Business
Threatened by Trump tariffs, Japan walks a delicate tightrope between US and China
Finance Minister Katsunobu Kato arrives at the prime minister’s office on Nov 11, 2024, in Tokyo. (AP)
WASHINGTON, May 6, (AP): Just as Japan’s top trade negotiator traveled to Washington for another round of tariff talks last week, a bipartisan delegation bearing the name of “Japan-China Friendship” wrapped up a visit to Beijing. A week earlier, the head of the junior party in Japan’s ruling coalition was in Beijing delivering a letter from Japanese Prime Minister Shigeru Ishiba addressed to Chinese President Xi Jinping.
Details of the letter are unknown, but the two sides discussed U.S. tariffs in addition to bilateral issues. Among all US allies being wooed by Beijing in its tariff stare-down with Washington, Japan stands out. It is a peculiar case not only for its staunch commitment to its alliance with the United States but also for its complicated and uneasy history with the neighboring Asian giant – particularly the war history from the 20th century that still casts a shadow over the politics of today. “On one hand, they are neighbors and they are important economic partners.
There’s a lot that connects Japan and China,” said Matthew Goodman, director of the Greenberg Center for Geoeconomics at the Council on Foreign Relations. “But on the other hand, I think there are limits to how far they’re going to lean into China.” While Japan won’t walk away from its alliance with the United States, the linchpin of the Asian country’s diplomacy and security policies, “it’s also true that the tariffs and uncertainty that Trump has created for Japan is really shaking things up in Tokyo,” Goodman said.
Last month, President Donald Trump announced a 24% tariff on Japanese goods in a sweeping plan to levy duties on about 90 countries. The White House has since paused the tariffs but a 10% baseline duty on all countries except China, allowing time for negotiations. Still, Trump’s 25% tax on aluminum, steel and auto exports have gone into effect for Japan.
The tariff moves, as well as Trump’s “America First” agenda, have cast doubts among the Japanese if the United States is still a dependable ally, while China is rallying support from tariff-threatened countries – including Japan. When Tetsuo Saito led Japan’s Komeito Party delegation to Beijing in late April, China hinted at difficulty in its tariff dispute with the United States, signaling its willingness to improve ties with Tokyo.
An unnamed senior Chinese official said his country was “in trouble” when discussing Trump’s 145% tariff on Chinese products, according to Japanese reports. Saito’s visit was soon followed by that of the bipartisan delegation of Japan-China Friendship Parliamentarians’ Union. Zhao Leji, Beijing’s top legislator, told the delegation that China’s National People’s Congress would be “willing to carry out various forms of dialogue and exchanges.”
Jaza gas field yields record vertical well output, boosting Kuwait’s energy prospects.
KUWAIT CITY, Oct. 14: Kuwait Oil Company (KOC), a subsidiary of Kuwait Petroleum Corporation (KPC), announced a significant new natural gas discovery in the Jaza offshore field, marking a historic milestone for the country’s offshore energy sector. The discovery recorded the highest production rate from a vertical well in Kuwait’s history, drawing from the Minagish formation.
During a meeting at Bayan Palace on Monday, His Highness the Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah received Minister of Oil and KPC Chairman Dr. Tareq Sulaiman Al-Roumi, KPC CEO Sheikh Nawaf Saud Al-Nasser Al-Sabah, and KOC CEO Ahmad Jaber Al-Aidan. The delegation briefed His Highness the Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah on the new offshore find, which underscores Kuwait’s expanding hydrocarbon resources and offshore exploration capabilities.
Initial tests from the Jaza-1 well demonstrated exceptional production exceeding 29 million standard cubic feet of gas per day and over 5,000 barrels of condensate daily. Notably low carbon dioxide levels characterize the reservoir and are free from hydrogen sulfide and associated water, distinguishing it as an environmentally and technically rare discovery that lowers processing costs and accelerates integration into Kuwait’s domestic energy network.
The preliminary field area spans approximately 40 square kilometers, with estimated reserves of about 1 trillion cubic feet of gas and over 120 million barrels of condensate, equivalent to roughly 350 million barrels of oil. These figures are subject to increase with further exploration of adjacent reservoirs.
Dr. Tareq Al-Roumi highlighted that the discovery represents a strategic milestone aligned with KPC and KOC’s Vision 2040 to enhance national energy security and increase production capacity. He noted ongoing efforts to expedite the development of this and other offshore fields, which are expected to drive economic growth and create employment opportunities for Kuwaiti nationals.
Sheikh Nawaf Saud Al-Nasser Al-Sabah expressed pride in the achievement, emphasizing the technical expertise and professionalism of Kuwaiti teams operating in unprecedented offshore territories. He also noted that these discoveries affirm the high environmental quality of Kuwait’s petroleum, reflecting the country’s commitment to a sustainable energy future with low emissions.
Ahmad Al-Aidan praised the dedication and innovation of KOC’s workforce, stating that these accomplishments result from teamwork and excellence, and reaffirmed the company’s commitment to advancing development and industry leadership.
The Jaza discovery builds on a series of recent offshore successes, including the Al-Nokhatha field, discovered in July 2024, and the Al-Julai’ah field, discovered in January 2025. Together, these findings demonstrate Kuwait’s growing offshore exploration capabilities as the country seeks to boost non-associated gas production and reduce dependence on LNG imports during the summer months.
Kuwait has been reopening its offshore frontier in recent years as part of a broader strategy to increase energy self-sufficiency and optimize crude exports. With current oil production capacity reaching 3.2 million barrels per day—the highest in over a decade—Kuwait is positioned to leverage these new gas discoveries to diversify fuel sources for power generation and petrochemical feedstocks.
KOC confirmed that the initial estimates for Jaza are preliminary and may rise with ongoing appraisal of nearby prospects, signaling promising potential for Kuwait’s offshore energy sector going forward.
Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between US dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea on Oct 14. (AP)
TOKYO, Oct 14, (AP): Asian shares were trading mixed on Tuesday after a rally on Wall Street spurred by U.S. President Donald Trump’s reassurances over relations with China. Japan’s benchmark Nikkei 225 slipped 1.4% to 47,419.87, as trading resumed following a national holiday Monday. In Hong Kong, the Hang Seng lost 0.4% to 25,788.44, while the Shanghai Composite edged up 0.2% to 3,897.56. “Don’t worry about China,” Trump said on his social media platform Sunday.
He also said that China’s leader, Xi Jinping, “doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!” On Friday, the S&P 500 tumbled to its worst drop since April after he accused China of ” a moral disgrace in dealing with other Nations.” He also threatened much higher tariffs on Chinese goods.
Still, the status of trade talks between the two biggest economies remains unclear. Despite harsh rhetoric and fresh retaliatory moves on tariffs and export controls, Trump said he still may meet with Chinese leader Xi Jinping later this month on the sidelines of a regional summit. Australia’s S&P/ASX 200 edged 0.1% lower to 8,876.20. South Korea’s Kospi gained 0.6% to 3,605.10. The S&P 500 jumped 1.6% in its best day since May, closing at 6,654.72.
It recovered just over half its drop from Friday. The Dow Jones Industrial Average climbed 1.3% to 46,067.68, and the Nasdaq composite leaped 2.2% to 22,694.61. The down-and-up moves for the market echoed its manic swings during April, when Trump shocked investors with his “Liberation Day” announcement of worldwide tariffs.
He eventually relented on many to give time to negotiate trade deals. “After the sharp lurch in US equities on Friday – the worst since the “Liberation Day” tariff shock – markets have delivered a relief rebound – arguably regaining confidence even,” Mizuho Bank said in a commentary. Trump’s wavering on tariffs has helped stocks soar since April.
So have expectations for several cuts to interest rates by the Federal Reserve to help the economy. Critics say the market now looks too expensive now after prices rose much faster than corporate profits. Worries are particularly high about companies in the artificial-intelligence industry, where pessimists hear echoes of the 2000 dot-com bubble that imploded.
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