By John Meyer, consultant in financial affairs – Eurasia Business News, July 2, 2025. Article no. 1589.

U.S. President Donald Trump has threatened to raise tariffs on Japanese goods to as high as 30% to 35% if a trade deal is not reached by the self-imposed July 9 deadline. He expressed skepticism about finalizing an agreement with Japan before that date and indicated he will not extend the current 90-day pause on tariffs. Instead, Trump plans to send letters to multiple countries, including Japan, informing them of the tariff rates they will face unless deals are struck.

Trump criticized Japan for not allowing US rice imports despite having a significant rice shortage and highlighted the trade imbalance in the automotive sector, where the US imports millions of Japanese cars but Japan does not take American cars in return. He described Japan as “very tough” and “spoiled” in trade negotiations and suggested the US would impose tariffs of 30%, 35%, or whatever rate his administration decides on.

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The tariffs Trump refers to would surpass the current 10% tariffs in place during negotiations and the 24% tariffs initially imposed in April but paused for 90 days. The administration is focusing on smaller, expedited trade deals ahead of the deadline, but if these fail, the higher tariffs will be reinstated.

In early June a Japanese company has paused construction of a $1.6 billion battery factory in South Carolina, intended to produce batteries for electric BMW vehicles, citing uncertainty around U.S. policies and tariffs as the main reason for the halt. 

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The U.S. and the European Union are reportedly close to reaching a deal on various non-tariff trade issues. These include regulations related to deforestation, the treatment of U.S. technology companies under EU rules such as the Digital Markets Act, carbon-based border tariffs, and shipbuilding, among others.

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© Copyright 2025 – Eurasia Business News. Article no. 1589.