Trump signals the end of the road for Japan tariff negotiations
'The letters are a deal,' Trump told reporters on Tuesday at Joint Base Andrews in Maryland, with U.S. Commerce Secretary Howard Lutnick standing by his side.
'I will veer from those deals on occasion when somebody is willing — like if Japan would open up their country," he added. "They don't do that. They just don't do that. And I don't subscribe to it one way or the other.
'So, we might just stick with a letter.'
Trump suggested in his comments that South Korea might be close to making a deal that would supersede the tariff letter sent to its president. South Korea's Aug. 1 reciprocal rate, as outlined in its letter, is also set at 25%.
Additional tariffs on pharmaceutical products might be imposed as soon as the end of July, Trump added while speaking to reporters on the tarmac.
On Wednesday morning in Tokyo, Deputy Chief Cabinet Secretary Kazuhiko Aoki declined to comment on Trump's remarks.
The U.S. president sent letters to dozens of countries notifying them of the reciprocal tariff rate to be imposed on their goods from Aug. 1. These rates will apply to almost all exports to the United States and replace a 10% baseline rate now being charged.
Reciprocal tariffs will not be charged on goods subject to separate sector-specific tariffs, which include a 25% duty on vehicles and auto parts and a 50% duty on steel and aluminum.
Tariff talks between the United States and Japan have been intense but fruitless, with no concrete results being reported in three months of negotiations. The two sides have remained far apart.
Public comments have indicated that they might not have even agreed on a starting point for talks, with Japan insisting on a rollback of tariffs already imposed as a precondition for discussions and the United States insisting that only the reciprocal tariffs were on the agenda.
Tokyo has been especially focused on the duty being imposed on autos and has said that this remains its top priority.
Trump criticized Japan on a number of occasions in recent weeks, saying that it's 'tough' and 'spoiled' and that it has refused to buy American products, especially rice and cars. At one point, he suggested that he would end trade talks and simply raise the tariff rate on Japanese goods to as high as 35%.
Upper House elections will be held in Japan on Sunday, and polls indicate that the race could be close. Ishiba has been under considerable pressure to hold the line in talks with the United States and could continue to face pressure after the vote if new coalition partners are needed to govern.
U.S. Treasury Secretary Scott Bessent, who was appointed by Trump to lead negotiations with Japan in April, is set to visit the 2025 Osaka Expo this weekend. He might hold a meeting with Ishiba during the trip, according to news reports.
Ryosei Akazawa, Japan's chief tariff negotiator, on Tuesday declined to confirm a meeting with Bessent or any planned meetings on trade with the United States.
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