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Trump Warns Japan of New Tariffs Over Rice Trade

by Daisy Mae D.
07/01/2025
in Tariffs & Duties

Former U.S. President Donald Trump has indicated he may impose higher tariffs on exports from Japan, citing concerns over Japan’s rice import practices and overall trade balance.

In a recent post on Truth Social, Trump claimed Japan is not purchasing sufficient quantities of American-grown rice despite experiencing a domestic rice shortage. “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 wrote.

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However, trade data shows Japan continues to import rice from the United States. According to the U.S. Census Bureau, Japan purchased approximately USD 298 million worth of American rice last year and has bought USD 114 million so far this year.

While there is no confirmation that Japanese officials have plans to halt U.S. rice imports, past reports have highlighted challenges American rice exporters face when accessing Japan’s market. A 2021 report from the Office of the United States Trade Representative noted that Japan’s rice import system remains highly regulated and not fully transparent, which can limit opportunities for U.S. producers.

A source familiar with Trump’s position stated that these regulatory barriers are the basis for his recent statements.

Trump has also suggested that his administration would send letters to certain countries outlining potential new tariff rates. In a recent Fox News interview, he singled out Japan as one of the countries that may receive such a notice, saying, “Dear Mr. Japan, here’s the story: You’re going to pay a 25% tariff on your cars.”

The comments come ahead of the July 9 deadline for a 90-day pause on reciprocal tariffs that Trump previously announced. During this pause, Japanese exports to the U.S. have been subject to a reduced universal tariff rate of 10%, compared to the minimum 24% rate that was briefly in place earlier.

White House National Economic Council Director Kevin Hassett stated that trade negotiations with Japan are ongoing. “Nothing is over,” Hassett told reporters, adding that discussions are expected to continue until the deadline and beyond if necessary.

The outcome of these talks could impact trade flows between the U.S. and Japan, particularly for key sectors such as automobiles and agricultural products.

#SupplyChainNews #TradePolicy #Tariffs #GlobalTrade #USJapan

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