Friday, May 23, 2025

Japan Eyes Boost in U.S. Rice Imports to Avoid Tariff Clash

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Japan may approve a boost in U.S. rice imports as part of ongoing trade talks with Washington, according to informed sources. Government officials are exploring this move to ease the impact of higher tariffs the U.S. recently imposed.

One key proposal suggests raising the annual quota for American rice from 350,000 tons to around 410,000 tons. This potential boost in U.S. rice imports remains within Japan’s global tariff-free rice quota of 770,000 tons.

Japan has historically shielded its rice sector in trade deals. However, officials now believe some compromise is essential to maintain favorable access to U.S. markets.

Domestic pressure also influences this decision. Rising rice prices in Japan have triggered growing public demand for affordable imported rice. Even with recent government stockpile releases, the market continues to feel the pressure of reduced supply.

Officials argue that the additional 60,000 tons from the U.S. still fits within Japan’s minimum access commitment under international agreements. Therefore, this limited boost in U.S. rice imports may not severely affect local farmers.

However, expanding the quota too far could lower rice prices and reduce farmers’ earnings. Many rural producers remain cautious about these developments.

Economic revitalization minister Ryosei Akazawa, who leads the negotiations, plans a second meeting with U.S. officials later this month. Akazawa, a key figure close to Prime Minister Shigeru Ishiba, aims to resolve tensions swiftly.

Currently, Japan charges a tariff of 341 yen (around $2.40) per kilogram for imported rice that exceeds the quota. This policy has drawn criticism from the U.S., especially as rice prices in Japan surged by 92.1 percent in March year-over-year.

The Agriculture Ministry forecasts Japan’s rice production for 2024 to reach about 6.83 million tons. Still, this output may not fully meet rising demand.

Meanwhile, the U.S. administration under Donald Trump continues to pressure Japan to ease broader trade restrictions. These include non-tariff barriers like auto regulations and rice distribution systems.

Trump previously criticized Japan for imposing what he called a “700 percent tariff” on rice, sparking backlash from Japanese officials. Agriculture minister Taku Eto rejected this claim, calling it “incomprehensible.”

As negotiations move forward, the government must balance trade priorities with domestic agriculture concerns. A carefully managed boost in U.S. rice imports could help ease tensions without overwhelming Japan’s farmers.

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