Donald Trump
Threat directed at Tokyo at a week of the deadline that expires the suspension of tariffs. And “there is a lot of money to be spared” if they cut into “launches of rockets, satellites or production of electric cars,” warns Trump.
United States President Donald Trump threatened on Monday to impose new rates on Japan, while the White House signaled that it intends to complete commercial agreements with several partners after the July 4 holiday.
Trump’s latest onslaught against Tokyo appears just over a week from July 9the date on which he expires the suspension of higher rates on dozens of business partners, including Japan. Trump accused the country of refusing to accept US rice exports.
“They do not accept our riceand yet face a huge scarcity of rice, ”wrote the head of state on his social network, Truth Social.“ In other words, we will send them a letter. And we love having them as a commercial partner over many years, ”he added.
Tokyo suffered
Hassett stressed that, despite the president’s statements, the Conversations with Tokyo will continue. “Nothing is closed. I know what he published, but the discussions will continue to the end, ”he said.
Tokyo bags reacted negatively, with the Topix index falling up to 0.7% at the opening of the markets.
The scarcity of rice, quoted by Trump, has increased social discontent in Japan, in a context of cost of living crisis. Prices doubled last year, which led the Japanese government to release emergency reserves and to circumvent conventional distribution channels.
Although the measure has mitigated popular dissatisfaction, it caused Frictions with the agricultural sector – A traditional party electoral pillar in power. The eventual entry of US rice may alleviate the market, but may also be perceived as electorally sensitive assignment, less than three weeks from the elections for the Upper Chamber of the Japanese Parliament, scheduled for July 20.
This is not the first time that the Trump administration accuses Japan protectionism. In March, White House spokesman Karoline Leavitt said Tokyo imposes up to 700% tariffs on imported rice – An allegation denied by the Japanese government.
Japan is one of the most important commercial partners in the United States, and is therefore on the list of countries that Trump management considers eligible for negotiations.
The Secretary of Commerce, Howard Lutnick, said last week that the US government should complete agreements with about ten of the main US business partners, while the rest will receive formal notifications with new tariffs.
Negotiations between Washington and Tokyo have been extending for several months, without resolution of key questions about tariffs and commercial barriers. Japan has insisted on the withdrawal of 25% tariffs imposed on the automotive sectorarguing severely harm a crucial industry. But Trump has rejected the request, claiming that Japan matters very few vehicles produced in the US.
The country also faces a separate tariff of 24% over all exports to the United States, which was reduced to 10% during the business period.
Trump has sought to increase pressure on international partners before the deadline, threatening to interrupt negotiations and unilaterally impose customs tariffs.
The president suspended these measures in April, granting a period of 90 days to complete agreements. Since then, two general understandings have been announced with OAS.
White House National Economic Council Director Kevin Hassett also said on Monday that several agreements could be announced after Independence Day.
“Maybe people take an hour or two on the 4th to see the fireworks and then we get back to work. Let’s start announcing the frames [dos acordos]”He told Fox Business television channel. According to the official, the priority is the approval of the Trump administration tax and budgetary package in Congress.
Trump asks for “look” to musk companies
The threats extended to Trump’s former ally, Elon Musk.
On Tuesday, Trump suggested to the Department of Government Efficiency (Doge), previously allegedly led by the tycoon, to evaluate the subsidies that are being granted to companies of the richest man in the world-hours after criticizing the president’s fiscal plan.
“Electric cars are good, but not everyone must be forced to have one,” Trump shot on social networks. “Elon may have received more subsidies than any human being in history from afar, and, without subsidies, Elon would probably have to close the store and return home in South Africa. Without more launches of rockets, satellites or production of electric cars, our country would save a fortune. Maybe we should ask Doge to give a good and hard look at this? There is a lot of money to be spared! ”Wrote the president.
On Monday, Musk warned Republican congressmen for a possible Primary defeat next year if they support Trump’s fiscal and budgetary plan, which the US president intends to promulgate this week.
“For all members of Congress who campaigned to reduce government expenses and immediately voted for the largest increase in history in history, be ashamed. And they will lose your primaries next year, even if it is the last thing you do on Earth, ”wrote the CEO of Spacex and Tesla on his social network X.
