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Trump hints at no trade deal with Japan by Aug. 1 deadline
MAINICHI
| Juli 17, 2025
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WASHINGTON (Kyodo) -- U.S. President Donald Trump suggested Wednesday that striking a trade deal with Japan by the Aug. 1 deadline he has set to wrap up bilateral talks will be difficult, and that a tariff of 25 percent will be applied to goods from the Asian country.
"We're negotiating with them. But I think probably we will live by the letter with Japan," Trump told reporters at the White House, referring to his recent notification of new tariff rates to trading partners by letter.
The comments were made about a week after he threatened to impose a 25 percent tariff on goods from Japan, effective next month.
The country-specific rate under Trump's so-called reciprocal tariffs, which he set on July 7, is up from the 24 percent he unveiled in early April.
Trump's announcement of the slight increase came as he has ratcheted up pressure on Japan to concede in the ongoing negotiations, often restating his long-standing accusation that the country has been reluctant to import American cars and agricultural products.
Japan was among the more than 20 trading partners to which he sent letters last week, unilaterally informing them of their new tariff rates.
Trump unveiled sweeping tariffs on April 2, targeting dozens of countries with which the United States runs trade deficits, before pausing them for 90 days to provide time for talks.
But the Trump administration has extended the pause to Aug. 1 amid little progress in its talks with those major trading partners, including Japan, South Korea and the European Union.
With Tokyo, a major sticking point has been the U.S. auto tariff, which Trump raised by 25 percentage points to 27.5 percent in April on national security grounds.
U.S. Treasury Secretary Scott Bessent, the administration's point man on tariff negotiations, is scheduled to head a presidential delegation to Osaka to attend the World Exposition in the Japanese city on Saturday.
Although officials have said that the purpose of Bessent's trip to Japan is not to discuss trade issues, Japanese Prime Minister Shigeru Ishiba is seeking to meet with Bessent, possibly on Friday in Tokyo, according to Japanese government sources.
Japan's chief tariff negotiator, Ryosei Akazawa, who has frequently visited Washington, is expected to welcome the U.S. delegation.
Bessent's visit comes just ahead of Japan's House of Councillors election, with media polls indicating Ishiba's ruling coalition is struggling to retain majority control in the upper house.
Depending on the outcome of the election, the prospects for the negotiations between Tokyo and Washington could dim further if there is less room for compromise.
The Japanese government has presented a set of proposals aimed at reducing its trade surplus with the United States, including increasing imports of American corn and liquid natural gas.
Japanese officials said they will not finalize a trade deal with the United States if the higher auto tariff remains in place.
But the Trump administration has shown no signs of budging on the new rate, which has already taken effect.
So far, the administration has sealed trade deals with only three countries -- Britain, Vietnam and Indonesia.
When announcing the agreement with Indonesia on Tuesday, Trump said it would grant full market access to the United States, but the Southeast Asian country has not confirmed whether his claim is accurate. The terms of the deals with the two Southeast Asian countries remain largely unknown.
During a meeting with Bahrain's Crown Prince Salman bin Hamad Al Khalifa in the Oval Office on Wednesday, in addition to referring to Japan, Trump touted a forthcoming trade deal, telling reporters, "We have another one coming up, maybe with India."
He also said the administration has set a tariff rate that will apply to about 150 countries that are not involved in bilateral negotiations and that have relatively low trade volumes with the United States, with the countries to be informed of the new rate shortly.
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