Five Nations and EU Urge Trump Not to Impose New Airplane Tariffs 

An American Airlines Boeing 737 MAX 8 flight from Los Angeles approaches for landing at Reagan National Airport in Washington, US, March 13, 2019. (Reuters)
An American Airlines Boeing 737 MAX 8 flight from Los Angeles approaches for landing at Reagan National Airport in Washington, US, March 13, 2019. (Reuters)
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Five Nations and EU Urge Trump Not to Impose New Airplane Tariffs 

An American Airlines Boeing 737 MAX 8 flight from Los Angeles approaches for landing at Reagan National Airport in Washington, US, March 13, 2019. (Reuters)
An American Airlines Boeing 737 MAX 8 flight from Los Angeles approaches for landing at Reagan National Airport in Washington, US, March 13, 2019. (Reuters)

Five nations and the European Union, as well as airlines and aerospace firms worldwide, urged the Trump administration not to impose new national security tariffs on imported commercial planes and parts, documents released on Tuesday showed.

Airlines and planemakers have been lobbying President Donald Trump to restore the tariff-free regime under the 1979 Civil Aircraft Agreement that has yielded an annual trade surplus of $75 billion for the US industry.

The documents made public by the US Commerce Department bared concerns over the fallout of possible new tariffs expressed by companies as well as nations such as Canada, China, Japan, Mexico and Switzerland, besides the European Union.

"As reliable trading partners, the European Union and United States should strengthen their trade regarding aircraft and aircraft parts, rather than hinder it by imposing trade restrictions," the EU wrote.

It would consider its options "to ensure a level playing field," it added.

Trump has already imposed tariffs of 10% on nearly all airplane and parts imports.

"No country or region should attempt to support the development of its domestic aircraft manufacturing industry by suppressing foreign competitors," the Chinese government wrote.

Separately, US planemaker Boeing cited a recent trade deal unveiled in May with Britain that ensures tariff-free treatment for airplanes and parts.

"The United States should ensure duty-free treatment for commercial aircraft and their parts in any negotiated trade agreement, similar to its efforts with the United Kingdom," Boeing told the Commerce Department in a filing.

Mexico said in 2024 it exported $1.45 billion in aircraft parts, just a tenth of the total, to the United States. The EU said it took US exports of aircraft worth roughly $12 billion, while exporting about $8 billion of aircraft to the US.

In early May, the Commerce Department launched a "Section 232" national security investigation into imports of commercial aircraft, jet engines and parts that could form the basis for even higher tariffs on such imports.

Last week, Delta Air Lines and major trade groups warned of tariffs' impact on ticket prices, aviation safety and supply chains.

"Current US tariffs on aviation are putting domestic production of commercial aircraft at risk," Airbus Americas CEO Robin Hayes said in a filing.

"It is not realistic or sensible today to create a 100% domestic supply chain in any country."

Boeing said it had been increasing US content in its airplanes over the last decade and its newest airplanes, the 737 MAX 10 and 777X, would have "more than 88% domestically-sourced content."

The United Auto Workers union, which represents 10,000 aerospace workers, said it supports tariffs and domestic production quotas, adding that US aerospace employment has fallen to 510,000 in 2024 from 850,000 in 1990.

"To safeguard the entire aerospace supply chain across the commercial and defense sectors, comprehensive tariffs and production quotas on several products are needed," it said.

JetBlue Airways opposed new tariffs, however, saying, "Trade policy should reinforce, not destabilize, the proven systems that keep our aircraft flying safely and affordably."



Türkiye Says Russia Gave It $9 Billion in New Financing for Akkuyu Nuclear Plant

Türkiye’s Energy Minister Alparslan Bayraktar talks during a meeting in Ankara, Türkiye, September 14, 2023. (Reuters)
Türkiye’s Energy Minister Alparslan Bayraktar talks during a meeting in Ankara, Türkiye, September 14, 2023. (Reuters)
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Türkiye Says Russia Gave It $9 Billion in New Financing for Akkuyu Nuclear Plant

Türkiye’s Energy Minister Alparslan Bayraktar talks during a meeting in Ankara, Türkiye, September 14, 2023. (Reuters)
Türkiye’s Energy Minister Alparslan Bayraktar talks during a meeting in Ankara, Türkiye, September 14, 2023. (Reuters)

Türkiye's energy minister said Russia had provided new financing worth $9 billion for the Akkuyu nuclear power plant being built by ​Moscow's state nuclear energy company Rosatom, adding Ankara expected the power plant to be operational in 2026.

Rosatom is building Türkiye's first nuclear power station at Akkuyu in the Mediterranean province of Mersin per a 2010 accord worth $20 billion. The plant was expected ‌to be operational ‌this year, but has been ‌delayed.

"This (financing) ⁠will ​most ‌likely be used in 2026-2027. There will be at least $4-5 billion from there for 2026 in terms of foreign financing," Alparslan Bayraktar told some local reporters at a briefing in Istanbul, according to a readout from his ministry.

He said ⁠Türkiye was in talks with South Korea, China, Russia, and ‌the United States on ‍nuclear projects in ‍the Sinop province and Thrace region, and added ‍Ankara wanted to receive "the most competitive offer".

Bayraktar said Türkiye wanted to generate nuclear power at home and aimed to provide clear figures on targets.


China Bets on Advanced Technologies to Revive Tepid Industrial Sector

A humanoid robot Tiangong by Beijing Innovation Center of Humanoid Robotics Co, moves an orange as a demonstration at its company, during an organized media tour to Beijing Robotics Industrial Park, in Beijing Economic-Technological Development Area, also known as Beijing E-Town, China May 16, 2025. (Reuters)
A humanoid robot Tiangong by Beijing Innovation Center of Humanoid Robotics Co, moves an orange as a demonstration at its company, during an organized media tour to Beijing Robotics Industrial Park, in Beijing Economic-Technological Development Area, also known as Beijing E-Town, China May 16, 2025. (Reuters)
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China Bets on Advanced Technologies to Revive Tepid Industrial Sector

A humanoid robot Tiangong by Beijing Innovation Center of Humanoid Robotics Co, moves an orange as a demonstration at its company, during an organized media tour to Beijing Robotics Industrial Park, in Beijing Economic-Technological Development Area, also known as Beijing E-Town, China May 16, 2025. (Reuters)
A humanoid robot Tiangong by Beijing Innovation Center of Humanoid Robotics Co, moves an orange as a demonstration at its company, during an organized media tour to Beijing Robotics Industrial Park, in Beijing Economic-Technological Development Area, also known as Beijing E-Town, China May 16, 2025. (Reuters)

China pledged on Friday to double down on upgrading its manufacturing base and ​promised capital to fund efforts targeting technological breakthroughs, after its industrial sector delivered an underwhelming performance this year.

China's industry ministry expects output of large industrial companies to have increased 5.9% in 2025 compared with 2024, state broadcaster CCTV said on Friday, almost unchanged from the 5.8% pace in 2024.

It would also be less than the ‌6% pace ‌of the first 11 months of ‌2025, ⁠based ​on ‌data released by the National Bureau of Statistics, as a weak Chinese economy suppressed domestic demand.

Industrial output, which covers industrial firms with annual revenue of at least 20 million yuan ($2.85 million), recorded growth of 4.8% in November, the weakest monthly year-on-year rise since August 2024.

Chinese policymakers have been looking ⁠to create new growth drivers in the economy by focusing on advancing ‌its industrial sector.

China has also vowed stronger ‍efforts to achieve technological self-reliance ‍amid intensifying rivalry with the United States over dominance ‍in advanced technology.

At the annual two-day national industrial work conference in Beijing that ended on Friday, officials pledged to deliver major breakthroughs in building a "modern industrial system" anchored by advanced manufacturing.

The ​focus will be on sectors such as integrated circuits, low-altitude economy, aerospace and biomedicine, an industry ministry ⁠statement showed.

The statement comes after China launched on Friday a national venture capital fund aimed at guiding billions of dollars of capital into "key hard technologies" such as quantum technology and brain-computer interfaces.

On artificial intelligence, the industry ministry said it will expand efforts to help small and medium-sized enterprises adopt the technology, while fostering new intelligent agents and AI-native companies in key industries.

Officials also vowed to "firmly curb" deflationary price wars, dubbed "involution", referring to excessive and low-return competition among ‌firms that erodes profits.


Japan Proposes Record Budget Spending While Curbing Fresh Debt

Year-end shoppers walk along at the Ameyoko shopping street ahead of the New Year in Tokyo, Japan, 26 December 2025. (EPA)
Year-end shoppers walk along at the Ameyoko shopping street ahead of the New Year in Tokyo, Japan, 26 December 2025. (EPA)
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Japan Proposes Record Budget Spending While Curbing Fresh Debt

Year-end shoppers walk along at the Ameyoko shopping street ahead of the New Year in Tokyo, Japan, 26 December 2025. (EPA)
Year-end shoppers walk along at the Ameyoko shopping street ahead of the New Year in Tokyo, Japan, 26 December 2025. (EPA)

Japan's government on Friday proposed record spending for next fiscal year while curbing debt issuance, underscoring Prime Minister Sanae Takaichi's challenge in boosting the ​economy while inflation remains above the central bank's target.

Her cabinet approved a draft budget of $783 billion that addresses market jitters by capping bond issuance and reducing the proportion of the budget financed by fresh debt to the lowest in almost three decades.

Also complicating Takaichi's policy challenge, core inflation in Tokyo stayed above the Bank of Japan's 2% target this month while the yen remains weak, bolstering the central bank's case to keep raising interest rates.

The record 122.3-trillion-yen budget for the year starting in April, a core part of Takaichi's "proactive" fiscal policy, will likely underpin consumption but could also accelerate inflation and further strain Japan's tattered finances.

DELICATE BALANCE OF BUDGET SUPPORT, DEBT RESTRAINT

Investor unease about fiscal expansion in an economy with the heaviest debt burden in the industrialized world has driven super-long government bond yields to record highs and weighed on the ‌yen.

"We believe we have ‌been able to draft a budget that not only increases allocations for key policy ‌measures ⁠but also takes ​fiscal discipline ‌into account, achieving both a strong economy and fiscal sustainability," said Finance Minister Satsuki Katayama.

She told a press conference the draft budget keeps new bond issuance below 30 trillion yen ($190 billion) for a second consecutive year, with the debt dependence ratio falling to 24.2%, the lowest since 1998.

The Takaichi government's efforts to reassure Japanese government bond investors were showing some success.

The 30-year JGB yield fell on Thursday from a record high 3.45% after Reuters reported the government will likely reduce new issuance of super-long JGBs next fiscal year to the lowest in 17 years. Yields slipped further on Friday on the administration's efforts at fiscal restraint.

The budget was not as large as initially feared, said Saisuke Sakai, senior economist at Mizuho Research & Technologies. "But political fragmentation raises ⁠the risk that Takaichi may resort to a large supplementary budget next year to secure opposition support, keeping alive market concerns that fiscal expansion could push the yen down and accelerate inflation," he ‌said.

"It's too optimistic to assume that the current environment will persist."

The proposed spending is ‍inflated by a jump in debt-servicing costs for interest payments and ‍debt redemption.

It also reflects a 3.8% rise in military spending to 9 trillion yen ($60 billion) as part of the assertive defense ‍policy of Takaichi, a conservative nationalist, and in line with a U.S. push for its allies to pay more for their own defense.

TOKYO INFLATION SLOWS BUT STILL POINTS TO RATE HIKES

The Tokyo core consumer price index, which excludes volatile costs of fresh food, rose 2.3% in December from a year earlier, less than market forecasts for a 2.5% gain and slowing from a 2.8% increase in November.

The data backs up the central bank's view that core inflation will ​slide below its 2% target in coming months on easing cost pressure, before resuming a more demand-led increase that justifies additional rate increases.

But some analysts warn of the risk renewed yen declines may prod firms to keep raising ⁠prices, leading to sticky, cost-led inflation that could quicken the pace of BOJ rate hikes.

"Today's data suggests food inflation may be peaking. But the weak yen may give firms an excuse to resume price hikes for food, which may keep inflation elevated," said Yoshiki Shinke, senior executive economist at Dai-ichi Life Research Institute.

An inflation index for the capital that strips away both fresh food and fuel costs - closely watched by the BOJ as a measure of demand-driven prices - rose 2.6% in December after a 2.8% increase in November.

Data on Friday also showed Japan's factory output fell 2.6% in November from the previous month, deeper than market forecasts for a 2.0% drop, due to cuts in automobile and lithium-ion battery production.

The BOJ raised its policy rate last week to a 30-year high of 0.75%, taking another landmark step in ending decades of huge monetary support, in a sign of its conviction Japan is progressing toward durably hitting its 2% inflation target.

With core inflation exceeding the BOJ's target for nearly four years, Governor Kazuo Ueda has signaled the BOJ's readiness to keep raising rates if the economy continues to improve, backed by solid wage gains.

Yen bears, however, have dumped ‌the Japanese currency in the belief that Ueda's rate hikes are too gradual, prompting Katayama last week to threaten yen-buying intervention, saying the government was "alarmed as we are clearly seeing one-sided, sharp moves" in the yen.