US President Donald Trump expressed skepticism about reaching a trade agreement with Japan before the July 9, 2025, deadline, when paused reciprocal tariffs are set to resume.
Trump’s comments signal heightened tensions, as he threatened to impose tariffs of 30 to 35 percent on Japanese goods if no deal is reached.
Japan’s economy, heavily reliant on exports to the US, faces significant risks, particularly for its automobile and electronics sectors.
Trump highlighted the US’s $69.4 billion trade deficit with Japan in 2024, emphasizing his intent to address it.
He claimed Japan does not purchase US rice or cars, though data shows Japan imported $354.7 million in US rice and $1.04 billion in US passenger vehicles between May 2024 and April 2025.
Japan’s chief trade negotiator, Ryosei Akazawa, plans to visit the US soon, but domestic pressures, including an upcoming election and agricultural concerns, complicate talks.
Japan holds over $1 trillion in US Treasury securities, giving it potential leverage in negotiations.
Prime Minister Shigeru Ishiba stressed Japan’s role as a major investor in the US, creating jobs, and vowed to protect national interests, particularly agriculture.
With the US as Japan’s largest export market, accounting for 19.1 percent of its exports in 2023, Japan faces tough choices as the tariff deadline approaches.