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Trump warns Japan with tariff threat, his team responds

Trump warns Japan with tariff threat, his team responds Donald Trump (photo: Getty Images)

US President Donald Trump has threatened to impose a new level of tariffs on Japan, Bloomberg reports, even as his trade advisor insists that negotiations on a trade deal are continuing.

Trump’s latest warning to Tokyo came just one week before higher tariffs are set to resume on July 9 for dozens of US trading partners, including Japan.

The president specifically cited Japan’s reluctance to accept imports of American rice as a key point of contention.

“They won’t take our RICE, and yet they have a massive rice shortage. In other words, we’ll just be sending them a letter, and we love having them as a Trading Partner for many years to come,” Trump wrote on social media.

Ahead of the higher tariffs taking effect, Trump spent several weeks trying to pressure partners, threatening to halt negotiations with those he deemed difficult. Instead, he warned he would send these countries letters informing them of the imposed tariff rates.

Back in April, Trump paused his tariffs on each country to allow time for negotiations. Since then, he and his team repeatedly stated that a list of agreements would be ready within weeks. However, so far only two deals have been announced — with China and the UK.

Meanwhile, White House National Economic Council Director Kevin Hassett indicated that agreements with several governments would be announced after July 4, the US Independence Day.

He stated that the administration is focused on pushing through Congress the huge Trump tax and spending bill before the holiday.

“It might be that people take an hour or two off on the Fourth to watch the fireworks and then we’ll get back, and we’re going to start to announce the frameworks. We’re expecting to meet with the president and explain the frameworks that have been negotiated and see if he approves or not,” Hassett said on Monday.

Returning to Japan, he said that negotiations between Washington and Tokyo are expected to continue despite Trump’s recent threat.

“Nothing is over. I know what he just posted, but there’ll still be discussions right up to the end,” Hassett told reporters.

Challenges facing Japan in trade talks

Bloomberg notes that Japan is one of the US's most important trading partners, placing it among the economies that Trump administration officials consider ready to finalize trade deals rather than face tariff increases.

Last week, US Trade Representative Howard Lutnik stated that the administration aims to complete trade agreements with about 10 of the largest US partners, while the rest will receive letters outlining their tariff rates.

However, US and Japanese officials still face difficult issues related to tariff levels and trade barriers, which have been the subject of ongoing negotiations for several months.

Specifically, Japan has pushed for a rollback of Trump’s 25% auto tariffs, arguing that these levies cripple a vital industry. The US president rejected the request, stating that Japan does not import a significant number of American-made vehicles.

Additionally, Japan has faced a separate 24% tariff on all its exports to the US, which was temporarily reduced to 10% during the negotiation period. If no deal is reached, this higher tariff will come back into effect.

Recently, Donald Trump stated that he does not expect to extend the current tariff pause deadline.

“I don't think I'll need to. I could, no big deal,” he said in an interview with Fox News.