Trump threatens Japan with new tariffs over rice exports dispute
In a post on his Truth Social platform, Trump accused Japan of refusing US rice despite facing a shortage. 'I have great respect for Japan, they won't take our RICE, and yet they have a massive rice shortage,' he wrote. 'In other words, we'll just be sending them a letter, and we love having them as a Trading Partner for many years to come.'
The warning follows Trump's earlier announcement that he would unilaterally set tariff rates for trading partners by sending formal letters outlining new terms. Japan, the second-largest market for US milled rice exports, now faces potential economic repercussions if no agreement is reached before July 9.
Earlier this month, the US imposed a 10 percent tariff on imports from most trading partners but temporarily paused higher rates to allow negotiations. This pause expires next week, meaning steeper tariffs will automatically take effect unless deals are finalized.
So far, only two agreements have been announced—a broad framework with the UK and a temporary reduction in tariffs with China. National Economic Council director Kevin Hassett hinted that more pacts are nearing completion, including a 'double digit' number of trade deals.
Lawmakers are pushing to pass a major tax and spending bill by July 4, which could influence tariff negotiations. Hassett expects a 'marathon session' with Trump to finalize rates for affected countries.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
37 minutes ago
- Free Malaysia Today
G7 urges talks to resume for deal on Iran nuclear programme
The G7 foreign ministers endorse the Israel-Iran ceasefire, emphasising the importance of finding a diplomatic solution. (AP pic) OTTAWA : Foreign ministers from the Group of Seven nations said on Monday they supported the ceasefire between Israel and Iran and urged for negotiations to resume for a deal to address Iran's nuclear program, according to a joint statement. Since April, Iran and the US have held talks aimed at finding a new diplomatic solution regarding Iran's nuclear program. Tehran says its programme is peaceful and Israel and its allies say they want to ensure Iran cannot build a nuclear weapon. 'We call for the resumption of negotiations, resulting in a comprehensive, verifiable and durable agreement that addresses Iran's nuclear programme,' the G7 foreign ministers said. Last week, Trump announced a ceasefire between US ally Israel and its regional rival Iran to halt a war that began on June 13 when Israel attacked Iran. The Israel-Iran conflict had raised alarms in a region already on edge since the start of Israel's war in Gaza in October 2023. Before the ceasefire was announced, Washington struck Iran's nuclear sites and Iran targeted a US base in Qatar in retaliation. The G7 foreign ministers said they urged 'all parties to avoid actions that could further destabilise the region.' US Middle East Envoy Steve Witkoff has said talks between Washington and Tehran were 'promising' and that Washington was hopeful for a long-term peace deal. The G7 top diplomats denounced threats against the head of the UN nuclear watchdog on Monday, after a hardline Iranian newspaper said IAEA boss Rafael Grossi should be tried and executed as an Israeli agent. On June 12, the UN nuclear watchdog's 35-nation Board of Governors declared Iran in breach of its non-proliferation obligations for the first time in almost 20 years. Israel is the only Middle Eastern country believed to have nuclear weapons and said its war against Iran aimed to prevent Tehran from developing its own nuclear weapons. Iran is a party to the Nuclear Non-Proliferation Treaty, while Israel is not. The UN nuclear watchdog, which carries out inspections in Iran, says it has 'no credible indication' of an active, coordinated weapons programme in Iran.
Free Malaysia Today
37 minutes ago
- Free Malaysia Today
Dollar wallows near 3.5-year low as Fed cuts, Trump bill in focus
The greenback hovered near its weakest since 2021 against the euro and hit a 2015 low versus the Swiss franc. (Freepik pic) TOKYO : The US dollar hunkered near the lowest since February 2022 against major peers on Wednesday, as traders considered dovish hints from Federal Reserve chair Jerome Powell, along with the potential impact of President Donald Trump's spending bill. The greenback was pinned near its weakest since September 2021 on the euro, and was at its lowest since January 2015 versus the Swiss franc. Powell reiterated on Tuesday at the European Central Bank's annual conference in Sintra, Portugal that the Fed is taking a patient approach to further interest rate cuts, but didn't rule out a reduction at this month's meeting, saying everything depends on incoming data. That raises the stakes for the monthly non-farm payrolls report on Thursday. Indications of labour market resilience in the US JOLTS figures overnight saw the dollar rise off Tuesday's lows. The dollar index, which measures the currency against six major counterparts, edged up slightly to 96.677, but didn't stray far from the overnight low of 96.373. Markets are also keeping a close watch on Trump's massive tax-and-spending bill, which could add US$3.3 trillion to the national debt. The bill, which was passed by the US senate, will return to the house for final approval. 'The confirmation that this is an increase in issuance, an increase in government spending well beyond its means, is not necessarily good news for the Treasury market, and it's arguably one of the reasons the dollar's going down,' said Rodrigo Catril, a strategist at National Australia Bank. Also weighing on the US currency has been Trump's continued attacks on Powell, putting Fed independence in the spotlight. On Monday, the President sent the Fed chair a list of global central bank key rates adorned with handwritten commentary saying the US. rate should be between Japan's 0.5% and Denmark's 1.75%, and telling him he was 'as usual, 'too late.'' The greenback held steady at 0.7906 Swiss franc, after dipping as low as 0.7873 franc in the previous session. The euro was flat at US$1.1802, sticking close to the overnight peak of US$1.1829. Sterling edged up slightly to US$1.37435, approaching Tuesday's high of US$1.3787, a level last seen in October 2021. The dollar made up a little ground against the yen, adding 0.1% to 143.59 yen, following the prior session's 0.4% slide.
Free Malaysia Today
37 minutes ago
- Free Malaysia Today
Senate vote-a-rama to pass Trump's US$3.3 trillion bill extends into second day
Beginning on Monday and ongoing for over 16 hours, it was still unclear how long the voting would last. (EPA Images pic) WASHINGTON : US Senate Republicans in the early hours of Tuesday morning were still trying to pass President Donald Trump's sweeping tax-cut and spending bill, despite divisions within the party about its expected US$3.3 trillion hit to the nation's debt pile. Senators were voting in a marathon session known as a 'vote-a-rama,' featuring a series of amendments by Republicans and the minority Democrats, part of the arcane process Republicans are using to bypass Senate rules that normally require 60 of the chamber's 100 members to agree on legislation. Beginning on Monday and ongoing for over 16 hours, it was still unclear how long the voting would last. Lawmakers said the process had been held up partly by the need to determine whether amendments complied with special budgetary rules. Shortly after midnight, Senate majority leader John Thune told reporters the vote-a-rama was 'hopefully on the home stretch and then we'll see where the votes are.' Republicans can afford to lose no more than three votes in either chamber to pass a bill the Democrats are united in opposition to. The nonpartisan Congressional Budget Office released its assessment on Sunday of the bill's hit to the US$36.2 trillion U.S. debt pile. The Senate version is estimated to cost US$3.3 trillion, US$800 billion more than the version passed last month in the House of Representatives. Many Republicans dispute that claim, contending that extending existing policy will not add to the debt. Nonetheless, international bond investors see incentives to diversify out of the US treasury market. Democrats, meanwhile, hope the latest, eye-widening figure could stoke enough anxiety among fiscally minded conservatives to get them to buck their party, which controls both chambers of Congress. 'This bill, as we have said for months, steals people's healthcare, jacks up their electricity bill to pay for tax breaks for billionaires,' Democratic Senate minority leader Chuck Schumer said in a speech to the Senate. Thune countered that the tax cuts will help families and small businesses as he defended spending reductions to social safety net programmes. He said Medicaid was growing at an unsustainable rate and there were some improvements and reforms to make it more efficient. The Senate narrowly advanced the tax cut, immigration, border and military spending bill in a procedural vote late on Saturday, voting 51-49 to open debate on the 940-page megabill. Trump wants the bill passed before the July 4 Independence Day holiday. Bill politics Amendments proposed by Democratic senators such as the proposed limiting cuts to Medicaid were rejected by the Republican majority. Embedded in the Senate Republicans' bill are several hot-button political issues, like a prohibition of Medicaid funding for a list of almost 30 medical procedures related to gender transition, as well as an increase of immigration-related funding for criminal and gang checks for unaccompanied migrant children, including examinations of 'gang-related tattoos' for children as young as 12 years old. Early on Tuesday, Democrats and Republicans voted down an attempt by Republican Senator Susan Collins to cushion the impact of Medicaid cuts on rural health facilities by doubling federal support to US$50 billion over five years and paying for the increase by raising the top federal tax rate. The measure still drew support from 18 Republicans. Elon Musk, formerly appointed by Trump to spearhead his government cost-cutting plan before the pair had a public falling-out in June over the budget bill, threatened on Monday to target Republicans ahead of the 2026 midterm election. 'Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!' Musk posted on X. He also reiterated his interest in a new political party and accused lawmakers in both parties of belonging to the 'porky pig party', a dig at government spending levels. The US chamber of commerce, which says the majority of its members are small businesses, backs the bill. However, John Arensmeyer, who represents more than 85,000 small enterprises at the Small Business Majority, cautioned that the business tax relief is currently skewed to the wealthiest top 5% of small businesses. Debt ceiling deadline The Republican measure contains a US$5 trillion debt ceiling increase – US$1 trillion more than the House's bill – but failure to pass some version would present lawmakers with a serious deadline later this summer, when the treasury department could come close to exhausting its borrowing authority and thus risk a devastating default. The debt limit increase has caused Senator Rand Paul of Kentucky to come out in opposition to the bill, joining fellow Republican Tillis, who decried its cuts to Medicaid and clean energy initiatives. According to the Congressional Budget Office, the Senate bill would result in about 11.8 million additional uninsured people, surpassing estimates for the House's version. If the Senate succeeds in passing the bill, it will then go to the House, where members are also divided, with some angry about its cost and others worried about cuts to the Medicaid program. The megabill would extend the 2017 tax cuts that were Trump's main legislative achievement during his first term as president, cut other taxes and boost spending on the military and border security. Senate Republicans, who reject the budget office's estimates on the cost of the legislation, are set on using an alternative calculation method that does not factor in costs from extending the 2017 tax cuts. Outside tax experts, like Andrew Lautz from the nonpartisan think tank Bipartisan Policy Center, call it a 'magic trick'. Using this calculation method, the Senate Republicans' budget bill appears to cost substantially less and seems to save US$500 billion, according to the BPC analysis.
