Trump Threatens 30-35% Tariffs on Japan as July 9 Trade Deadline Looms

President Donald Trump has declared he is "not thinking about extending the July 9th deadline" for ongoing trade negotiations, simultaneously expressing significant doubt about reaching a new agreement with Japan. "I doubt we'll have a deal with Japan," Trump stated, signaling a potential escalation of tariffs on Japanese imports, as reported by The Kobeissi Letter. This firm stance comes as a 90-day pause on previously imposed "reciprocal" tariffs is set to expire.

The July 9 deadline marks the conclusion of a 90-day suspension of country-specific "reciprocal" tariffs that Trump initially announced on April 2. These duties, which had ranged from 11% to 50% on goods from most U.S. trading partners, were temporarily reduced to a 10% baseline to facilitate bilateral negotiations. The impending expiration has spurred intense diplomatic efforts, with many nations striving to finalize agreements to avert the reintroduction of higher levies.

Trump's skepticism regarding a trade deal with Japan stems from persistent grievances, particularly concerning the imbalance in auto trade and Japan's reluctance to import U.S. rice. He suggested that Japan could face tariffs of "30%, 35% or whatever the number is that we determine," significantly exceeding the 24% rate initially proposed in April. Japanese officials have maintained a cautious approach, with chief trade negotiator Ryosei Akazawa emphasizing the need for a comprehensive agreement that addresses both reciprocal and sectoral tariffs.

While negotiations with Japan appear stalled, the administration has indicated progress with other nations. Treasury Secretary Scott Bessent noted that an interim deal with India is reportedly nearing completion, and the UK and China have already secured preliminary agreements. However, Trump's unpredictable approach has introduced market volatility, with U.S. stocks experiencing pullbacks following his latest remarks, and the yen strengthening against the dollar. The president's strategy includes sending "letters" to countries that fail to secure a deal, notifying them of their new tariff rates.

The approaching deadline has generated widespread uncertainty in global trade relations. Trade experts suggest that while some "mini deals" or frameworks might materialize, the administration's ambitious goal of "90 deals in 90 days" appears far from being realized. The potential re-imposition of higher tariffs could substantially increase import costs, disrupt global supply chains, and impact various economic sectors, raising concerns among businesses and international partners about the long-term stability of trade.