Trade Tensions: Trump Threatens 35% Tariff On Japanese Imports

US President Donald Trump said on Tuesday a trade deal with Japan was unlikely before the July 9 deadline, threatening to raise tariffs on Japanese imports to 30 or 35 per cent.

Speaking to reporters aboard Air Force One, Trump criticised Japan's reluctance to accept imports of US rice, as well as the imbalance in auto trade between the two countries.

"I'm not sure we're going to make a deal," Trump said. "I doubt it with Japan, they're very tough."

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 July 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 Britain and the other a deal to temporarily lower steep tit-for-tat duties with China.

Trump said he was going to write a letter to Japan, asking them to "pay a 30 per cent, 35 per cent or whatever the number is that we determine" because of the "big trade deficit" with Tokyo.

"It's very unfair to the American people," he said.

Japan, a key US ally and its biggest investor, is subject to the same 10 per cent baseline tariffs imposed on most nations plus steeper levies on cars, steel and aluminium.

Ryosei Akazawa, Tokyo's trade envoy, told Japanese reporters in Washington last month that some progress had been made during a fifth round of talks with the United States.

However, he added: "We've not been able to find a point of agreement yet".

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