Trump "Japan to Face 25% Tariff as Stated in Letter"... Reintroduces Pressure Card

Donald Trump, the President of the United States, announced that he would send a letter imposing a single tariff of 10% or 15% on 150 countries with small trade volumes with the US.

He also stated that it is becoming difficult to conclude negotiations with Japan, and a 25% tariff will be imposed.

On the 16th (local time), Yahoo Finance and others reported that President Trump told reporters at the White House that he would notify the tariffs to be imposed by letter before the 1st of next month.

In an interview with Real America's Voice on the same day, President Trump said regarding these 150 countries, "They will probably be subject to 10% or 15%." In this interview, he gave the impression of not being interested in negotiations, considering the letter imposing a 30% tariff sent to the EU as if it had been concluded.

The New York Times (NYT) reported that the EU, in a last-minute negotiation effort, dispatched Maros Sefcovic, the trade commissioner, to the United States. The NYT reported that the EU hopes the US tariff threat will end as a negotiation tactic, but the atmosphere is not favorable. A day earlier, President Trump mentioned a letter sent to Ursula von der Leyen, the EU Commission President, stating that an agreement had already been reached, and even if the EU makes a better offer, Trump will not show interest, citing an interview with Treasury Secretary Scott Besant as the basis.

Meanwhile, regarding Japan, President Trump reiterated on the same day that it is becoming difficult to conclude negotiations by the 1st of next month, and a 25% tariff will be imposed as scheduled. President Trump has frequently criticized Japan for being reluctant to import American cars and agricultural products. Japan has proposed to the US to increase imports of American liquefied natural gas (LNG) and corn to reduce its trade surplus with the US. The Japanese government is poised not to agree to a final settlement unless the US lowers high tariffs on imported cars.

However, the Trump administration also shows no signs of lowering the 25% tariff on Japanese imports. Treasury Secretary Besant will lead a delegation sent by President Trump to visit Japan and attend the World Expo held in Osaka on the 19th. Although this visit to Japan is not intended for trade negotiations, there is a possibility of meeting Japanese Prime Minister Shigeru Ishiba on the 18th, a day before.

Currently, the US has concluded trade negotiations with the UK, Vietnam, and Indonesia.

Alicia Garcia Herrero, an economist for Asia-Pacific at the French investment bank Natixis, said that given the tariff rates announced by President Trump this time, it seems he has recognized that high tariffs will disrupt trade, and "small countries will accept it positively as the uncertainty clears with lower-than-expected tariffs."


jjyoon@fnnews.com Yoon Jae-jun Reporter