US President Donald Trump has expressed skepticism about reaching a trade agreement with Japan, citing longstanding trade imbalances and accusing Japan of not purchasing American rice. Speaking aboard Air Force One on Tuesday, Trump remarked, “We’ve dealt with Japan. I’m not sure if we’re gonna make a deal, I doubt it, with Japan.” He further accused Japan of being “spoiled” after allegedly taking advantage of the US for decades.
The comments arrive as the July 9 deadline looms for the end of a 90-day pause on Trump’s “reciprocal tariffs.” Japan, along with other US trade partners, is keen to secure a deal that could prevent the imposition of higher tariffs on their exports. Japanese exports to the US were subjected to a 24% levy when Trump initiated his global tariff strategy on April 2, before pausing them temporarily.
Background of Trade Tensions
The backdrop to Trump’s remarks includes a visit by Japanese Foreign Minister Takeshi Iwaya to Washington for a Quad meeting, alongside representatives from Australia and India. This visit follows Japanese tariff negotiator Ryosei Akazawa’s seventh trip to Washington for trade discussions.
Japan remains a critical trade partner and security ally for the US in East Asia, yet the relationship has been strained by Trump’s aggressive tariff policies. On Tuesday, Trump confirmed he does not intend to extend the tariff pause beyond July 9, stating, “I’m not thinking about a pause.”
Disputed Claims on Trade Practices
On social media, Trump accused Japan of not buying American rice, a claim contradicted by trade data. According to the US Census Bureau, Japan purchased $298 million worth of rice from the US last year and $114 million between January and April of this year. Nonetheless, Trump reiterated the claim, adding that Japan does not import US cars, despite data from the Japan Automobile Importers Association showing that Japan imported 16,707 American automobiles last year.
“They need rice so badly, but they won’t take rice,” Trump said. “We didn’t give them one car in 10 years.”
Trump suggested that Japan might face a new tariff rate, yet to be determined, if a deal is not reached. “What I’m going to do is, I’ll write them a letter to say, ‘We thank you very much, and we know you can’t do the kind of things that we need, and therefore you pay a 30%, 35% or whatever the number is that we determine,’” he stated.
Ongoing Negotiations and Future Prospects
Japanese officials have not indicated any plans to halt rice purchases from the US. On Wednesday, Japan’s Deputy Chief Cabinet Secretary Kazuhiko Aoki confirmed that trade talks are ongoing. “Japan will continue to engage vigorously in sincere and honest discussions toward the realization of an agreement that will benefit both Japan and the United States,” he commented, while declining to address Trump’s specific claims.
The trade discussions have stalled primarily due to Trump’s tariffs on cars, a significant sector of the Japanese economy. Japan has sought a reduction in the 25% tariff on cars, but Trump has remained firm. In mid-June, Japanese Prime Minister Shigeru Ishiba met with Trump at the G7 summit, where they agreed to continue negotiations, though no significant progress was made.
Implications and Analysis
The impasse in US-Japan trade negotiations reflects broader challenges in international trade relations under the Trump administration. Experts suggest that the US’s hardline stance could lead to increased economic tensions and may push Japan to seek stronger trade ties with other nations, potentially diminishing US influence in the region.
As the July 9 deadline approaches, the potential for escalated tariffs could have significant repercussions for both economies. Analysts warn that failure to reach a deal could disrupt supply chains and increase costs for consumers and businesses alike.
Moving forward, the focus will be on whether diplomatic efforts can bridge the gap between the two nations and lead to a mutually beneficial agreement. The outcome of these negotiations will likely have lasting impacts on US-Japan relations and the broader geopolitical landscape in East Asia.
