Trump threatens higher tariffs as US-Japan trade row deepens

US President Donald Trump has turned up the heat on trade talks with Japan, threatening sharply higher tariffs unless Tokyo makes new concessions on American exports. His remarks come as a crucial July 9 deadline approaches, raising fears of an escalation that could impact everything from rice to cars.

Trump complains about Japan’s rice imports

In a social media post on Monday, Trump criticised Japan’s reluctance to import American-grown rice despite what he called a “massive rice shortage” in the country. Writing on his Truth Social platform, he accused trading partners of becoming “spoiled” when dealing with the United States.

“I have great respect for Japan, they won’t take our RICE, and yet they have a massive rice shortage,” Trump said. He also indicated his administration would soon be sending formal notices to partners about the planned tariff increases, as per Reuters. This latest outburst follows his Sunday comments, in which he accused Japan of “unfair” trade practices in the automobile sector. Such remarks have become a hallmark of Trump’s second-term trade strategy, marked by tough rhetoric and an emphasis on what he calls fairer terms for American producers.

July 9 deadline looms for tariff hike

Trump’s administration had earlier imposed a temporary 10 per cent tariff rate on a broad range of imports. But those rates are set to snap back to much higher levels, between 11 and 50 per cent on 9 July if no new deals are finalised. Treasury Secretary Scott Bessent told Bloomberg Television that the White House would notify countries of these higher rates if negotiations stalled. He acknowledged that some countries were bargaining in good faith but insisted the threat of tariffs was needed to maintain pressure.

“We have countries that are negotiating in good faith, but they should be aware that if we can’t get across the line because they are being recalcitrant, then we could spring back to the April 2 levels. I hope that won’t have to happen,” Bessent said, as quoted by Reuters. Despite the tough talk, Bessent has hinted at flexibility. Earlier this month he floated the idea of extending the deadline for countries actively negotiating with Washington, although he emphasised only Trump would make that call.

Japan warns of impact on its auto industry

Japan’s main trade negotiator, Ryosei Akazawa, signalled on Monday that Tokyo was committed to continuing discussions with Washington while protecting its own interests. He specifically warned that the resumption of Trump’s 25 per cent tariff on Japanese autos would deal a serious blow to Japan’s economy.

“We will continue working with the US to reach a trade agreement while defending Japan’s national interest,” Akazawa said, as per Reuters. Autos remain one of the most sensitive sectors in US-Japan trade, with past negotiations frequently bogging down over market access and tariff rates.

EU eyes deal to avoid steep tariffs

While Japan faces tough demands, another major US trading partner, the European Union, is also trying to navigate the looming tariff threat. According to Bloomberg News, the EU is willing to accept a 10 per cent baseline tariff on its exports to the US in exchange for American commitments to lower tariffs in key industries such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft.

Reuters reported that European officials are increasingly resigned to this 10 per cent level as the baseline for any reciprocal deal. The UK previously agreed to similar terms, securing tariff stability on autos while gaining special access for aircraft engines and beef.

A familiar hardline Trump strategy

Trump’s latest trade offensive echoes his first-term approach: using the threat of tariffs to force concessions from allies and rivals alike. While his administration says it is simply fighting for American workers and producers, critics warn the strategy risks destabilising trade flows and hurting key industries on both sides.

As the 9 July deadline approaches, trading partners will be under pressure to strike last-minute deals. The outcome will likely define the next phase of America’s complex trade relationships and could have significant implications for global supply chains, prices, and diplomatic ties.

(With inputs from the agencies)