Trump Escalates Pressure: Threatens 25% Tariffs on Japan, Urges Market Opening

Trump Issues Tariff Threat to Force Japan to Open Market

As U.S.-Japan trade talks stall, President Donald Trump on July 15 reiterated his stance during a media briefing near Washington. “We can adjust the agreement—if Japan is willing to open its market,” he said, before adding bluntly: “It doesn’t look like they are.”

According to Jiji Press, Trump has sent an official letter to Japanese Prime Minister Shigeru Ishiba, informing him of a planned “reciprocal tariff” policy that would raise duties on Japanese goods to 25%. He warned that if Japan refuses to compromise, the U.S. will implement the tariffs as outlined—potentially beginning August 1.

Election Timing Adds Political Pressure

With Japan’s Upper House election scheduled for July 20, the tariff threat comes at a politically sensitive time. Reports indicate that Ishiba is working to arrange a meeting with U.S. Treasury Secretary Bessent, who is due to visit Japan, in hopes of defusing tension.

The U.S. government has long viewed its trade deficit with Japan as a problem, particularly in the auto and agricultural sectors. In his letter, Trump demanded Japan remove non-tariff barriers, including technical standards and licensing restrictions. He also hinted that tariffs could be increased further if Japan fails to comply.

Tariff Storm May Expand Beyond Japan

Trump also announced plans to send similar letters to countries with smaller trade volumes with the U.S., warning of over 10% tariffs if they don’t engage in "fair" trade. He emphasized this tactic would become a cornerstone of his trade strategy.

Analysts view Trump’s move as both a negotiation tool and a show of strength to domestic voters. If Japan fails to respond effectively, its export industries—especially in autos and rice—could suffer serious setbacks.