U.S. President Donald Trump has sparked fresh tensions with Japan, branding the nation “spoiled” for its reluctance to import American rice. His remarks come just days before the looming July 9 deadline that could see new tariffs introduced, potentially intensifying the ongoing trade war and shaking the global economy.
On 1 July, Trump took to Truth Social, blasting Japan for not accepting U.S. rice despite what he claimed was a domestic rice shortage in the country. “They won’t take our RICE, and yet they have a massive rice shortage,” Trump posted, warning that the U.S. may soon walk away from trade negotiations altogether.
He added ominously, “We’ll just be sending them a letter, and we love having them as a Trading Partner for many years to come,” referring to formal notifications the U.S. can issue to impose tariffs.
Tariff Deadline Approaches Amid Tense Negotiations
The urgency stems from a 90-day pause on reciprocal tariffs that expires on 9 July. During this pause, tariff rates on Japanese exports to the U.S. had been reduced to a universal rate of 10%, down from the previous minimum of 24%. If talks fail, these rates could jump sharply, fuelling fears of a deeper trade war.
In an interview with Fox News on 29 June, Trump threatened Japan with a 25% tariff on cars, criticising the country for exporting millions of vehicles to the U.S. while allegedly refusing American automotive products in return. “Hey, Mr Japan, here’s the story: You’re going to pay a 25% tariff on your cars,” he said, signalling escalating trade tensions.
Japan Struggles With Rice Shortage Amid Rising Prices
Japan is currently grappling with a significant rice shortage, as the cost-of-living crisis has driven rice prices to double over the past year. While boosting imports of American rice could alleviate the shortage, such a move would likely anger Japan’s domestic farmers—a crucial voter base ahead of the upper house elections scheduled for 20 July.
Despite Trump’s aggressive rhetoric, Japanese negotiators, led by top trade envoy Ryosei Akazawa, have been trying to reach an agreement. After meeting U.S. Commerce Secretary Howard Lutnick in Washington and holding follow-up calls, Akazawa described talks as having reached a “critical point” in a social media post on 30 June.
Auto Industry and Rare Earths Add Complexity to Talks
Japan’s automotive sector remains a key sticking point. The U.S. trade deficit with Japan reached US$58.3 billion (about S$78.6 billion) in 2024, with cars accounting for over 80% of the gap. Akazawa has insisted that additional tariffs on Japanese cars would be unacceptable, highlighting Japan’s major contributions to the American economy through its auto industry.
Meanwhile, Japan has offered cooperation on rare-earth minerals, a strategic resource in the global economy, especially following China’s recent export restrictions. However, reports suggest this offer has not gained traction with the Trump administration.
Negotiations to Continue Despite Threats
White House National Economic Council Director Kevin Hassett reassured reporters that discussions between Japan and the U.S. are still ongoing, despite Trump’s fiery posts. “Nothing is over,” he told Bloomberg, adding that both sides are expected to negotiate until the last possible moment.
Japan’s reluctance to ramp up rice imports from the U.S. highlights the complexity of balancing domestic interests with international trade commitments. As the deadline approaches, the outcome of these negotiations could reshape not only Japan-U.S. trade relations but also the stability of global markets.