Tokyo, Japan – U.S. President Donald Trump has issued a stark warning that he may impose tariffs of “30% or 35%” on Japanese goods if the two countries do not finalize a trade agreement by a looming deadline next week. This potential move is significant, especially considering that Japan only recently faced a 24% tariff following Trump’s controversial “Liberation Day,” which introduced steep import duties on various countries.
Previously, tariffs affecting Japan and other trading partners were temporarily reduced to 10% for a 90-day negotiation period, but that reprieve is set to end on July 9. Trump has indicated that he has no intention of extending this negotiating window, casting uncertainty over ongoing talks.
During a recent flight on Air Force One, Trump expressed skepticism about securing a deal with Tokyo, stating, “We’ve dealt with Japan. I’m not sure we’re going to make a deal. I doubt it.” This remark underscores the tension between the two nations as they navigate complex trade issues.
Japanese officials have opted to refrain from directly addressing Trump’s tariff threats. Kazuhiko Aoki, Japan’s Deputy Chief Cabinet Secretary, acknowledged awareness of Trump’s statements but emphasized that the country will not comment on every pronouncement from U.S. government officials.
Currently, Japanese exports to the U.S. are subject to a 10% tariff, while vehicles and auto parts face a heftier 25% import tax. Additionally, tariffs on steel and aluminum imports are currently set at 50%, adding to the pressure on Japan’s economy.
Yoshimasa Hayashi, Japan’s Chief Cabinet Secretary, recently highlighted that compromising on agricultural concessions to strike a deal with the U.S. would be off the table, pointing to the vital importance of protecting domestic farmers. This statement came after Trump criticized Japan’s stance on U.S. rice imports, asserting that Japan is missing out on opportunities despite its own rice supply issues.
In his remarks, Trump also lamented the trade disparities, noting, “To show people how spoiled countries have become with respect to the United States of America… they won’t take our rice, and yet they have a massive rice shortage.”
Initially, Trump had announced ambitious plans to sign 90 trade agreements during the pause on new tariffs, but thus far, only the United Kingdom has managed to reach a deal with the U.S., raising questions about the efficacy of his approach.
As the deadline approaches, both nations remain at a crossroads, with a potential escalation in tariffs looming as an uncertain outcome that could reshape economic ties between the U.S. and Japan.