WASHINGTON: United States President Donald Trump threatened on Monday (Jun 30) to send Tokyo a letter with a new tariff rate, days before a deadline where higher levies will restart for dozens of trading partners including Japan.
Trump’s comments on social media – over what he called Japan’s reluctance to accept US rice exports – came after his top economic advisor separately signalled plans to finalise deals with countries in the coming days.
“I have great respect for Japan, they won’t take our RICE, and yet they have a massive rice shortage,” Trump wrote on his Truth Social platform.
“In other words, we’ll just be sending them a letter, and we love having them as a Trading Partner for many years to come,” he added.
Earlier this month, Trump said he would inform other countries of unilateral US tariff rates by sending letters to tell them “what the deal is”.
A trade association for the US rice industry said on its website that Japan is the United States’ second biggest milled rice export market in volume.
While Trump imposed a sweeping 10 per cent tariff on imports from most trading partners in April, he unveiled – then paused – higher rates on dozens of economies to allow room for negotiations.
This pause expires Jul 9, meaning the elevated rates are due to kick in next week if countries fail to reach agreements with Washington to avert them.
To date, only two pacts have been announced. One was a broad framework with the United Kingdom and the other, a deal to temporarily lower steep tit-for-tat duties with China.
Earlier Monday, National Economic Council director Kevin Hassett told CNBC that Washington had a “double digit” number of pacts, including frameworks, nearing agreement.
He said that as soon as a major package on tax relief and spending cuts is passed, he expects a “marathon session” to discuss the tariffs with Trump and decide on rates for countries.
Lawmakers have been hoping to get the mega-bill to Trump’s desk by Jul 4.
Source: CNA
