President Donald Trump has threatened to impose higher tariffs on Japanese exports to the United States, citing Japan’s alleged unwillingness to buy American-grown rice. In a post on Truth Social, Trump stated, “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.” However, this claim has been disputed by trade data, which shows Japan purchased $298 million worth of rice from the US last year and $114 million worth between January and April this year.
The threat comes as trade talks between the US and Japan are ongoing, with Chief Cabinet Secretary Yoshimasa Hayashi confirming that the Japanese government is aware of Trump’s claim. Hayashi emphasized that Japan will continue to pursue “sincere and honest discussions” to achieve a mutually beneficial agreement.
Meanwhile, White House National Economic Council Director Kevin Hassett suggested that negotiations are still underway, stating, “Nothing is over… There’ll still be discussions right up till the end. Even if we get a framework, then there’s still gonna be things to finalize.”
A 2021 report by the Office of the United States Trade Representative noted that Japan’s highly regulated rice importation system limits US exporters’ access to Japanese consumers. This might be what Trump was referring to in his post. The US president has announced plans to send letters to foreign countries, including Japan, outlining potential new tariff rates.
Trump specifically mentioned Japan in a Fox News interview, saying, “Dear Mr. Japan, here’s the story: You’re going to pay a 25% tariff on your cars.” The July 9 deadline for Trump’s 90-day pause on “reciprocal” tariffs looms, leaving uncertainty about future tariff rates for impacted countries.
The Dow Jones Industrial Average rose 0.63% to 44,094.77, while the S&P 500 increased 0.52% to 6,204.95, and the NASDAQ Composite gained 0.47% to 20,369.73. The Fear & Greed Index stood at 66. As trade tensions escalate, the impact on markets, farmers, automakers, and consumers in both countries remains to be seen.