Japan’s Sticky Dilemma: Trump, Tariffs, and Rice Turmoil

Japan’s Sticky Dilemma: Trump, Tariffs, and Rice Turmoil

Japan Faces a Rice‑Trade Tension Ahead of Elections

Trump Urges Japan to Import More US Rice

US President Donald Trump has warned that Japan could face a 25 percent tariff on all imports starting August 1 if it fails to meet Washington’s deal.
The tariff is separate from those already imposed on cars, steel and aluminium.

What Rice Means for the Japanese Economy

  • US rice sales to Japan account for only 0.37 percent of total exports.
  • Even a doubling of imports would have a negligible impact on the overall trade balance.
  • Japan could benefit if the tariff on Japanese autos were removed.

Rice Is a Cultural Staple in Japan

Japanese national identity is closely tied to short‑grain rice, which is grown domestically.
Importing large volumes would be seen as a national humiliation and an food‑security risk.

Public Opinion About American Rice

  • Consumers regard US long‑grain varieties as lacking stickiness and quality.
  • American rice is described by locals as “tastes awful”.
  • Some farmers fear shortages if the country becomes reliant on imports.

Ishiba’s Political Balancing Act

Prime Minister Shigeru Ishiba is navigating a narrow path:
– He must avoid provoking domestic rice‑farm lobbies.
– He must maintain an approval rating that would make aggressive trade moves politically perilous.

Current Rice‑Price Issues

  • Rice prices have roughly doubled in the past 12 months.
  • Factors include a hot summer in 2023, panic buying after a “megaquake” warning, alleged hoarding, and a surge in tourist demand.
  • Tokyo has tapped emergency stockpiles and increased imports, especially from California.

With the upper‑house elections on July 20, Ishiba faces a potential political crisis that could lead him to resign after only 10 months in office.