U.S. President Donald Trump signaled that a trade agreement with Japan is unlikely before the July 9 deadline, raising the possibility of steep new tariffs on Japanese imports. Speaking aboard Air Force One, Trump expressed frustration over Japan’s resistance to importing U.S. rice and the ongoing imbalance in auto trade.
“I’m not sure we’re going to make a deal,” Trump told reporters. “I doubt it with Japan, they’re very tough.” He added that if no deal is reached, he plans to demand tariffs of “30 percent, 35 percent or whatever the number is” on Japanese goods, citing a persistent trade deficit with Tokyo as “very unfair to the American people.”
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The warning comes ahead of the expiration of a temporary pause on elevated tariffs, initially imposed in April at 10% on most trading partners. That grace period ends July 9, after which higher rates will automatically come into force for nations that haven’t secured deals with Washington.
So far, the U.S. has announced only two agreements — a broad framework with the UK and a temporary easing of trade tensions with China. Japan, despite being one of America’s closest allies and its largest investor, remains under the 10% tariff baseline as well as additional levies on automobiles, steel, and aluminum.
Japan’s trade envoy Ryosei Akazawa acknowledged some progress during the fifth round of talks last month but admitted that “a point of agreement” had yet to be reached. With the deadline fast approaching, the threat of a major escalation in trade tensions between the two economies looms large.
