Trump demand for Japan to buy more US rice snagged trade talks, Nikkei says

A recent snag in bilateral trade talks between the US and Japan was caused by a request from the Trump administration for Japan to purchase more US rice, according to a report by the Nikkei newspaper on Saturday.

Japan’s top tariff negotiator canceled a planned trip to the US on Thursday, citing the need to discuss certain points at the administrative level. This cancellation came as the two countries are working on finalizing details of an agreement reached in July to reduce tariffs on US imports from Japan to 15%.

The Nikkei reported that a revised order from President Trump included a provision for Japan to increase its purchases of American rice. This condition was met with strong objection from Japanese officials, with one official criticizing it as interference in domestic affairs.

The demand for Japan to buy more US rice contradicted an earlier agreement that Japan would not have to lower its tariffs on agricultural imports. In the July deal, it was stated that Japan would increase its purchases of US rice by 75%, with Prime Minister Shigeru Ishiba emphasizing that Japanese agriculture would not be sacrificed.

The cancellation of the tariff negotiator’s trip was intended to finalize Japan’s agreement to a $550 billion package of US-bound investment through government-backed loans and guarantees. However, the specifics of this agreement remain unclear.

Japanese officials have expressed the need for an amended presidential executive order that removes overlapping tariffs on Japanese goods before releasing a joint document on the investment details. Opposition leader Yuichiro Tamaki has raised concerns about the transparency and competence of the government in handling the trade deal, calling for a formal text of the agreement to be presented to parliament for approval.