Sunday, August 31, 2025

Trade Tensions Escalate as Trump Threatens Japan with Harsh Tariffs

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U.S. President Donald Trump has reignited trade tensions escalate by proposing massive new tariffs on Japanese goods. On Tuesday, he suggested imposing duties as high as 30% or 35%, calling Japan “very spoiled” in a sharp critique of their trade relationship.

Speaking aboard Air Force One, Trump expressed doubts about reaching a trade deal. “I’m not sure we’re going to make a deal. I doubt it,” he told reporters. He accused Japan of unfair practices, claiming it has “ripped us off for 30, 40 years.”

Despite praising the long-standing U.S.-Japan alliance, Trump insisted Tokyo must change. “When it comes to trade, they’ve been very unfair,” he said. “Those days are gone.” He even threatened to send Japan a blunt letter demanding higher tariffs.

The president ruled out extending a 90-day tariff freeze set to expire on July 9. This pause was meant to ease negotiations, but Trump now seems ready to act. A White House official confirmed Japan remains a key concern, especially over rice and auto trade barriers. Currently, Japan faces a 24% tariff under Trump’s “Liberation Day” policy. Additional auto tariffs have already hurt Japanese carmakers, who account for nearly 30% of exports to the U.S.

Prime Minister Shigeru Ishiba and trade negotiator Ryosei Akazawa have urged Washington to drop the tariffs. However, recent talks made little progress. Akazawa’s four-day trip to Washington ended without a breakthrough, and he failed to meet key U.S. trade officials. Trump claims to like Ishiba personally but remains firm on trade. “I really like the new prime minister,” he said, yet insists Japan must accept tougher terms.

With trade tensions escalate, Japan faces a critical decision. Will it concede to U.S. demands, or will Trump follow through on his threats? Either way, the fallout could reshape economic ties between the two nations. For now, businesses brace for higher costs, while diplomats scramble to prevent a full-blown trade war. As July 9 approaches, all eyes remain on whether trade tensions escalate further—or if cooler heads will prevail.

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