Trump is threatening Japan with tariffs up to 35% over trade imbalance and rice refusal. Calls Japan “spoiled” and says they won’t take U.S. rice despite shortages.

President Trump is turning up the heat on Tokyo. With the July 9 tariff deadline closing in, he’s made it clear that Japan could face new duties of 30% to 35% on exports to the United States. The warning came during a press briefing and was later echoed on Truth Social, where Trump accused Japan of refusing to accept American rice despite facing a domestic shortage. He also pointed to the $68.5 billion trade deficit with Japan in 2024, calling the imbalance “very unfair to the American people.”

The rice issue is not symbolic. Japan imported $298 million worth of U.S. rice last year, but Trump says that’s not enough. He claims Japan “desperately needs rice” but won’t take it, and has suggested that their refusal is part of a broader pattern of trade resistance. The president’s frustration is compounded by Japan’s auto exports, which make up 20% of their total exports and account for over 5.5 million jobs. Trump says Japan sells “millions and millions” of cars in the U.S. while rejecting American vehicles, calling the situation “not fair.”

Prime Minister Shigeru Ishiba responded by pledging to expand domestic demand and diversify export markets to shield Japanese industries. He also criticized American cars as “huge, fuel-inefficient, and hard to sell” in Japan, adding that his government would work with the U.S. to improve product compatibility. Ishiba’s administration is under pressure ahead of the July 20 upper house election, and the auto sector is central to Japan’s economy. Toyota alone flagged a $1.2 billion profit hit from tariffs in April and May. Honda expects a $4.5 billion impact this year.

Trump: ‘Japan won't take rice, and yet they desperately need rice, but they won't take rice. They won't take other products that we have. They need rice so badly, but they won't take rice’

Sounds like they won't take rice. pic.twitter.com/dNhSRBLfGn

— Chay Bowes (@BowesChay) July 2, 2025

Negotiations are ongoing. Japan’s top trade envoy Ryosei Akazawa has made multiple trips to Washington, but talks remain stalled. Trump says he’s ready to send a letter finalizing the tariff rate if no deal is reached. The current pause on reciprocal tariffs ends July 9. Japan is pushing for exemptions, especially on autos, steel, and semiconductors. Trump is holding firm. He wants more rice imports and a rebalancing of trade terms.

Japan's PM Ishiba: I will boost domestic demand and expand export destinations to protect Japanese industries if auto exports to the US are set to drop

— FinancialJuice (@financialjuice) July 2, 2025