Rice Issue Halts Progress in US-Japan Negotiations

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TEMPO.CO, Jakarta - Negotiations between the United States and Japan on tariffs seem to have reached a deadlock. U.S. President Donald Trump is pessimistic about reaching a new trade agreement with Japan.

While aboard the presidential plane Air Force One, Trump told reporters that he is unsure whether they will reach an agreement with Japan.

Reported by Antara on July 2, 2025, he described Japan as a trade partner that is "very tough" in negotiations. However, according to Trump, the Land of the Rising Sun is "in great need" of rice. Yet, he said Japan won't take rice or the other products the U.S. has.

Trump's strong statement was made amid the deadlock in ministerial-level trade negotiations between the two countries. He openly expressed his disappointment with Japan's reluctance to open its market for the export of automobiles and rice from the U.S.

The U.S. offered rice to Japan because the country is facing supply difficulties. However, Trump claimed that Japan rejected importing rice from the U.S. According to CNN, Trump's claim is completely untrue. According to data from the U.S. Census Bureau, Japan purchased $298 billion worth of rice from the U.S. last year. From January to April of 2025, Japan purchased $114 million worth of rice from the U.S.

Trump emphasized that he will not extend the July 9 deadline for countries negotiating trade agreements with the U.S. He is not thinking about a break. He will write a letter to many countries.

Trump threatened to increase import duties on Japanese products. The Japanese government chose not to directly respond to Trump's statement, which mentioned a possibility of a 30 or 35 percent increase in tariffs on Japanese goods. The 90-day grace period for the reciprocal tariff policy itself will end on July 9.

In a press conference, Cabinet Secretary Deputy Kazuhiko Aoki stated that Japan remains committed to the negotiation process. He said that on Wednesday, July 2, the country hopes to reach a mutually beneficial agreement through sincere discussions.

The U.S. government has imposed tariffs on various imported products, including cars, spare parts, steel, and aluminum. Although the suspension of reciprocal tariffs will last three more months, the basic tariff of 10 percent has officially been applied.

This policy is a major setback for Japanese automakers like Toyota Motor Corp. and Honda Motor Co. A 25 percent import tax on vehicles entering the U.S. threatens their income, considering the American market is one of the largest.

Trump openly uses tariffs as a weapon to pressure his country's trade deficit with Japan. However, the effort has not yielded results. The meeting between Trump and Japanese Prime Minister Shigeru Ishiba in mid-June failed to reach a consensus. They disagreed on the direction of trade cooperation.

Japan hopes that Washington will reconsider its tariff policy and pave the way for a mutually beneficial agreement. In an ideal scenario, the agreement would be accompanied by a commitment to increase Japanese investment in the U.S. However, so far, the negotiations have hit a deadlock.

In Tokyo, ahead of the parliamentary elections scheduled for July 20, the Japanese government emphasized that it will not act hastily. Both Ishiba and chief negotiator Ryosei Akazawa stated that they will not sacrifice national interests, especially the protection of the agricultural sector, to expedite an agreement with the U.S.

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