Trump's tariff letter shatters Japan's hopes for a special relationship
KEN MORIYASU
WASHINGTON -- When the White House began negotiations after President Donald Trump announced country-by-country "reciprocal" tariffs, Japan was first in line. Japanese trade envoy Ryosei Akazawa met with Trump in the Oval Office in mid-April, and was photographed donning a red "Make America Great Again" hat, signed by the president, signaling optimism.
On Monday morning, it was a completely different picture. Japan was the first to receive a letter from Trump declaring the relationship "far from Reciprocal" and announcing a unilateral 25% tariff on all Japanese goods exports to the U.S.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Japan Times
an hour ago
- Japan Times
Trump vows no tariff extension, hardens threats on copper, drugs
U.S. President Donald Trump vowed to push forward with his aggressive tariff regime in the coming days, stressing he would not offer additional extensions on country-specific levies set to now hit in early August while indicating he could announce substantial new rates on imports of copper and pharmaceuticals. The posturing on social media and at a Cabinet meeting on Tuesday came after traders initially shrugged off a series of letters and executive actions Trump issued Monday, pushing back the deadline for his "reciprocal' tariffs while announcing the latest rates he planned for more than a dozen countries that had not succeeded in brokering quick trade agreements. That changed Tuesday as Trump signaled a renewed determination to push ahead with his plans to heavily tax foreign imports. Trump said he would offer no additional delays on the country-specific tariffs, despite the previous night allowing he was "not 100% firm' on his Aug. 1 deadline. He said he would impose a 50% rate on copper products being sent into the U.S., causing futures of the commodity to surge to their largest intraday gain in data going back to at least 1988. He also told reporters that despite progress with the European Union on a trade deal, frustration over the bloc's taxes and fines targeting U.S. technology firms could result in him unilaterally declaring a new tariff rate within the next two days. And just hours after saying he was close to a trade deal with India, Trump said he would still tag imports from the country with an additional 10% levy for their participation in BRICS, a collection of developing nations. Moreover, he said, drug companies could face a tax as high as 200% on imports if they didn't move production to the U.S. in the next year. "We want to have relationships, but in every case, they treated us far worse than I'm treating them,' Trump said of trading partners. Copper wires at a recycling facility in Salt Lake City, Utah, on May 8. Copper futures on Tuesday surged to their largest intraday gain in data going back to at least 1988, after Trump said he would impose a tariff on the metal. | Bloomberg As investors assessed the latest trade news, the S&P 500 wavered. Treasurys joined a global drop in longer-dated bonds. Trump opened the morning with a social media post declaring his new rates would hit at the beginning of August, despite speculation that he might once again punt on the most punishing of tariffs. "TARIFFS WILL START BEING PAID ON AUGUST 1, 2025. There has been no change to this date, and there will be no change,' Trump wrote on his Truth Social platform on Tuesday. "In other words, all money will be due and payable starting AUGUST 1, 2025 — No extensions will be granted.' Trump began notifying trading partners of the new rates on Monday ahead of what was initially a deadline this week for countries to wrap up trade negotiations with his administration. Commerce Secretary Howard Lutnick, speaking to CNBC shortly after the Cabinet meeting on Tuesday, said he expected an additional 15 to 20 letters to be released in the coming two days. But the new letters, unilaterally setting duties on countries that fail to reach deals, came alongside an executive order delaying the tariff date for three weeks, effectively giving trading partners an extension for talks. That caveat — paired with Trump signaling that he was still negotiating additional deals — fueled skepticism among some in Washington and on Wall Street that the president would follow through on his latest tariff threats. On Tuesday, Trump adopted a more strident tone as he addressed reporters during a Cabinet meeting, saying that despite previously indicating he was close to a trade deal with India, he still planned to punish the country for its participation in the BRICS forum. Trump said the group of developing countries was "set up to hurt us.' "I can play that game too so anybody that's in BRICS is getting a 10%' tariff addition, Trump said. Trump also said that he was close to sending the European Union a letter unilaterally setting tariff rates, despite reported progress in trade talks with the bloc. The U.S. president said that while European nations were now "treating us very nicely,' he remained frustrated over longstanding trade deficits and digital services taxes and fines impacting U.S. technology companies. "We're probably two days off from sending them a letter,' he said. Trump also said he would impose tariffs of 60% or 70% on some nations as he issued additional letters in the coming days. "I just want you to know a letter means a deal,' he said. Trump also he was still planning tariffs on select industries, including drugs, semiconductors, and metals. "I believe the tariff on copper we're going to make it 50%,' he said when asked by a reporter what the rate on those products would be. Trump said he expected to offer pharmaceutical manufacturers some time to bring their operations to the U.S. before slapping tariffs of as much as 200% on their products. An S&P 500 index of drugmakers turned negative after Trump's comments, while shares of Eli Lilly & Co., Merck & Co. and Pfizer Inc. pared earlier gains. "We're going to give people about a year, a year and a half, to come in,' Trump said. "And after that they're going to be tariffed if they have to bring the pharmaceuticals into the country, the drugs and other things, into the country. They're going to be tariffed at a very, very high rate, like 200%. We'll give them a certain period of time to get their act together.' Copper plates on wagons ready for shipping in Mufulira, Zambia. Trump has said he would impose a 50% tariff on copper products being sent into the U.S. | Bloomberg Trump has already announced investigations under Section 232 of the Trade Expansion Act of 1962 on each of those products, arguing that a flood of foreign imports was threatening national security. After those efforts are concluded, Trump is expected to move forward with the levies. The effort is separate from the country-specific tariff rates, which White House officials have said would not apply to products hit under his Section 232 efforts. The move was only the latest in a trade agenda that has seen numerous delays and reversals as Trump has used the threat of tariffs to reshape global trade flows and pressure companies to shift more manufacturing jobs to the United States, roiling financial markets in the process. Trump initially announced the higher reciprocal rates on over 50 trading partners on April 2, but lowered those rates temporarily to 10% for 90 days, allowing time for negotiations. That deadline was set to expire this week, but Trump signed an executive order on Monday pushing implementation until Aug. 1. While the administration initially talked up plans to hold concurrent negotiations with dozens of partners, so far the U.S. has only finalized framework trade deals with the U.K. and Vietnam — with many key details still unresolved — and achieved a truce with China to lower rates. The tariff notifications sent on Monday largely kept in place the rates Trump had earlier said nations would face if talks did not secure agreements. Japan and South Korea were hit with 25% tariffs, while South Africa received 30% and Laos and Myanmar were hit with 40% levies. Trump has also warned nations not to retaliate, saying that any moves to counter the U.S. would see duties increased by that amount.
an hour ago
Japan Emperor Gives Video Speech at U.N. Water, Disaster Event
News from Japan Society Jul 9, 2025 09:38 (JST) Tokyo, July 9 (Jiji Press)--Japanese Emperor Naruhito delivered a keynote speech via video at the Seventh Special Thematic Session on Water and Disasters held at the U.N. headquarters in New York on Tuesday. In the 11-minute prerecorded speech given in English, the Emperor extended his sympathies to those affected by recent natural disasters, such as a major earthquake that struck Myanmar in March this year and a powerful temblor that hit the Noto Peninsula in central Japan in January 2024. He mentioned an artificial waterway constructed in the city of Koriyama in the northeastern Japan prefecture of Fukushima with the cooperation of Dutch engineers during the country's Meiji era (1868-1912). Emperor Naruhito also touched on his official trip to Indonesia in 2023, during which he inspected an erosion control facility built through Japan's technological assistance. Water "has become the foundation for friendships and partnerships between people and regions," he said, adding that he "sincerely" hopes that people will be encouraged "to take new action" to tackle water-related issues around the world. [Copyright The Jiji Press, Ltd.] Jiji Press
The Mainichi
an hour ago
- The Mainichi
Bessent to visit Japan for World Expo in Osaka, possibly next week
WASHINGTON (Kyodo) -- U.S. Treasury Secretary Scott Bessent is scheduled to visit Japan, possibly next week, as a member of the U.S. delegation to the World Exposition in Osaka, an official said Tuesday. Without providing further details, the Treasury Department official disclosed Bessent's planned visit on condition of anonymity. The United States will mark its national day, featuring a range of entertaining programs, on July 19 at the expo. Bessent is a key figure in the ongoing U.S. tariff negotiations with Japan. His plan became known a day after President Donald Trump said the United States will impose a 25 percent tariff on imports from Japan starting Aug. 1. As the bilateral talks appear to be stalled, it remains unclear whether Bessent will meet with Japan's chief tariff negotiator, Ryosei Akazawa, or other officials while in the country. The visit will be Bessent's first to Japan since Trump returned to the White House in January for his nonconsecutive second presidency. Japan and the United States have had in-person ministerial negotiations over Trump's latest tariff regime seven times. For every round of meetings, Akazawa has traveled to Washington. Given the planned trip, Bessent will likely skip a meeting of Group of 20 finance ministers and central bank governors in South Africa next week. In a letter addressed to Japanese Prime Minister Shigeru Ishiba and posted in full on social media on Monday, Trump said, "Please understand that the 25% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country." The tariff rate is 1 percentage point higher than what Trump initially unveiled on April 2, prompting Ishiba to call the president's move "truly regrettable." The 25 percent rate was announced before the expiration, originally set for Wednesday, of his 90-day pause on country-specific tariffs, targeting dozens of trading partners. Along with Japan, Trump notified 13 other countries, including Indonesia, Thailand and South Korea, of new tariff rates via letters. At the same time, he extended the pause to Aug. 1 and urged the 14 countries to compromise before the new tariffs take effect. During a Cabinet meeting on Tuesday, Trump said "tremendous amounts of money" had already started flowing into the United States as a result of his tariff strategy. "We never did that before. We're not used to it," he said. "The big money will start coming in on August 1st." Following Japan's receipt of the tariff letter, Akazawa, the country's minister for economic revitalization, spoke to Bessent by phone for about 30 minutes. The Japanese government said Akazawa and Bessent agreed to continue "vigorous consultations" between the two countries. Akazawa spoke separately with Commerce Secretary Howard Lutnick, during which they also agreed to advance the ongoing talks, according to the government.
