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Japan has mentioned it is not going to 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 light.
The feedback from Japan’s chief cupboard secretary Yoshimasa Hayashi on Tuesday got here as Donald Trump forged Japan, amongst different international locations, as “spoiled” and the newest spherical of commerce negotiations in Washington ended with out clear progress.
“We’re not excited about doing something that will sacrifice the farm sector,” Hayashi mentioned.
Weeks of negotiations have produced a lot of proposals aimed toward breaking a impasse, together with Japan shopping for extra US vitality and agricultural merchandise and new joint funding mechanisms for US manufacturing, based on individuals aware of the talks.
However none has succeeded at shifting the Trump administration’s dedication to decreasing its commerce deficit with Japan, which stood at $63bn for the Japanese monetary 12 months ending in March.
However in a put up on his Fact Social web site on Monday, Trump targeted his ire on rice.
“To indicate individuals how spoiled Nations have change into with respect to america of America, and I’ve nice respect for Japan, they gained’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 up to now 12 months, inflicting momentary shortages, enormous queues for cheaper rice and forcing the federal government to faucet its strategic rice reserve to offer aid.
Japanese rice manufacturing has for many years been an intensely political situation. The crop instructions an outsized nationwide significance and farmers have been a vital base of help for the long-ruling Liberal Democratic social gathering.
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 take care of Trump. However with either side dug in, the LDP now faces the chance of a marketing campaign for higher home elections on July 20 and not using a deal in place, based on individuals with direct information of negotiations. That may increase the chance for Prime Minister Shigeru Ishiba, who’s struggling low approval scores 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 straight and not directly employs greater than 5.5mn individuals, based on the Japan Car 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 quick time period gave the impression to be low and falling, mentioned 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 automobiles, whereas the Japanese “gained’t take our automobiles”.
Japan’s largest auto corporations have established massive manufacturing amenities within the US over a long time. Automotive and truck exports to the US totalled 1.37mn autos 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 autos to Japan, the place American automobile fashions are usually seen as too massive and gas consumptive.
“I may ship one [letter] to Japan: ‘Expensive Mr Japan, right here’s the story’,” Trump continued. “You’re going to pay a 25 per cent tariff in your automobiles.”
