WASHINGTON -- U.S. President Donald Trump said Tuesday that he doubts a trade deal with Japan can be reached before the July 9 deadline, suggesting that tariffs on Japanese imports could rise to 30% or 35%.
Speaking to reporters aboard Air Force One, Trump criticized Japan for not accepting imports of U.S. rice, as well as the imbalance in auto trade between the two countries.
"I'm not sure we're going to make a deal," he said. "I doubt it with Japan, they're very tough."
A White House official also revealed on Tuesday that the Trump administration will put negotiations with Japan on the back burner. Negotiations with other trading partners, such as India, will take priority.
India is among the countries expected to receive priority in tariff talks. Trump set the July 9 deadline for negotiations, with plans to reimpose "reciprocal" tariffs after a 90-day pause.
The Japanese government has continued to request a complete exemption from automobile tariffs, but Trump once again expressed his intention to maintain automobile tariffs and dissatisfaction with the trade deficit with Japan, making the negotiations tougher.
Immediately after imposing reciprocal tariffs in April, the Trump administration suspended country specific surcharge rates for 90 days, a pause that will end on July 9.
If Japan's suspension is not extended, Japanese goods will face a total tax of 24%, consisting of a 14% surcharge and a 10% baseline rate, according to the April announcement.
Trump appears to be putting pressure on Japan by proposing an even higher tax rate.
Japan's point man on American trade negotiations, Ryosei Akazawa, went to Washington in late June for his seventh round of talks, but returned home without meeting with Treasury Secretary Scott Bessent, the person in charge of the negotiations on the American side.
