JAPAN'S AIR SELF-DEFENSE FORCE JOINS HUGE US-LED EXERCISE
Japan's Air Self-Defense Force is taking part in a US-led exercise in the Indo-Pacific for the first time. It comes amid a rise in China's activities in the region. The US Air Force is conducting the exercise called Resolute Force Pacific with other nations from July 10 through August 8th. On Tuesday, Japanese media were allowed to watch some of the drills at the US military's Yokota Air Base in Tokyo.AC-130 transport plane took off as part of exercises aimed at strengthening American frontline deployment capabilities. This comes after two Chinese aircraft carriers were spotted in the Pacific for the first time last month. The Liaoning and the Shandong entered the area simultaneously. At the time, a fighter jet from the Shandong flew close to a patrol plane from Japan's Maritime Self-Defense Force. The incident prompted the defense ministry to express serious concerns to Beijing. The commander of US forces in Japan, Lieutenant General Stephen Jost, stressed the importance of drills in which the US and Japan work together. He underlined the need for strong alliances to effectively meet the complex security challenges facing the Indo-Pacific region.
HIGHER COCOA PRICES SPUR SWEET INNOVATION
Chocolate makers in Japan are facing tough times amid rising costs.Cocoa prices have surged following a poor harvest for the crop in West Africa.
The higher costs have sent chocolate prices up about 40% in June compared to a year ago. The situation is seeing firms bring new innovation to sweets.
One way to cut the higher cost of cocoa is to go beyond the bean. A promising alternative is burdock, a root vegetable common in Japanese cuisine.
This company noticed roasted burdock and chocolate share similar aromatic compounds. It was able to use burdock to recreate the texture of chocolate and added sugar and other ingredients to match the taste. After a lot of trial and error, a new confectionery was born. It allows the company to avoid fluctuations in the price of cocoa.
The firm says the product is high in fiber. It's selling it at convenience stores, targeting budget and health-conscious consumers.
The product doesn't use cocoa, but it's similar to chocolate. We'd also like drugstores and supermarkets to carry it as a new kind of product.
A major Japanese confectionery maker has also found an innovative way to keep prices steady. In Japan, chocolate is labeled based on its cocoa content. Products that are at least 35% from cocoa beans are called chocolate. Those with a minimum of 15% are categorized as semi-chocolate. The company switched the category for about a third of its chocolate items, but this also reduced the fat. To keep the taste, it's developed the new vegetable-derived fat from sunflower and palm oil. The bowl on the left has fat from cocoa. The bowl on the right uses the new ingredient.
The firm's researchers were able to make it soften at body temperature, keeping that melt-in-your-mouth quality.
That's really important for chocolate. We've been able to keep that experience while holding costs down. We'll continue pursuing both taste and affordability.
The global price of cocoa has more than tripled in the last three years and is expected to remain high. It could mean more chocolate innovation is on the way.
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WEATHER
Time now for a check on the weather with our meteorologist, Jonathan Oh. So, Jonathan, I'm beginning to sound like a broken record, talking over and over again about this heat in Japan, but we really are breaking records. Will we cool off anytime soon?It's going to take some time. The only place that might see a little bit of reprieve from the current heat is in Sapporo later toward the weekend. We go from 36 on Thursday, that's still hot. Down to 33 to 31 by Saturday with some rain coming into the picture.
So that should help. But I mean Tokyo, Osaka, Fukuoka will be in the mid 30s. We'll be under partly sunny to partly cloudy skies to mostly sunny skies over the next few days, which means take those precautions, stay indoors, get an air conditioned area, stay hydrated because this is definitely going to be a story that we will talk about for the next several days.
Meanwhile, down to the southwestern portions of Japan in Okinawa, you're talking about a very different story because of Francisco.
Here's look some of the video to give you an idea of the situation on the ground.
Yeah, that's some wild wind right there as Francisco is south of Okinawa, but the fierce rain and strong gusts are swinging through the area. Naha already reporting gusts of over 60 kilometers per hour by Wednesday afternoon, with the storm expected to make its closest approach to the islands late Thursday into early Friday, up to 150 millimeters of rain in 24 hours. And wind gusts of up to 90 kilometers per hour are possible through Friday. It's not just Okinawa that's been the impact of this. You see this huge trail of wind coloration here across the Philippines. Yeah, we're talking about enhancement of the monsoonal rainfall. So flooding is going to continue to be an issue across the area. So thunderstorms is a Manila rain into Taipei as well. And we're talking about highs into 30s from Shanghai to Beijing for the day on Thursday.
Stay safe wherever you are.
♫～ 3-DAY FORECAST ～♫
And that's all we have for this edition of NHK Newsline. We'll have more for you soon. Thanks for watching.
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