With just over a week remaining before the United States is expected to implement higher tariffs on foreign car imports, President Donald Trump has publicly criticised what he describes as an unbalanced trade relationship with Japan.
In an interview aired on Fox News on 29 June, President Trump expressed frustration over the current state of automotive trade between the two countries. “So we give Japan no cars. They won’t take our cars, right? And yet we take millions and millions of their cars into the United States. It’s not fair,” he said.
The comments were made against the backdrop of ongoing trade talks, with Japanese negotiators visiting Washington in a last-ditch effort to avoid the imposition of a 25 per cent tariff on Japanese automobile exports to the United States. The deadline for the tariff increase is set for 9 July.
The president’s remarks reflect long-standing concerns within the Trump administration about the trade imbalance between the United States and Japan. Trump claimed that Japan had been made aware of his position and that the issue of the trade deficit had been clearly conveyed. “And I explained that to Japan. And they understand it. And we have a big deficit with Japan. And they understand that too,” he added.
Beyond vehicles, Trump hinted at the potential for Japan to increase imports of other American goods. “Now, we have oil. They could take a lot of oil. They could take a lot of other things,” he said, suggesting that Japan could diversify its imports from the United States to address the imbalance.
In a related development, Japan’s chief negotiator, Ryosei Akazawa, visited Washington last week for the seventh round of bilateral negotiations. According to a statement issued by the Japanese government on 29 June, Mr Akazawa held talks with US Commerce Secretary Howard Lutnick. The statement described the discussions as “fruitful” and noted that both sides had agreed to continue working towards a mutually beneficial agreement.
While both sides acknowledged progress, no concrete breakthrough was announced. It remains unclear whether a deal is imminent or if Japan will secure an exemption from the proposed across-the-board tariffs, which the Trump administration has labelled “reciprocal”.
In the Fox News interview, President Trump said the United States reserved the right to set trade terms unilaterally and indicated that formal notifications to key trading partners were forthcoming. “I’m going to send letters,” he said. “I could send one to Japan. ‘Dear Mr Japan, here’s the story. You’re going to pay a 25 per cent tariff on your cars.’”
The president’s phrasing – referring to the Japanese government as “Mr Japan” – was widely noted by observers, though it remained unclear whether the remark was offhand or intentionally symbolic of his broader approach to trade diplomacy.
The potential imposition of new tariffs comes at a particularly sensitive time for Japan’s automotive sector. On 13 May, Nissan Motor Co. announced an annual net loss of $4.5 billion and confirmed reports that it plans to cut 20,000 jobs globally. The figures underscore the broader challenges faced by Japanese automakers amid sluggish global demand and increasing production costs.
The United States remains a key market for Japanese carmakers, with firms such as Toyota, Honda, and Nissan all maintaining substantial manufacturing and sales operations in the country. A 25 per cent tariff would likely have significant implications for both Japanese exports and the US car market, potentially leading to higher prices for American consumers and supply chain disruptions.
Trade relations between the United States and Japan have experienced repeated tensions under President Trump, whose administration has pursued a policy of renegotiating bilateral trade arrangements perceived as disadvantageous to American interests. While earlier rounds of negotiation had focused on agricultural products and digital trade, the automotive sector has consistently remained a central point of contention.
The Japanese government has thus far refrained from issuing direct public criticism of the proposed tariffs, focusing instead on technical discussions. Tokyo is understood to be seeking a negotiated outcome that avoids new trade barriers, particularly in sectors where Japanese firms have high exposure to the US market.
With the 9 July deadline approaching, further meetings between US and Japanese officials are anticipated. However, with President Trump reiterating his administration’s willingness to act independently, it remains uncertain whether a compromise can be reached in time to avert the imposition of punitive tariffs.
As of 30 June, no official US government notice of tariff increases has been issued. However, based on the president’s comments, preparations are under way to initiate formal steps in the coming days, unless negotiations yield a last-minute agreement.
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