US President Donald Trump has warned Japan that the US will soon raise taxes, called tariffs, on Japanese goods if the two countries cannot agree on a new trade deal by July 9, 2025.

Right now, most Japanese products entering the US pay a 10% tariff, but this could jump to as much as 35%. Japanese cars already face a 25% tariff, and steel and aluminum face 50%.

The US wants Japan to buy more American products, especially farm goods like rice. Trump says Japan does not buy enough US rice, but official trade data shows Japan does import American rice every year, about 770,000 metric tons, with roughly half from the US.

Japan says it cannot agree to changes that would hurt its farmers or its key industries, like car manufacturing. Talks between the two countries have not produced a deal.

Japan’s government says the higher tariffs would hurt both economies and could make cars, electronics, and other products more expensive for people in both countries. Economists estimate the new tariffs could reduce Japan’s economy by about 1%.

U.S. Threatens Steep Tariffs as Trade Talks With Japan Stall. (Photo Internet reproduction)

The US has tried to use tariffs to push not just Japan, but many countries, to change their trade policies. So far, only the UK has agreed to a new deal with the US during this period.

The US has also asked Japan and other allies to spend more on defense. This dispute matters because the US and Japan are two of the world’s biggest economies and trade partners.

If the US raises tariffs, it could disrupt business, raise prices, and put jobs at risk in both countries. With the deadline approaching, businesses and workers on both sides are waiting to see what happens next.