Japan won’t sacrifice farm sector for tariff deal after Trump’s rice complaints

Japan won’t sacrifice farm sector for tariff deal after Trump’s rice complaints

Tokyo remains without a trade deal after three months of talks, with 25% car tariff and US reciprocal duty still looming.

Japan rice
President Donald Trump criticised Japan for not buying American rice despite facing a massive domestic shortage. (File pic)
TOKYO:
Japan will not sacrifice the agricultural sector as part of its tariff talks with the US, its top negotiator said on Tuesday, after President Donald Trump complained that the key Asian ally was not buying American rice.

Trump’s comment, made in a social media post on Monday, comes as Tokyo scrambles to convince the US to scrap a 25% tariff on Japanese cars and a 24% reciprocal tariff on other Japanese imports. The reciprocal tariff has been paused until July 9, but Japan has yet to secure a trade deal after nearly three months of negotiations.

While the auto sector is Japan’s top employer and exporter, the farm sector has traditionally been an important voting bloc for Prime Minister Shigeru Ishiba’s Liberal Democratic Party, which faces key upper house elections on July 20.

“I have repeatedly stated that agriculture is the foundation of the nation,” top trade negotiator and economy minister Ryosei Akazawa told a press conference.

“In negotiations with the US, our stance remains unchanged: We will not engage in talks that would sacrifice the agricultural sector,” he said, adding that he would continue to negotiate with his US counterparts to protect Japan’s national interests.

Akazawa, who returned from his seventh trip to Washington a few days ago, declined to say whether rice was part of those discussions.

Trump wrote on Truth Social that Japan’s reluctance to import American-grown rice was a sign that countries have become “spoiled with respect to the United States of America.”

“I have great respect for Japan, they won’t take our RICE, and yet they have a massive rice shortage,” he wrote.

American rice import rise

Japan has in fact imported historically high volumes of US rice in recent months as domestically grown rice has skyrocketed in price since last year, hurting consumers.

But Tokyo caps tariff-free imports of staple rice – which is consumed at meals as opposed to rice used for feed or ingredients in other products – at 100,000 metric tonnes a year and imposes a levy of 341 yen (US$2.37) per kg for anything beyond that. That amount is a fraction of Japan’s total annual consumption of about 7 million tonnes.

While farm minister Shinjiro Koizumi has lamented the influx of foreign rice as a threat to Japan’s food security, the government has brought forward a tender usually held in September for this year’s first 30,000 tons of tariff-free staple rice imports as part of efforts to lower domestic prices.

Results of that tender, held on June 27, showed applications for 81,853 tonnes, or nearly three times as much as the amount auctioned. Of the total tendered, 25,541 tons was from the US, followed by 1,500 tonnes from Australia and 708 tonnes from Thailand.

Tariffed imports have also increased. In May alone, private companies imported some 10,600 metric tonnes of staple rice, of which about three-quarters came from the US, finance ministry data shows.

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