U.S.-Japan Trade Tensions: Trump's Tariff Strategy

President Donald Trump has voiced his dissatisfaction with the ongoing trade negotiations between the U.S. and Japan, particularly targeting Japan's refusal to import American-grown rice amid their own shortages. Trump warned that higher tariffs could be imposed starting July 9, reverting to previously announced rates from April if negotiations don't progress positively.

Treasury Secretary Scott Bessent has indicated that while extensions on deadlines could be considered, the ultimate decision lies with Trump. Bessent noted the importance of reaching trade deals and the potential for existing tariffs to increase if partner countries fail to engage in negotiations sincerely.

Japan's chief negotiator, Ryosei Akazawa, stressed Japan's ongoing commitment to discussions, highlighting the adverse effects Trump's proposed autos tariff could have on their economy. Meanwhile, the European Union seeks to balance U.S. tariff demands with reductions in key sectors like pharmaceuticals, as similar terms were negotiated by Britain.

(With inputs from agencies.)