Saturday, August 9, 2025

Tariff Negotiations with Japan: Trump Targets Auto and Agriculture Sectors

Date:

U.S. President Donald Trump has intensified tariff negotiations with Japan and other key trade partners. On Sunday, he announced that countries are shifting their positions rapidly. He emphasized his belief that new trade deals may arrive soon.

Trump highlighted Japan and the European Union while addressing the press at Joint Base Andrews. He accused Japan of blocking American cars and agricultural goods. Trump said, “Japan sells millions of cars to us. We sell them none. They won’t accept our cars or food.”

He stressed that countries are adjusting “very, very rapidly” in reaction to his firm trade stance. Trump believes this momentum may lead to breakthroughs in stalled talks.

Last week, Trump notified several trade partners of newly adjusted tariffs. For Japan, a new 25% tariff—up from April’s 24%—will start August 1. This country-specific tariff follows the administration’s pattern of reciprocal trade policies. It operates independently of broader sector-based duties on autos and steel.

While discussing the topic, Trump said the U.S. collected over $25 billion in tariffs last month. He credited the recent spike to tough new auto, steel, and aluminum tariffs. He noted that the real financial impact is still unfolding as specific tariffs begin.

Although Trump mentioned progress with the European Union, he criticized Japan’s resistance. “The European Union wants to open up,” he stated. “Japan, much less so.” The new rate for EU goods is now 30%, up from the previously announced 20%, also effective August 1.

He also spoke briefly about South Korea. Trump said they hope to avoid tariffs by offering a different type of trade deal.

In a dramatic move last Monday, Trump posted a signed letter to Japanese Prime Minister Shigeru Ishiba. The message appeared just before a 90-day suspension on country-specific tariffs expired.

Talks between Japan and the U.S. had broken down over the auto tariff. In April, Trump raised it by 25 percentage points to 27.5%.

Despite objections, the administration has not signaled any willingness to revise this rate.

Japan imposes zero tariffs on imported vehicles. Experts suggest the unpopularity of American cars in Japan is due to factors unrelated to trade barriers. European brands continue to perform well in the Japanese market.

Nevertheless, tariff negotiations with Japan remain a central focus of Trump’s trade strategy. He appears determined to change the trade landscape by applying escalating pressure.

As the August 1 deadline looms, tariff negotiations with Japan could define the next stage of global trade relations.

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