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In a bid to escape financial woes, French games giant Ubisoft said Thursday it was creating a new subsidiary around its most popular franchises such as “Assassin’s Creed” in partnership with China’s Tencent.The new unit, valued at around four billion euros ($4.3 billion), will be 25-percent controlled by Tencent, which will stump up 1.16 billion euros of new investment in exchange.Alongside “Assassin’s Creed”, the subsidiary will bring together “Far Cry” and “Tom Clancy’s Rainbow Six” — among the most popular long-running names in Ubisoft’s roster of game universes.Ubisoft appears to be making the most of last week’s successful launch of the latest “Assassin’s Creed” instalment, “Shadows”, on which much of its future was riding.Conditions for the Tencent deal include a bar on the French company losing its majority in the subsidiary for its first two years.Tencent cannot increase its stake for the next five years — unless Ubisoft loses its majority in the mean time.Chief executive Yves Guillemot called the step a “new chapter in (Ubisoft’s) history”.Last year brought a string of woes for Ubisoft, with several disappointing releases for would-be blockbuster games and a slump in its stock price.Spinning up the new subsidiary — whose name has not yet been announced — by the end of the year means the company is “crystallising the value of our assets, strengthening our balance sheet, and creating the best conditions for these franchises’ long-term growth and success,” Guillemot said.The deal also sees Tencent assert its hold on Ubisoft more strongly after climbing aboard in 2022.The Chinese firm holds almost 10 percent of the group’s stock — a threshold it is not allowed to cross before 2030 — while the founding Guillemot family owns around 15 percent.- Breaking the streak -Earlier this year, Ubisoft had said that it was “actively exploring various strategic and capitalistic options”.Finance chief Frederick Duquet said Thursday that “we received many expressions of interest that turned into several non-binding offers for different options”.In the end, directors opted to create the subsidiary as this “allowed Ubisoft to maintain control of its key assets, with a view to creating very large brands worth multiple billions in the coming years,” Duquet added.Ubisoft plans to make further announcements on changes to the group at a later stage.The company’s market capitalisation stood at 1.7 billion euros by close of trading in Paris Thursday — or less than half the valuation of the new subsidiary.Teams working on the three major franchises will be brought together in the new France-based unit, especially Ubisoft’s Montreal studios — one of the largest in the company.In total, the publisher employs around 18,000 people worldwide, 4,000 of them in France.”Assassin’s Creed Shadows” has pulled in three million players since its March 20 release, breaking a streak of disappointing launches for Ubisoft.The group will nevertheless push ahead with a cost-cutting plan drawn up in early 2023, under which it has already closed studios outside France and shed 2,000 jobs.Ubisoft’s troubles reflect wider doldrums in the video games sector over the past two years.

World powers on Thursday blasted US President Donald Trump’s steep tariffs on imported vehicles and parts, vowing retaliation as trade tensions intensify and price hikes appear on the horizon.Major car exporter Germany urged a firm response from the European Union, while Japan said it “will consider all options.”The 25 percent US duties take effect starting 12:01 am Washington time (0401 GMT) on April 3 and impact foreign-made cars, light trucks and vehicle parts.Experts warn of higher vehicle costs, and Italian carmaker Ferrari said it would raise prices on many models sold to the United States by up to 10 percent from next week.Global stock markets plummeted with automakers like Toyota, Hyundai and Mercedes leading the plunge. In New York, shares in General Motors tumbled with Ford and Stellantis also declining.French Finance Minister Eric Lombard said the only solution for the EU is to “raise tariffs on American products in response.”Canadian Prime Minister Mark Carney said he convened a meeting to discuss trade options, while Mexico’s Economy Minister Marcelo Ebrard seeks “preferential treatment” for his country.But Trump ramped up his threats overnight, saying on social media that Canada and the EU could face “far larger” tariffs if they worked together “to do economic harm to the USA.”- Price surge -JPMorgan analysts estimate the tariffs on autos and parts could cause a $4,000 to $5,300 increase in average auto prices.It said 82 percent of Ford’s US sales are produced domestically, with the corresponding figures for Stellantis at 71 percent and General Motors at 53 percent.The American Automotive Policy Council representing the three automakers warned that the tariffs must be implemented in a way that “avoids raising prices for consumers” and preserves the industry’s competitiveness.”The steep and broad-based tariffs are likely to cause supply chain disruptions globally,” JPMorgan said in a note.Canadian Vehicle Manufacturers’ Association president Brian Kingston said the levies would bring higher costs for producers and consumers, alongside “a less competitive industry.”While Trump invoked emergency economic powers for some earlier tariffs, his auto levies build on a government investigation completed in 2019.- ‘Cheaters’ -About one in two cars sold in the United States are manufactured in the country. Among imports, about half come from Mexico and Canada, with Japan, South Korea and Germany also major suppliers.Of the US-made cars, their average domestic content is likely around 40 percent, the White House said.In a briefing Wednesday, Trump’s senior counselor Peter Navarro blasted “foreign trade cheaters” who he said turned the US manufacturing sector into a “lower wage assembly operation for foreign parts.”He took aim at Germany and Japan for reserving construction of higher-value parts to their countries.Since returning to the presidency, Trump has imposed tariffs on imports from major trading partners Canada, Mexico and China — alongside a 25 percent duty on steel and aluminum.The latest levies add to those already in place for autos.But the White House said that vehicles entering under the US-Mexico-Canada Agreement (USMCA) can qualify for a lower rate depending on their American content.USMCA-compliant auto parts will remain tariff-free as officials establish a process to target their non-US content.Mexican President Claudia Sheinbaum said tariffs were contrary to the North American trade deal, but her country would wait until early April before responding.- ‘Devastating impact’ -Uncertainty over Trump’s trade plans and worries they could trigger a downturn have roiled financial markets, with consumer confidence also slipping.Trump has defended levies as a way to raise government revenue and revitalize US industry.Targeting imported cars could strain ties with Washington’s allies, however.”Imposing 25 percent tariffs on imported cars will have a devastating impact on many of our close trading partners,” said Wendy Cutler, vice president at the Asia Society Policy Institute and a former US trade negotiator.Besides automobiles, Trump is eyeing other sector-specific tariffs, including on pharmaceuticals, semiconductors and lumber.Trump has promised a “Liberation Day” on April 2, when he is set to unveil reciprocal levies, tailored to different trading partners, to address practices that his government deems unfair.

Automakers were battered Thursday and stock markets fell on both sides of the Atlantic after US President Donald Trump announced painful tariffs on imported vehicles and parts as he presses hardball trade policies many fear will spark a recession.On Wall Street, the Dow, the tech-heavy Nasdaq and the broader-based S&P 500 were all around half of one percent in the red more than two hours into trading, with General Motors giving up almost seven percent while Ford’s dip was just shy of three percent.In Tokyo, Toyota — the world’s top-selling carmaker — fell two percent, Honda shed 2.5 percent, Nissan was off 1.7 percent and Mazda dived six percent.Seoul-listed Hyundai gave up more than four percent.Among European auto firms, Volkswagen shed 1.3 percent, Porsche lost 2.6 percent, Mercedes lost 2.7 percent and BMW fell 2.5 percent, helping to push the Frankfurt DAX index down 0.7 percent.Jeep maker Stellantis lost more than four percent.  In Mumbai, India’s Tata Motors, which exports Jaguars and Land Rovers to the United States, lost more than five percent, leading analysts to speculate on where markets may be headed. “The trade war has escalated, and unsurprisingly, German carmakers are leading the declines or are among the biggest decliners today,” said StoneX Group analyst Fawad Razaqzada.”While investors see a fair chance for successful negotiations between the European Union and the US in the coming weeks, many prefer to wait for these discussions rather than speculate in advance,” suggested Jochen Stanzl, chief market analysts with CMC Markets.”Ultimately, these actions could follow familiar patterns: threats issued first, followed by negotiations, leading to compromises that the US president can proudly present,” said Stanzl.”Recent glee over the notion that Trump wouldn’t impose sector specific tariffs… (in early April) have been entirely undermined by the fact that the president has instead opted to start announcing such measures ahead of that date,” noted Joshua Mahony, analyst at Scope Markets.There had been previous indications that levies lined up for the president’s so-called “Liberation Day” on April 2 would be less severe than feared.However, the White House’s habit of alternating between tough talk and leniency has fanned uncertainty, and the latest announcement did little to soothe nerves.”What we’re going to be doing is a 25 percent tariff on all cars that are not made in the United States,” Trump said as he signed an order in the Oval Office.The move takes effect at 12:01 am Eastern time (0401 GMT) on April 3 and affects foreign-made cars and light trucks imported into America. Key automobile parts will also be hit within the month.”The move has intensified concerns about the impact on global growth and corporate profitability, particularly for carmakers in Mexico, Japan, South Korea, and Germany — key suppliers to the US market, said Daniela Sabin Hathorn, senior market analyst at Capital.com.About half of the cars sold in the United States are made within the country. Of the imported vehicles, about half come from Mexico and Canada, with Japan, South Korea and Germany also major suppliers.Japan’s government called the tariffs “extremely regrettable”, while Canadian Prime Minister Mark Carney called it a “direct attack” on his country’s workers.French Finance Minister Eric Lombard warned: “The only solution for the European Union will be to raise tariffs on American products in response.”- Key figures around 1645 GMT -New York – Dow: DOWN 0.4 percent at 42,271.33 pointsNew York – S&P 500: DOWN 0.3 percent at 5,708.51New York – Nasdaq: DOWN 0.3 percent at 17,838.09 London – FTSE 100: DOWN 0.3 percent at 8,666.12 (close) Paris – CAC 40: DOWN 0.5 percent at 7,990.11 (close)Frankfurt – DAX: DOWN 0.7 percent at 22,678.74 (close)Tokyo – Nikkei 225: DOWN 0.6 percent at 37,799.97 (close)Hong Kong – Hang Seng Index: UP 0.4 percent at 23,578.80 (close)Shanghai – Composite: UP 0.2 percent at 3,373.75 (close)Euro/dollar: UP at $1.0794 from $1.0757 on WednesdayPound/dollar: UP at $1.2959 from $1.2891Dollar/yen: UP at 151.10 yen from 150.54 yenEuro/pound: DOWN at 83.30 pence from 83.41 penceWest Texas Intermediate: UP 0.1 percent at $69.75 per barrelBrent North Sea Crude: FLAT at $73.79 per barrel

World powers on Thursday blasted US President Donald Trump’s steep tariffs on imported vehicles and parts, vowing retaliation as a widening trade war intensifies.Major car exporter Germany urged a firm response from the European Union, while Japan said it “will consider all options.”The 25 percent US duties take effect starting 12.01am eastern time (0401 GMT) April 3 and impact foreign-made cars, light trucks and vehicle parts.Global stock markets plummeted with automakers like Toyota, Hyundai and Mercedes leading the plunge. In New York, shares in General Motors tumbled with Ford and Stellantis also declining.France Finance Minister Eric Lombard said the only solution for the EU is to “raise tariffs on American products in response.”Canadian Prime Minister Mark Carney said he convened a meeting to discuss trade options, while Mexico’s Economy Minister Marcelo Ebrard seeks “preferential treatment” for his country.Trump ramped up his threats, saying on social media that Canada and the EU could face “far larger” tariffs if they worked together “to do economic harm to the USA.”Trump confidant and Tesla boss Elon Musk said his company would not be spared, writing on X that the price for parts “is not trivial.” However, because Tesla builds its cars for the US market domestically it will in fact emerge relatively unscathed compared to rivals.The American Automotive Policy Council warned that the tariffs must be implemented in a way that “avoids raising prices for consumers” and preserves the industry’s competitiveness.While Trump invoked emergency economic powers for some earlier tariffs, his auto levies build on a government investigation completed in 2019.- ‘Cheaters’ -The Center for Automotive Research previously estimated that US tariffs could raise the price of a car by thousands of dollars and weigh on the jobs market.About one in two cars sold in the United States are manufactured in the country. Among imports, about half come from Mexico and Canada, with Japan, South Korea and Germany also major suppliers.Of the US-made cars, their average domestic content likely around 40 percent, the White House said.Canadian Vehicle Manufacturers’ Association president Brian Kingston said levies would bring higher costs for producers and consumers, alongside “a less competitive industry.”In a briefing Wednesday, Trump’s senior counselor Peter Navarro blasted “foreign trade cheaters” who he said turned the US manufacturing sector into a “lower wage assembly operation for foreign parts.”He took aim at Germany and Japan for reserving construction of higher-value parts to their countries.Since returning to the presidency, Trump has imposed tariffs on imports from major trading partners Canada, Mexico and China — alongside a 25 percent duty on steel and aluminum.The latest levies add to those already in place for autos.But the White House said that vehicles entering under the US-Mexico-Canada Agreement (USMCA) can qualify for a lower rate depending on their American content.Similarly, USMCA-compliant auto parts will remain tariff-free as officials establish a process to target their non-US content.Mexican President Claudia Sheinbaum said tariffs were contrary to the North American trade deal, but her country would wait until early April before giving a “comprehensive response.”- ‘Devastating impact’ -Uncertainty over Trump’s trade plans and worries they could trigger a downturn have roiled financial markets, with consumer confidence also slipping.Trump has defended levies as a way to raise government revenue and revitalize US industry.Targeting imported cars could strain ties with Washington’s allies, however.”Imposing 25 percent tariffs on imported cars will have a devastating impact on many of our close trading partners,” said Wendy Cutler, vice president at the Asia Society Policy Institute and a former US trade negotiator.Washington has free-trade agreements with some affected parties, “calling into question the value of US commitments” under a trade deal, she added.Besides automobiles, Trump is eyeing other sector-specific tariffs, including on pharmaceuticals, semiconductors and lumber.Trump has promised a “Liberation Day” on April 2, when he is set to unveil reciprocal levies, tailored to different trading partners, to address practices that his government deems unfair.White House Press Secretary Karoline Leavitt said these would focus on countries that have been “ripping off the United States,” although Trump noted some numbers would be more conservative than many expected.

Share prices of automakers slid Thursday after US President Donald Trump announced painful tariffs on imported vehicles and parts as he presses hardball trade policies many fear will spark a recession.In Tokyo, Toyota — the world’s top-selling carmaker — fell two percent, Honda shed 2.5 percent while Nissan was off 1.7 percent, while Mazda dived six percent.Seoul-listed Hyundai gave up more than four percent.Among European auto firms, Peugeot and Jeep maker Stellantis shed 3.5 percent, Porsche four percent and BMW 1.8 percent.  In Mumbai, India’s Tata Motors, which exports Jaguar Land Rovers to the United States, lost more than five percent. US-listed car giants also tumbled with General Motors and Ford all deep in the red in after-hours trade.”Recent glee over the notion that Trump wouldn’t impose sector specific tariffs… (in early April) have been entirely undermined by the fact that the president has instead opted to start announcing such measures ahead of that date,” noted Joshua Mahony, analyst at Scope Markets.There had been indications also that levies lined up for the president’s “Liberation Day” on April 2 would be less severe than feared.However, the White House’s habit of alternating between tough talk and leniency has fanned uncertainty and the latest announcement did little to soothe nerves.”What we’re going to be doing is a 25 percent tariff on all cars that are not made in the United States,” Trump said as he signed an order in the Oval Office.The move takes effect at 12:01 am Eastern time (0401 GMT) on April 3 and affects foreign-made cars and light trucks. Key automobile parts will also be hit within the month.About half of the cars sold in the United States are made within the country. Of the imported vehicles, about half come from Mexico and Canada, with Japan, South Korea and Germany also major suppliers.Japan’s government called the tariffs “extremely regrettable”, while Canadian Prime Minister Mark Carney called it a “direct attack” on his country’s workers.And French Finance Minister Eric Lombard warned on Thursday: “The only solution for the European Union will be to raise tariffs on American products in response.”UK finance minister Rachel Reeves said Britain does not want to “escalate” trade wars, with London locked in talks with Washington over potentially securing a post-Brexit trade deal.”We are looking to secure a better trading relationship with the United States,” she told Sky News.Losses on London’s FTSE 100 index were offset by strong gains among clothes retailers, with Next jumping 6.9 percent after posting annual pre-tax profit above the symbolic £1 billion ($1.3 billion) level.Close rival Marks and Spencer won 3.4 percent.- Key figures around 1030 GMT -London – FTSE 100: DOWN 0.6 percent at 8,641.37 pointsParis – CAC 40: DOWN 0.4 percent at 8,002.76Frankfurt – DAX: DOWN 0.7 at 22,672.94 Tokyo – Nikkei 225: DOWN 0.6 percent at 37,799.97 (close)Hong Kong – Hang Seng Index: UP 0.4 percent at 23,578.80 (close)Shanghai – Composite: UP 0.2 percent at 3,373.75 (close)New York – Dow: DOWN 0.3 percent at 42,454.79 (close)Euro/dollar: UP at $1.0774 from $1.0757 on WednesdayPound/dollar: UP at $1.2918 from $1.2891Dollar/yen: UP at 150.95 yen from 150.54 yenEuro/pound: DOWN at 83.39 pence from 83.41 penceWest Texas Intermediate: DOWN 0.1 percent at $69.57 per barrelBrent North Sea Crude: DOWN 0.1 percent at $72.97 per barrel

World powers on Thursday blasted US President Donald Trump’s steep tariffs on imports of vehicles and car parts, vowing retaliation as a widening trade war intensifies.Major car exporter Germany called for a firm response from the EU, while Japan said it “will consider all options.”Stock markets across Asia and Europe skidded into the red as auto manufacturers from Toyota to Hyundai and Mercedes led the plunge.The US duties will take effect at 12:01 am (0401 GMT) on April 3 and impact foreign-made cars and light trucks. Key automobile parts will also be hit within the month.”What we’re going to be doing is a 25 percent tariff on all cars that are not made in the United States. If they’re made in the United States, it is absolutely no tariff,” Trump said at the White House.France Finance Minister Eric Lombard condemned the “hostility,” saying that the “only solution for the European Union will be to raise tariffs on American products in response.”Canada’s Prime Minister Mark Carney said he had convened a meeting Thursday to “discuss our trade options.”As Washington’s major trading partners warned of retaliatory action, Trump ramped up his threats. “If the European Union works with Canada in order to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had!” Trump posted on his TruthSocial network.But Trump’s levies rattled domestic manufacturers too, with his top ally and Tesla boss Elon Musk admitting his company would not be spared the pain.”To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial,” Musk wrote on X.The association of American Automakers warned in a statement that the tariffs must be implemented in a way that “avoids raising prices for consumers” and preserves the industry’s competitiveness. – ‘Cheaters’ -The Center for Automotive Research has previously estimated that US tariffs –- including those on imported autos and metals –- could increase the price of a car by thousands of dollars and weigh on the jobs market.But Peter Navarro, Trump’s senior counselor for trade and manufacturing, in a briefing after Trump’s announcement, blasted “foreign trade cheaters” who he said turned America’s manufacturing sector into a “lower wage assembly operation for foreign parts.”He took aim at Germany and Japan for reserving the construction of higher-value parts to their countries.Since beginning his second term in January, Trump has imposed fresh tariffs on imports from major US trading partners Canada, Mexico and China — alongside a 25 percent duty on steel and aluminum.The latest levies will be in addition to those already in place.But the White House added that vehicles entering under the US-Mexico-Canada Agreement (USMCA) can qualify for a lower rate depending on their American content.Similarly, USMCA-compliant auto parts will remain tariff-free as officials establish a process to target their non-US content.- ‘Devastating impact’ -Uncertainty over Trump’s trade plans and worries they could trigger a downturn have roiled financial markets, with consumer confidence also falling in recent months.Trump has defended the levies as a way to raise government revenue and revitalize American industry.But targeting imported cars could strain ties with close partners such as Japan, South Korea, Canada, Mexico and Germany.”Imposing 25 percent tariffs on imported cars will have a devastating impact on many of our close trading partners,” said Wendy Cutler, vice president at the Asia Society Policy Institute and a former US trade negotiator.She added that Washington has free-trade agreements with some affected parties, “calling into question the value of US commitments” under a trade deal.About one in two cars sold in the United States are manufactured within the country. Among imports, about half come from Mexico and Canada, with Japan, South Korea and Germany also being major suppliers.And of the US-made cars, more than half were assembled from foreign parts, said a White House official.- ‘Liberation Day’ -Besides the automobile industry, Trump is also eyeing sector-specific tariffs, such as on pharmaceuticals, semiconductors and lumber.Wednesday’s announcement comes ahead of Trump’s so-called “Liberation Day” for the world’s biggest economy on April 2.He has promised reciprocal levies, tailored to different trading partners to remedy practices Washington deemed unfair. On Wednesday he said these duties will impact all countries.While Trump has invoked emergency economic powers for some recent tariffs, his auto levies build on a government investigation completed in 2019.The probe found that excessive imports were weakening the internal economy and might impair national security.

Australian Prime Minister Anthony Albanese said Thursday he would call a general election “imminently”, with local media reporting the poll would be held on May 3.Albanese’s left-leaning Labor government is nearing the end of its three-year term and must hold an election by May 17 at the latest.Recent polls show the government is neck-and-neck with its conservative rivals, who were turfed out in 2022 after almost a decade in power. As speculation mounted on Thursday, Albanese said he was preparing to call the election “soon”.”It will be called pretty imminently,” he told a local radio station.Multiple media outlets — including national broadcaster ABC — reported Albanese would announce the official start of campaigning on Friday, setting an election date of May 3.The 62-year-old’s government released its annual budget earlier this week, courting votes with surprise tax cuts and a raft of other sweeteners.Conservative leader Peter Dutton, 54, has pilloried Albanese, accusing him of “weak” leadership and stoking inflation through government largesse.Dutton’s signature policy is a US$200 billion scheme to construct seven industrial-scale nuclear reactors, putting the brakes on the growth of renewable energy.Polling shows economic concerns and the high cost of housing will dominate the contest. Although inflation has eased under Albanese — from 7.8 percent in 2022 to 2.4 percent in December — many households are still struggling with high food, fuel, and power prices.Major cities Sydney and Melbourne now rank among the 10 least-affordable housing markets in the world, according to the annual Demographia affordability index.

China rebuffed on Thursday a suggestion from US President Donald Trump that he might offer to reduce tariffs on the country to get Beijing’s approval for the sale of popular social media platform TikTok.Trump said this month the United States was in talks with four groups interested in acquiring TikTok, with the app facing an uncertain future in the country.A US law has ordered TikTok to divest from its Chinese owner ByteDance or be banned in the United States, enacted over concerns that Beijing could exploit the video-sharing platform to spy on Americans or covertly influence US public opinion.The law took effect on January 19, a day before Trump’s inauguration, but he quickly announced a delay that has allowed it to continue to operate.That delay is set to expire on April 5.Trump told reporters at the White House on Wednesday that he could give China “a little reduction in tariffs or something to get it done”.”We’re going to have a form of a deal,” Trump said, adding that if it wasn’t done in time, he would extend the deadline.”China is going to have to play a role in that, possibly in the form of an approval and I think they’ll do that.”Beijing swiftly rebuffed Trump’s suggestion, with its foreign ministry saying that it has “repeatedly stated our position” on TikTok.”The Chinese side’s stance against imposing additional tariffs is also consistent and clear,” foreign ministry spokesman Guo Jiakun said.- ‘People’s Bid for TikTok’ -Trump similarly attempted to ban TikTok in the United States on national security concerns during his first stint in the White House.TikTok temporarily shut down in the United States in January and disappeared from app stores as the deadline for the law approached, to the dismay of millions of users.Trump suspended its implementation for two-and-a-half months after beginning his second term on January 20, seeking a solution with Beijing.TikTok subsequently restored service in the United States and returned to the Apple and Google app stores in February.Artificial intelligence (AI) startup Perplexity recently expressed its interest in buying TikTok.Perplexity laid out in a blog post a vision for integrating its AI-powered internet search capabilities with the popular video-snippet sharing app.”Combining Perplexity’s answer engine with TikTok’s extensive video library would allow us to build the best search experience in the world,” the San Francisco-based firm said.Although TikTok does not appear overly motivated regarding the sale of the app, potential buyers include an initiative called “The People’s Bid for TikTok”, launched by real estate and sports tycoon Frank McCourt’s Project Liberty initiative.Others in the running are Microsoft, Oracle and a group that includes Internet personality MrBeast, whose real name is Jimmy Donaldson.”Any acquisition by a consortium of investors could in effect keep ByteDance in control of the algorithm, while any acquisition by a competitor would likely create a monopoly in the short form video and information space,” Perplexity said in its post.”All of society benefits when content feeds are liberated from the manipulations of foreign governments and globalist monopolists.”

Japan’s government warned Thursday of a “significant impact” on its economic ties with the United States and on global trade, after President Donald Trump announced import tariffs on cars.Tokyo is one of Washington’s closest economic and strategic allies, with its firms the biggest investors in the United States and one in 10 Japanese jobs tied to the auto sector.Trump announced on Wednesday 25 percent tariffs “on all cars that are not made in the United States” effective 12:01 am (0401 GMT) eastern time on April 3.Prime Minister Shigeru Ishiba, who last month held friendly talks with Trump at the White House, said Japan was reviewing an “appropriate” response.”Japan has made significant investments and significant job creation, which doesn’t apply to all countries… We are the number one (country) in investment in the United States,” Ishiba added.”We believe that the current measures and other broad-based trade restrictions by the US government could have a significant impact on the economic relationship between Japan and the US, as well as on the global economy and the multilateral trading system,” government spokesman Yoshimasa Hayashi said.”In response to this announcement, we have again told the US government that this measure was extremely regrettable and we strongly urged the US government to exclude Japan from the scope of this measure,” Hayashi said.South Korea’s trade and industry minister Ahn Duk-geun held an emergency meeting with major automakers and others after Trump’s announcement, the government said.”The government will work closely with the industry to devise countermeasures and, in coordination with other ministries, announce a comprehensive emergency response plan for the auto sector in April,” Ahn said.- Shares down -Trump’s announcement hammered carmakers in Asia, although they later recovered some ground.The world’s top-selling automaker Toyota closed down 2.0 percent, while Nissan shed 1.7 percent and Honda was off 2.5 percent.In South Korea, Hyundai shares dipped 4.0 percent.Contacted by AFP, Toyota was not immediately available for comment on Thursday. Honda said it would “study the impact of the tariffs on our businesses, then we will take measures to minimise the impact”.- US-Japan ties -Vehicles accounted for around 28 percent of Japan’s 21.3 trillion yen ($142 billion) of US-bound exports in 2024.Japanese ministers have been lobbying their US counterparts to secure tariff exemptions for goods like steel and vehicles, but these requests have been denied.The Trump administration says levies will raise government revenue, revitalise American industry and press countries on US priorities.Critics say they will increase prices for US consumers.About 50 percent of cars sold in the United States are manufactured domestically. Japanese automakers account for around 16 percent of car imports into the United States, and South Koreans 15 percent.Takahide Kiuchi, an economist at Nomura, said that the 25-percent tariff will shrink Japan’s economy by around 0.2 percent. “It would encourage a contraction of domestic production and employment and encourage a hollowing out of the economy,” Kiuchi said.Seiji Sugiura, senior analyst at Tokai Tokyo Intelligence Laboratory, estimated that the tariffs could collectively mean an additional cost of $11.4 billion for Japan’s top six automakers.”This is very high-impact,” Sugiura told AFP. “Against that, the automakers have not issued anything about how they plan to deal with it.””I have some clients in the auto industry. I think there will be a big impact. I will see some impact on myself, even though it will probably be indirect, because 25 percent is pretty big,” said Hiroki Ito, an IT company employee.”Of course we have different opinions, but I hope (Japan and the US) can find some common grounds to compromise so that we could solve issues in a calm manner,” Ito told AFP.burs-stu/tc

US President Donald Trump has announced steep tariffs on auto imports and parts, provoking threats of retaliation from trading partners ahead of further promised trade levies next week.Wall Street slumped ahead of Trump’s Wednesday afternoon announcement, while the world’s top-selling automaker Toyota plunged more than three percent.Japan’s Prime Minister Shigeru Ishiba said Tokyo was “considering all kinds of countermeasures”, while Canada’s Mark Carney branded Trump’s tariffs a “direct attack” on his country’s workers.Brazil’s President Luiz Inacio Lula da Silva also said his country “cannot stand still” in response to the levies.”What we’re going to be doing is a 25 percent tariff on all cars that are not made in the United States,” Trump said, as he signed the order in the Oval Office.The duties take effect at 12:01 am (0401 GMT) on April 3 and impact foreign-made cars and light trucks. Key automobile parts will also be hit within the month.Trump responded by threatening Canada and the European Union with “large scale tariffs, far larger than currently planned” if they work together to cause “economic harm” to the United States.Peter Navarro, Trump’s senior counselor for trade and manufacturing, in a briefing after Trump’s announcement blasted “foreign trade cheaters” who he said turned America’s manufacturing sector into a “lower wage assembly operation for foreign parts.”He took aim at Germany and Japan for reserving the construction of higher-value parts to their countries.But Washington’s levies appeared to raise eyebrows close to home, including from Trump ally and Tesla boss Elon Musk, who said the cost impact on his firm’s cars was “not trivial”.”To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial,” he posted on X.The association of American Automakers said in a statement on Wednesday that Trump’s tariffs must be implemented in a way that “avoids raising prices for consumers” and preserves the industry’s competitiveness. Since beginning his second term in January, Trump has imposed fresh tariffs on imports from major US trading partners Canada, Mexico and China — alongside a 25 percent duty on steel and aluminum.The latest levies will be in addition to those already in place for products.But the White House added that vehicles entering under the US-Mexico-Canada Agreement (USMCA) can qualify for a lower rate depending on their American content.Similarly, USMCA-compliant auto parts will remain tariff-free as officials establish a process to target their non-US content.- ‘Devastating impact’ -Uncertainty over Trump’s trade plans and worries they could trigger a downturn have roiled financial markets, with consumer confidence also falling in recent months.Shares in General Motors and Stellantis were each down more than three percent ahead of Trump’s announcement.In Japan, carmakers Nissan lost 2.5 percent, Honda shed 3.1 percent and Mitsubishi Motors gave up 4.5 percent, while Mazda and Subaru both gave up around six percent.South Korea’s Hyundai retreated 2.7 percent in Seoul.Trump has defended the levies as a way to raise government revenue and revitalize American industry.But targeting imported cars could strain ties with close partners such as Japan, South Korea, Canada, Mexico and Germany.”Imposing 25 percent tariffs on imported cars will have a devastating impact on many of our close trading partners,” said Wendy Cutler, vice president at the Asia Society Policy Institute and a former US trade negotiator.She added that Washington has free-trade agreements with some affected parties, “calling into question the value of US commitments” under a trade deal.About 50 percent of cars sold in the United States are manufactured within the country. Among imports, about half come from Mexico and Canada, with Japan, South Korea and Germany also being major suppliers.And of the US-made cars, more than half were assembled from foreign parts, said a White House official.The American Automotive Policy Council representing Detroit’s “Big Three” automakers — Ford, General Motors and Stellantis — issued a carefully worded statement on the tariffs, saying it hoped the policy would boost US auto production.But it stressed: “It is critical that tariffs are implemented in a way that avoids raising prices for consumers.”The Center for Automotive Research has previously estimated that US tariffs –- including those on metals and imported autos –- could increase the price of a car by thousands of dollars and weigh on the jobs market.- ‘Liberation Day’ -Besides the automobile industry, Trump is also eyeing sector-specific tariffs, such as on pharmaceuticals, semiconductors and lumber.Wednesday’s announcement comes ahead of Trump’s so-called “Liberation Day” for the world’s biggest economy on April 2.He has promised reciprocal levies, tailored to different trading partners to remedy practices Washington deemed unfair. On Wednesday he said these duties will impact all countries.While Trump has invoked emergency economic powers for some recent tariffs, his auto levies build on a government investigation completed in 2019.The probe found that excessive imports were weakening the internal economy and might impair national security.