US President Donald Trump has reignited trade tensions with Japan as he threatened to impose higher tariffs on the country over its alleged unwillingness to buy America-grown rice and to stop trade talks.
“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 lashed out at Japan on his Truth Social post.
Despite rice shortage, Trump has claimed that Japan won’t purchase enough American rice. This move is a part of the US president’s larger strategy, which emphasises the use of tariffs to lower the US trade deficit with nations like Japan and promote what he refers to as “fair” trade. With a crucial deadline approaching on July 9, Trump’s 90-day pause on “reciprocal” tariffs will expire.
Trump’s reference to rice was unclear at first because, according to U.S. Census Bureau data, Japan imported at least $298 million worth of US rice in 2024. According to CNN, Trump’s criticism was directed at Japan’s heavily regulated rice import system, which the Biden administration found hindered American exporters’ ability to effectively reach Japanese consumers.
“Japan’s highly regulated and nontransparent system of importation and distribution for rice limits the ability of US exporters to have meaningful access to Japan’s consumers,” according to a 2021 report released by the Office of the United States Trade Representative under former President Joe Biden. That’s what Trump was talking about in his post, a source familiar with his thoughts told CNN.
However, it’s unclear if Japanese officials participating in the current trade talks between the two nations have declared their intention to stop purchasing rice from the US going forward. Although he declined to comment, chief cabinet secretary of Japan, Yoshimasa Hayashi said on Tuesday that the Japanese government is aware of Trump’s claim and that trade negotiations between the two countries are still in progress.
“While we refrain from disclosing the specifics of our discussions with the US, Japan will continue to vigorously pursue sincere and honest discussions with the aim of achieving an agreement that will benefit both Japan and the US,” he said.
Meanwhile, following the pause of his April “reciprocal” tariffs on US trading partners, Trump has stated that his government intends to write to a few foreign nations informing them of their potential new tariff rates.
Additionally, he named Japan as one of the potential recipients of a letter in an interview with Fox News’ Maria Bartiromo “Sunday Morning Futures.”
“Dear Mr. Japan, here’s the story: You’re going to pay a 25% tariff on your cars,” he said. Trump was mocked ruthlessly on social media for calling the Japanese Prime Minister Shigeru Ishiba “Mr. Japan.”
It’s unclear what will happen to tariff rates for the dozens of impacted countries after the July 9 deadline expires.
Japanese exports were briefly subject to a minimum tariff of 24% prior to Trump’s announcement of the pause. They have been subject to the universal 10% ever since the pause took effect.
Kevin Hassett, the director of the White House National Economic Council, hinted on Monday that talks with Japan are still going on.
“Nothing is over. I know what he just posted, but 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,” he said speaking to reporters.