Japan

Intelligence for Better Decision Making

Japanese Company Affiliates Challenge Trump-Era Tariffs in US Court

Dec. 4, 2025 | Governance & Law

Affiliates of Japanese firms are contesting the Trump administration’s additional tariffs, arguing that the measures exceeded presidential authority.

**US affiliates of nine Japanese companies—including Toyota Tsusho Corp, Sumitomo Chemical Co., Ricoh Co., Yokohama Rubber Co., Ushio Inc., NGK Insulators Ltd., Kawasaki Motors Ltd., Yamazaki Mazak Corp and Proterial Ltd.—have filed lawsuits in the US Court of International Trade seeking full refunds for tariffs they paid in 2025.**
They argue that the levies, imposed under the International Emergency Economic Powers Act without congressional approval, exceeded the act’s scope by authorizing “reciprocal” or sector-wide tariffs on imports from China, Canada, Mexico and other nations.

**These filings follow Supreme Court oral arguments in November, during which justices questioned whether the president could invoke a 1970s-era emergency law to bypass Congress when imposing high tariffs on national-security grounds.**
Lower courts previously ruled that the Trump administration overstepped its authority by using IEEPA to penalize countries for insufficient cooperation on fentanyl trafficking, rather than to address a direct threat to US national security.

**The Japanese affiliates note that even if the Supreme Court voids the tariffs, importers would not automatically receive refunds.**
They ask the Court of International Trade to declare the tariffs illegal, block any new reciprocal levies and ensure full repayment if the high court strikes down the measures.

**The timing of the Supreme Court’s decision remains uncertain, and legal experts warn that an invalidation could trigger a protracted, complex refund process spanning several years.**
Meanwhile, other entities—such as US retailer Costco Wholesale Corp—have filed their own suits to recover duties paid under the same Trump-era tariff schedules.

LDP Moves to Reduce House Seats and Redraw Electoral Districts

Dec. 4, 2025 | Politics

Japan’s Liberal Democratic Party has proposed reducing the total number of seats in the House of Representatives from 465 to 420 or fewer and redrawing electoral districts based on updated population data.

**The draft legislation tasks an electoral system council—including representatives from all parties in the House—with deciding the precise methods for seat reduction, and it requires lawmakers to enact the necessary legal measures within one year of the law’s passage.**
If the parties fail to reach agreement within twelve months, an automatic reduction clause would eliminate 25 single-member constituencies and 20 proportional representation seats. In that event, the national Council for the Delimitation of Constituencies would use 2025 census figures to redraw district boundaries within one year, potentially paving the way for elections under the new structure by December 2027.

**During an LDP meeting on December 2, 2025, members raised objections to the automatic reduction clause, leading party leaders to delay final approval until the next day.**
Former Foreign Minister Takeo Iwaya criticized the process as rough and urged removal of the clause due to insufficient internal dialogue. Secretary-General Shun’ichi Suzuki defended the one-year review period and the 10 percent reduction target, noting public backing for seat cuts and previous comments by Constitutional Democratic Party leader Yoshihiko Noda. Ahead of that meeting, LDP negotiators and representatives of the Japan Innovation Party agreed to accelerate internal approvals and submit the bill during the current Diet session, though some LDP members still question whether the party can muster the necessary support.

**Two LDP calculations project that single-member districts would drop from 289 to 264 and proportional representation seats from 176 to 156.**
Both estimates apply the Adams method to align seat allocations with prefectural population ratios, targeting cuts in 20 prefectures. Under each plan, Tokyo would lose three single-member seats, Kanagawa, Chiba, and Osaka would each lose two, and smaller prefectures such as Akita, Toyama, and Kagawa would see districts reduced from three to two. All 11 proportional representation blocks would lose between one and three seats, with the exact numbers depending on whether the adjustments use the 2020 census or the 2025 Basic Resident Register data.

**Analysts warn that these reforms would increase disparities in vote weight across prefectures, raising the ratio of the most to the least populous districts from 1.7 to about 1.86.**
Post-reform, Chiba would have the highest population per representative at roughly 510,183, while Tottori would have the lowest at about 274,383. Critics argue that widening these gaps could further weaken rural influence and undermine voter equality. Former Prime Minister Shigeru Ishiba has opposed seat reductions and cautioned that returning to multi-member districts might stoke political conflict, reflecting the broader debate over fair representation and electoral balance.

Monitored Intelligence for Japan - Dec. 5, 2025

News
Media
368

Government
Releases
36

City/State
Releases
93

Embassy
Releases
1

Foreign
Service
Advisories
0

Academic/
Think
Tank
16

Podcasts
0

Videos
0

Social
Media
0

Business
Releases
0

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Thailand, Indonesia, Vietnam suffer massive economic losses from downpours

NHK | English | News | Dec. 5, 2025 | Extreme Weather Events

Thailand has experienced severe flooding since November, resulting in the destruction of residences, commercial facilities, and rubber-planting areas critical for natural rubber production. The Thai government estimates the total economic damage at 500 billion baht, equivalent to approximately 15.7 billion dollars.

Indonesia has also been severely impacted by torrential rains, which have destroyed homes, infrastructure such as roads and bridges, and flooded extensive farmlands. The Center of Economic and Law Studies, an Indonesian think tank, estimates the country's economic losses to exceed 68 trillion rupiahs, or over 4 billion dollars.

Vietnam has faced frequent typhoons and heavy rain throughout the year, causing widespread damage. The Vietnamese government projects the country’s economic losses to reach 85 trillion dong, amounting to over 3 billion dollars.

佐川急便、荷物預かり停止本州・四国、一部地域向け

Sagawa Express Suspends Parcel Storage for Honshu, Shikoku, and Some Areas

Tokyo Shimbun | Local Language | News | Dec. 5, 2025 | Supply Chain Issues

Sagawa Express announced on December 4, 2025, that it has partially suspended the acceptance of parcels brought into its offices and scheduled for delivery in certain areas of Honshu and Shikoku. This suspension is due to an unexpected surge in parcel volumes following a large online sale at the end of November, which had already caused delivery delays. The service is expected to resume on December 5.

The suspension specifically affects parcels destined for some regions, with Sagawa Express stopping acceptance, storage at offices, and pickup services for corporate clients in those areas. Since late November, the company has also halted delivery schedule notifications through LINE and other platforms.

The rise in parcel volume is attributed to the growing popularity of the U.S.-originated "Black Friday" sales event in Japan, leading to higher-than-usual demand. Yamato Transport, another major delivery company, is also experiencing delivery delays due to similar pressures.

China unleashes diplomatic campaign to isolate Japan amid Taiwan row

Japan Times | English | News | Dec. 5, 2025 | Geopolitical Conflict and Disputes

China has intensified its diplomatic efforts to isolate Japan amid an ongoing dispute over Japanese Prime Minister Sanae Takaichi's comments on Taiwan. Chinese Foreign Minister Wang Yi met with Russian officials Sergey Lavrov and Sergei Shoigu in Moscow, where both countries expressed a shared stance against Japan.

During the talks, China and Russia agreed to enhance their strategic coordination, particularly on issues related to Japan. They jointly criticized Japan for what they described as increasing militarism and reaffirmed their commitment to upholding the outcomes of World War II. Both countries opposed any attempts to whitewash Japan's colonial aggression or revive fascism and militarism.

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