Trump warns of steep tariffs on Japan as trade talks stall

US President Donald Trump on Tuesday said a trade agreement with Japan was unlikely before the July 9 deadline, threatening to impose tariffs as high as 30 to 35 percent on Japanese imports if a deal is not reached.

Speaking to reporters aboard Air Force One, Trump criticized Japan for its resistance to importing US rice and cited an ongoing imbalance in automobile trade between the two countries.

“I’m not sure we’re going to make a deal,” he said. “I doubt it with Japan, they’re very tough.”

In April, Trump imposed a 10 percent tariff on most imports, while temporarily pausing higher rates for countries engaged in negotiations. That pause expires on July 9, potentially triggering steeper tariffs on countries that haven’t finalized agreements with Washington.

So far, the U.S. has only reached two new trade pacts—one with Britain and a temporary deal with China to reduce mutual tariffs.

Trump said he plans to write to Japan demanding they “pay a 30 percent, 35 percent or whatever the number is that we determine,” pointing to what he called an unfair trade deficit with Tokyo.

“It’s very unfair to the American people,” he added.

Japan, one of Washington’s closest allies and the largest foreign investor in the U.S., currently faces the standard 10 percent baseline tariff, along with higher duties on cars, steel, and aluminium.

Ryosei Akazawa, Japan’s trade envoy, said in Washington last month that while some progress had been made in the fifth round of talks, no agreement has yet been reached.