Trump hints at no trade deal with Japan by Aug 1 deadline
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The comments were made about a week after he threatened to impose a 25 per cent tariff on goods from Japan, effective from August.
PHOTO: REUTERS
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WASHINGTON - US President Donald Trump suggested on July 16 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 per cent 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,” Mr 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 per cent tariff on goods from Japan,
The country-specific rate under Mr Trump’s so-called reciprocal tariffs, which he set on July 7, is up from the 24 per cent he unveiled in early April.
Mr 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 longstanding 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.
Mr Trump unveiled sweeping tariffs on April 2, targeting dozens of countries with which the US 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 US auto tariff, which Mr Trump raised by 25 percentage points to 27.5 per cent in April on national security grounds.
US 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 Expo on July 19.
Although officials have said the purpose of his trip is not to discuss trade issues, Japanese Prime Minister Shigeru Ishiba is seeking to meet Mr Bessent, possibly on July 18 in Tokyo, according to Japanese government sources.
Japan’s chief tariff negotiator, Mr Ryosei Akazawa, who has frequently visited Washington, is expected to welcome the US delegation.
Mr Bessent’s visit comes just ahead of Japan’s House of Councillors election, with media polls indicating that Mr Ishiba’s ruling coalition is struggling to retain majority control in the Upper House.
Depending on the outcome of the election, the prospects for 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 US, including increasing imports of American corn and liquid natural gas.
Japanese officials said they will not finalise a trade deal with the US 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 July 15, Mr Trump said it would grant full market access to the US, but the South-east Asian country has not confirmed whether his claim is accurate. The terms of the deals with Indonesia and Vietnam remain largely unknown.
During a meeting with Bahrain’s Crown Prince Salman bin Hamad Al Khalifa in the Oval Office on July 16, in addition to referring to Japan, Mr Trump touted a forthcoming trade deal, telling reporters: “We have another one coming up, maybe with India.” KYODO NEWS
