Thursday, May 22, 2025

Japan Plans to Boost Rice Exports Amid Tariff Disputes

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Japan’s agriculture ministry has announced a new strategy to address the country’s rice shortage by significantly boosting rice exports. The plan aims to export 350,000 tons of rice by 2030. This is nearly eight times the amount expected to be shipped out in 2024. The government views rice exports as an essential mechanism to prevent future domestic shortages.

Over the past few years, Japan has faced a steady decline in rice acreage, leading to reduced production. This has contributed to the current shortage and rising prices. In response, the government is shifting focus to rice production for export. This rice will serve as a backup during domestic shortages, helping to stabilize the market.

The plan will be included in the government’s five-year review of the basic food, agriculture, and rural areas policy. The council will receive the proposal this week, and the Cabinet is expected to approve it by the end of March. In 2024, Japan is projected to export 45,000 tons of rice, with an ambitious target of 1 million tons by 2040.

The nation’s demand for rice has been declining due to changing dietary preferences, such as an increase in noodle and bread consumption. The country’s shrinking population has further reduced domestic rice demand. With farmers leaving the industry, the government is encouraging alternative uses for rice, such as animal feed and exports.

Currently, rice exports make up less than 1% of Japan’s rice production. However, the government’s goal is to boost this number to about 5% by 2030. To keep rice affordable, the government will redirect rice from the export market to the domestic market during shortages.

Japan’s rice is expensive compared to other countries due to its high production costs. To ensure exports succeed, the government plans to promote Japanese rice overseas and reduce production costs through smart agricultural techniques and improved rice varieties.

While Japan works to expand rice exports, it is facing international criticism. The United States has raised concerns over Japan’s 700% tariff on rice imports. White House Press Secretary Karoline Leavitt criticized this tariff in a recent press conference. She highlighted that President Donald Trump values fair trade practices and may impose reciprocal tariffs on Japanese goods if the issue remains unresolved.

The ongoing tariff dispute could potentially impact Japanese industries, especially if the U.S. imposes higher tariffs on Japanese cars and other products. The situation remains fluid as both nations negotiate their trade policies.

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