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Japan has stated it won’t sacrifice its farmers to safe tariff exemptions from the US, as Tokyo and Washington hardened their positions in a rice diplomacy stand-off and hopes of an imminent commerce deal between the allies pale.
The feedback from Japan’s chief cupboard secretary Yoshimasa Hayashi on Tuesday got here as Donald Trump solid Japan, amongst different international locations, as “spoiled” and the most recent spherical of commerce negotiations in Washington ended with out clear progress.
“We aren’t interested by doing something that may sacrifice the farm sector,” Hayashi stated.
Weeks of negotiations have produced various proposals aimed toward breaking a impasse, together with Japan shopping for extra US power and agricultural merchandise and new joint funding mechanisms for US manufacturing, in line with individuals aware of the talks.
However none has succeeded at shifting the Trump administration’s dedication to lowering its commerce deficit with Japan, which stood at $63bn for the Japanese monetary 12 months ending in March.
In a put up on his Fact Social web site on Monday, Trump targeted his ire on rice.
“To point out individuals how spoiled Nations have change into with respect to the US of America, and I’ve nice respect for Japan, they received’t take our RICE, and but they’ve a large rice scarcity,” wrote Trump.
The mix of a poor harvest and coverage have pushed rice costs to more than double prior to now 12 months, inflicting momentary shortages, big queues for cheaper rice and forcing the federal government to faucet its strategic rice reserve to supply reduction.
Japanese rice manufacturing has for many years been an intensely political problem. The crop instructions an outsized nationwide significance and farmers have been a vital base of help for the long-ruling Liberal Democratic celebration.
The US exports some rice tariff free to Japan beneath a World Commerce Group “minimal entry” settlement, however Japan imposes a levy on any imports past a 770,000 tonne restrict.
Tokyo had initially hoped for a fast-track commerce cope with Trump. However with either side dug in, the LDP now faces the chance of a marketing campaign for higher home elections on July 20 with no deal in place, in line with individuals with direct data of negotiations. That can increase the danger for Prime Minister Shigeru Ishiba, who’s struggling low approval rankings and has a comparatively fragile maintain on parliament.
It additionally comes as clouds are gathering over a Japanese economic system that relies upon closely on its automobile trade. The nation’s automotive trade immediately and not directly employs greater than 5.5mn individuals, in line with the Japan Vehicle Producers’ Affiliation.
Tokyo has consistently demanded a full exemption from Washington’s blanket 25 per cent tariff on automotive imports, in addition to the revocation of the 24 per cent “reciprocal” tariffs that Trump has threatened to impose on Japan. These levies have been paused till a July 9 deadline to signal a commerce deal.
However Japan’s possibilities of securing any tariff exemption within the brief time period seemed to be low and falling, stated two individuals near discussions.
In an interview with Fox Information final weekend, Trump bemoaned the “unfair” buying and selling relationship in blunt phrases, claiming that the US “[takes] hundreds of thousands and hundreds of thousands” of Japanese vehicles, whereas the Japanese “received’t take our vehicles”.
Japan’s largest auto firms have established giant manufacturing services within the US over a long time. Automotive and truck exports to the US totalled 1.37mn automobiles in 2024, with the automotive sector representing about 28 per cent of Japan’s items exports to the US.
The US, in flip, exports few automobiles to Japan, the place American automobile fashions are usually seen as too giant and gas consumptive.
“I might ship one [letter] to Japan: ‘Pricey Mr Japan, right here’s the story’,” Trump continued. “You’re going to pay a 25 per cent tariff in your vehicles.”
