Washington DC, July 2 (V7N) — US President Donald Trump has warned that his administration will impose 30% to 35% tariffs on Japanese exports if the US and Japan fail to reach a new trade agreement by next week. The proposed tariffs would significantly exceed the 24% tariffs introduced in April.

Trump had temporarily lowered tariffs on Japan and other major trading partners to 10% on April 2 to allow room for 90 days of negotiations. That deadline expires on July 9, and Trump has made it clear that he has no intention of granting an extension.

“We are in talks with Japan, but I am not sure that a deal will be made. I have my doubts,” Trump told reporters aboard Air Force One on Tuesday.

Japan’s response

Japanese officials have been cautious in responding. Deputy Chief Cabinet Secretary Kazuhiko Aoki told reporters on Wednesday:

“We are aware of President Trump’s statement, but we do not respond to every comment made by US officials.”

Previously, Chief Cabinet Secretary Yoshimasa Hayashi emphasized that Tokyo would not agree to any deal that would harm Japanese farmers.

Current tariffs

  • 10% tariff on most Japanese exports.

  • 25% tariff on Japanese automobiles and auto parts.

  • 50% tariff on steel and aluminum.

Implications

Analysts warn that failure to strike a deal could deal a serious blow to Japanese exporters, particularly in the automotive and steel sectors, and fuel further global trade tensions. The Trump administration’s aggressive tariff strategy has already rattled international markets.

What’s next?

With the deadline looming, all eyes are on Washington and Tokyo as negotiators race to bridge differences and avert another escalation in the ongoing trade disputes.

END/RH/AJ