Updated 1 July 2025 at 20:58 IST
US President Donald Trump has sparked tension with Japan, a key U.S. ally, by threatening to impose higher tariffs on Japanese exports, claiming the country is unwilling to buy American-grown rice. The statement, made on Truth Social, comes as trade negotiations between the two nations remain unresolved, with a critical deadline looming. Despite Trump’s claims, data shows Japan is already a significant buyer of U.S. rice, raising questions about the motives behind his remarks.
In a recent Truth Social post, President Trump stated, “They won’t take our RICE, and yet they have a massive rice shortage. In other words, we’ll just be sending them a letter, and we love having them as a Trading Partner for many years to come.” He suggested that Japan’s reluctance to import more U.S. rice could lead to punitive tariffs, potentially escalating tensions between the two nations.
However, U.S. Census Bureau trade data contradicts Trump’s assertion. Last year, Japan purchased $298 million worth of American rice, and between January and April 2025, it imported an additional $114 million. Japan is one of the largest markets for U.S. rice, importing around 346,000 metric tons annually under a World Trade Organization (WTO) agreement that allows 770,000 metric tons of tariff-free rice imports each year, with nearly half coming from the US. Despite this, a 2021 report from the Office of the United States Trade Representative under President Joe Biden noted that Japan’s “highly regulated and nontransparent system of importation and distribution for rice” limits U.S. exporters’ access to Japanese consumers, a point Trump’s team has reportedly emphasized.
Trump’s tariff threats are part of a broader push to renegotiate trade deals with key partners. In April 2025, he imposed a 24% “reciprocal” tariff on most Japanese goods and a 25% tariff on automobiles, which was paused for 90 days to allow negotiations. Currently, Japanese exports face a universal 10% tariff, but without a deal by July 9, rates could revert to 24% or higher. In a Fox News interview, Trump singled out Japan’s auto industry, saying, “Dear Mr. Japan, here’s the story: You’re going to pay a 25% tariff on your cars.”
The auto sector is critical for Japan, accounting for nearly a third of its exports to the U.S., its largest market. A 25% tariff could severely impact Japan’s economy, prompting Prime Minister Shigeru Ishiba to call it a “national crisis.” Japan’s chief negotiator, Ryosei Akazawa, has been in talks with U.S. officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, but progress has been slow. On July 1, Chief Cabinet Secretary Yoshimasa Hayashi reiterated Japan’s commitment to the talks, saying, “While we refrain from disclosing the specifics of our discussions with the US, Japan will continue to vigorously pursue sincere and honest discussions with the aim of achieving an agreement that will benefit both Japan and the US.”
Rice is a sensitive issue in Japan, where it’s not just a staple food but a cultural and political symbol. The ruling Liberal Democratic Party (LDP) relies on rural farmers, who benefit from subsidies and strict import limits. With elections for the Tokyo assembly and Japan’s upper house looming in July 2025, the LDP is wary of making concessions that could anger its rural base. “The LDP government will fall if they lay their hands on rice,” an LDP member representing farmers told Nikkei Asia.
Despite this, Japan is considering increasing U.S. rice and soybean imports as a bargaining chip to reduce tariffs, particularly on autos. However, chief negotiator Ryosei Akazawa has emphasized that Japan will not sacrifice its agricultural sector, saying, “I have repeatedly stated that agriculture is the foundation of the nation.”
As the deadline nears, both sides must balance economic and political priorities.
Published 1 July 2025 at 20:58 IST