Trump has no intention of extending tariff pause, renews criticism of Japan
Photo: Donald Trump (Getty Images)
US President Donald Trump has stated that he is not considering postponing the July 9 deadline for reinstating higher tariffs. He also renewed his criticism of Japan, according to Bloomberg.
"No, I’m not thinking about the pause,” Trump said Tuesday when asked whether he would extend the negotiating period with trading partners. “I’ll be writing letters to a lot of countries."
Following his comments, US stocks retreated. The S&P 500 index, America’s main benchmark tracking 500 major companies, fell 14 points shortly after the remarks, reversing earlier stable trading. As of 3:36 PM in New York, the index was down 0.1%.
Meanwhile, the Cboe VIX index (often referred to as Wall Street’s "fear gauge") briefly surged above 16.8 before stabilizing.
According to Bloomberg, the dollar remained largely unchanged after Trump’s statement. However, the Japanese yen continued to strengthen against the US dollar, outperforming all other G10 currencies.
Investors are closely watching Trump’s decision on whether he will maintain the temporary 90-day pause on April tariffs, initially put in place to allow time for negotiations.
Trump targets Japan over trade
Bloomberg also noted that on Tuesday, Trump intensified his criticism of Japan, accusing it of refusing to accept US rice exports and maintaining an imbalanced auto trade relationship.
He argued that Tokyo should be made to "pay 30%, 35% or whatever the number is that we determine, because we also have a very big trade deficit with Japan," Trump said.
"I’m not sure we’re going to make a deal. I doubt it with Japan, they’re very tough. You have to understand, they’re very spoiled," Trump stated.
According to Bloomberg, Japanese Prime Minister Shigeru Ishiba’s efforts to pursue a steady, friendly tone in negotiations have been challenged by Trump’s pressure tactics.
Tokyo has pushed for tariff relief for its auto sector and other trade exemptions, but such moves may backfire as Trump seeks quick trade wins ahead of key political dates.
"I love Japan. I really like the new prime minister,” Trump told reporters. “But they and others are so spoiled from having ripped us off for 30, 40 years that it’s really hard for them to make a deal."
Trump recently threatened to send Japan a letter outlining the exact tariff rate the country would have to pay for its exports to the US.
Despite the latest threat, White House National Economic Council Director Kevin Hassett said negotiations between Washington and Tokyo would continue. He also hinted that several deals with other countries may be announced after July 4, US Independence Day.
