U.S.–Japan trade talks stalled after the Trump administration demanded that Japan buy more American rice

Source Cryptopolitan

The U.S government’s demand for Japan to import more American rice is the latest wrench stalling plans for the drawn-out trade negotiations.

According to a Saturday report by the Nikkei newspaper, the dispute was caused by a revised directive from President Donald Trump that included a commitment for Japan to boost imports of U.S. rice, despite an earlier understanding that agricultural tariffs would not be further reduced.

U.S.–Japan trade talks have stalled due to dispute over rice

Trade negotiations between the United States and Japan have hit a roadblock after the Trump administration pressed Tokyo to increase purchases of American rice.

The disagreement led Japan’s top tariff negotiator, Ryosei Akazawa, to abruptly cancel a planned trip to the United States this week. Chief Cabinet Secretary Yoshimasa Hayashi confirmed the cancellation on Thursday, citing “points that need to be discussed at the administrative level” as the reason.

Akazawa originally made the trip to finalize Japan’s obligations in the $550B investment package it agreed with the United States, involving government-backed loans and guarantees.

The precise contents of that package remain unclear, but Japanese officials have said they want an amended presidential executive order eliminating overlapping tariffs on Japanese goods before they sign off on a joint document outlining the investment details.

Trump administration’s push for increased rice imports

The Nikkei report, citing unnamed Japanese government officials, stated that Tokyo’s objections were rooted in concerns over sovereignty and domestic policy. One official criticized the American proposal as an “interference in domestic affairs.”

Trump’s demand contradicts a deal made in July, in which the White House said Japan would increase its imports of U.S. rice by 75%. Japanese Prime Minister Shigeru Ishiba acknowledged at the time that U.S. rice might gain a larger share of the Japanese market, but emphasized that the arrangement would occur within the existing tariff-free system and would “not sacrifice” Japan’s agricultural sector.

Agriculture is one sector that Japan has always considered off limits in past trade negotiations. Domestic rice farmers have historically enjoyed strong protection, and different administrations have avoided any concessions in that area, as it may undermine rural political support.

Opposition leader Yuichiro Tamaki of the Democratic Party for the People has jumped on the absence of a written agreement to lead the domestic criticism, questioning the government’s handling of the talks.

“Because there is no written agreement, we cannot confirm what the problem is,” Tamaki said in a statement on X. He also called on Prime Minister Ishiba to convene parliament and provide a full explanation of the trade deal’s status.

Tamaki further argued that any additional concessions on agriculture would require parliamentary approval. He also cited “heightened uncertainty” for Japan’s auto industry and its workers.

Get $50 free to trade crypto when you sign up to Bybit now

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold price holds above $3,200; bullish bias remains amid trade uncertaintyGold price (XAU/USD) attracts some dip-buyers following the previous day's modest pullback from the record high and trades comfortably above the $3,200 mark during the Asian session on Tuesday.
Author  FXStreet
Apr 15, Tue
Gold price (XAU/USD) attracts some dip-buyers following the previous day's modest pullback from the record high and trades comfortably above the $3,200 mark during the Asian session on Tuesday.
placeholder
Ripple’s $21 Trillion Dream: What Capturing 20% Of SWIFT Volume Means For XRPRipple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
Author  NewsBTC
Jul 14, Mon
Ripple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
placeholder
OpenAI Introduces Lowest-Cost ChatGPT Subscription in India with UPI Payment OptionOn Tuesday, OpenAI introduced ChatGPT Go, its most affordable AI subscription tier, targeting the price-sensitive Indian market. Nick Turley, OpenAI’s Vice President and Head of ChatGPT, announced the launch via an X post, highlighting that users can pay through India’s Unified Payments Interface (UPI).
Author  Mitrade
Aug 19, Tue
On Tuesday, OpenAI introduced ChatGPT Go, its most affordable AI subscription tier, targeting the price-sensitive Indian market. Nick Turley, OpenAI’s Vice President and Head of ChatGPT, announced the launch via an X post, highlighting that users can pay through India’s Unified Payments Interface (UPI).
placeholder
Australia's CPI Inflation Surges in July, Dimming Expectations for RBA Rate CutsAustralia's consumer price index (CPI) inflation surged to a one-year peak in July, surpassing market expectations and complicating the Reserve Bank of Australia's (RBA) outlook on further interest rate cuts.
Author  Mitrade
Aug 27, Wed
Australia's consumer price index (CPI) inflation surged to a one-year peak in July, surpassing market expectations and complicating the Reserve Bank of Australia's (RBA) outlook on further interest rate cuts.
placeholder
Bitcoin Slides to $111K Ahead of PCE Inflation Data, Faces Monthly DeclineBitcoin experienced volatile trading on Friday, sliding close to $111,000 as investors awaited critical U.S.
Author  Mitrade
Aug 29, Fri
Bitcoin experienced volatile trading on Friday, sliding close to $111,000 as investors awaited critical U.S.
goTop
quote