Trump threatens fresh tariffs on Japan over rice exports

Trump threatens fresh tariffs on Japan over rice exports

a trade tle between the US and Japan this time rice is on the table president Donald Trump’s warning of fresh tariffs threatens to upend negotiations uh days before country specific levies are set to resume mr trump accused Japan of not wanting to buy American grown grain even as the Asian country grapples with a rice shortage he also says Tokyo is importing too few American cars contrary to Mr trump’s claim the US does export some rice tariff-free to Japan under a World Trade Organization agreement tokyo set a levy on any imports beyond se,000 ton limit us data shows Japan bought nearly $300 million worth of US rice last year japan has also increased American imports to deal with nationwide rice shortages despite supply issues and pressure from Washington Tokyo is standing its grant saying it refuses to sacrifice its farmers for the sake of tariff exemptions nevertheless Japan like much of the rest of the world is racing to secure a deal with the US after the 90-day pause on tariffs as CNA’s Roland Lim explains there’s more than rice that’s at stake both sides are bracing for impact as negotiations falter over rice cars and even government bonds american farmers and Japanese consumers are caught in the middle global markets are skittish and the diplomatic strain between these longtime allies is showing american rice growers in particular frustrated last year the US exported nearly $300 million worth of rice to Japan and they had hoped for more president Donald Trump has vented on the truth social platform that Japan won’t take our rice and yet they have a massive rice shortage now he’s referring to the fact that Japanese stores have faced empty shelves and a 5 kg bag of rice currently costs around $30 more than double the price last year still Japan’s leaders are standing firm on protecting their farmers japan’s chief negotiator has repeatedly stated that agriculture is the foundation of the country in other words Tokyo won’t easily budge on rice a politically sacred crop that stance plays well with rural voters but it’s stalling the broader deal meanwhile autos remain a major flash point japan ship around 1.37 million cars to the US last year and those could soon face a crippling 25% US tariff if talks fail washington has been pressuring Tokyo to lower barriers for American farm goods in exchange for relief on auto tariffs now Japanese negotiations are desperate to shield their auto industry a pillar of their economy from those duties both nations know the stakes higher car tariffs would reverberate from Detroit to Nagoya’s factories the impass is unsettling global markets too japan holds a staggering $1.13 trillion in US Treasury bonds making it America’s biggest foreign creditor finance Minister Katsu Nou Katu pointedly remarked that Tokyo must put all cards on the table in negotiations and it could be among such cards hinting that Japan’s holdings in US treasuries is a bargaining chip a comment that shook markets mr carter later cautioned it was just a theoretical option so what happens next well the clock is ticking loudly towards July 9th that’s when the 90-day truce expires if no agreement is reached by then well the US is poised to jack up tariffs on Japanese cars to 25% and Japan has signaled it might hit back with its own 24% duties on US goods such an escalatory spiral would hurt economies and consumers in both countries

US President Donald Trump has warned Japan of fresh tariffs, days before country-specific levies are set to resume. He accused Japan of not wanting to buy US-grown rice, even as the Asian country grapples with a shortage of the grain. He added that Tokyo is importing too few American cars. Despite supply issues and pressure from Washington, Tokyo is standing its ground, saying it refuses to sacrifice its farmers for the sake of tariff exemptions. US data showed Japan bought nearly US$300 million worth of US rice last year. Roland Lim reports.