US "Tariffs 30%, 35%" Pressuring Japan

Trump Warns of Hike from Existing 24%

"Exploited the US for Decades, No Manners"

US President Donald Trump has warned that he may raise the mutual tariff rate on Japan, previously announced at 24% in April, ahead of the end of the mutual tariff suspension on the 8th. Analysts see this as an attempt to pressure Japan into making concessions in tariff negotiations and to set an example for South Korea and others.

On the 1st (local time), President Trump told reporters aboard Air Force One returning to Washington, D.C., that he was "not considering" an extension of the tariff suspension. Speaking about Japan, he said, "I love Japan, and former Prime Minister Shinzo Abe was one of my closest friends. I also like their new Prime Minister," but added, "Along with others, they have exploited us for 30-40 years and were very ill-mannered."

"The trade relationship was very unfair, and those days are now over," Trump said, emphasizing, "You will have to pay a tariff of 30%, 35%, or whatever number we decide." The mutual tariff rate on Japan that Trump notified in April was 24%, and he threatened to impose an even higher rate, similar to China's 30%.

This indicates that unless Japan sufficiently responds to US demands in tariff talks, higher tariffs may be imposed after the 8th. Financial Times (FT) pointed out, "President Trump is pressuring Prime Minister Shigeru Ishiba of Japan to make concessions in tariff negotiations, considering that he will face a House of Councillors election on the 20th with low approval ratings."

President Trump said, "Some countries will not be allowed to trade with the US, but for most, we will simply write a very straightforward letter, one or at most one and a half pages long, setting the numbers (mutual tariff rates)."

Donghyun Kim, 3code@hankyung.com