Trump Says "Proceeding by the Letter" with Japan... Maintains 25% Tariff

"Very Close to Reaching an Agreement with India"

Donald Trump, President of the United States (second from right), is holding a meeting with Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister of Bahrain (second from left), in the Oval Office at the White House on the 16th (local time). Photo by UPI

On the 16th (local time), President Donald Trump of the United States stated that it is highly likely that the United States will impose a 25% reciprocal tariff on Japan as scheduled, starting from August 1.

During a meeting with Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister of Bahrain, in the Oval Office at the White House on this day, President Trump responded to reporters' questions by saying, "We are negotiating with them (Japan), but in my opinion, it will probably proceed 'by the letter' with Japan," referring to the contents of the tariff letter.

President Trump's use of this expression is interpreted to mean that if negotiations with Japan are not concluded by August 1, he intends to implement the tariff letter sent on the 7th. The reciprocal tariff rate that the United States notified Japan of is 25%, which is 1 percentage point higher than the 24% reciprocal tariff rate set in April.

President Trump also met with reporters the previous day and suggested that several countries, including South Korea and the European Union (EU), are willing to "open" their markets. However, he assessed that the degree of market openness in Japan is "much less."

Japan, under the cabinet of Shigeru Ishiba, which currently has low approval ratings, is scheduled to hold an election for the House of Councillors (upper house) on the 20th. For this reason, it appears difficult for Japan to show flexibility in responding to U.S. demands for opening its agricultural market. The Nihon Keizai Shimbun (Nikkei) pointed out that it is highly likely that a landing point will only be found after the upper house election.

On this day, President Trump also stated that the United States is "very close to a trade agreement with India," mentioning the possibility of reaching a trade agreement with India following the United Kingdom, Vietnam, and Indonesia. If India reaches an agreement, it would become the fourth country overall and the third in the Indo-Pacific region.

Meanwhile, President Trump suggested that the United States would impose a reciprocal tariff rate exceeding 10% on small countries that are not actively engaging in trade negotiations with the United States. He described these countries as "really big problems" and announced that notice of payment would be sent to them.