On Tuesday, President Trump stated that there is hope for the United States to reach a trade agreement with India. This agreement would reduce the market access restrictions for American businesses in India and provide them with tariff preferences. If the agreement is successfully finalized, India would be able to avoid the high 26% reciprocal tariffs that were set to go into effect on July 9.
Trump, during a media interview aboard Air Force One, expressed his belief that India is prepared to lower trade barriers for American companies. He mentioned that if India is willing to open its market, the United States will reach a significant tariff reduction agreement with them.
“I believe India will do that. If they do, we will have a deal that will have much lower tariffs, much lower,” Trump said.
The U.S. Treasury Secretary Scott Bessent also revealed during an interview with Fox News on the same day that the U.S. and India are very close to reaching an agreement. This agreement is expected to lower tariffs on American imports into India and prevent India from facing a steep tariff increase next week.
According to Indian government sources speaking to Reuters, Indian officials extended their visit to Washington last week until Monday of this week to negotiate a trade agreement with the Trump administration and resolve differences between the two countries.
India is one of over a dozen countries actively negotiating with the Trump administration. However, negotiations between the U.S. and India have faced obstacles related to import tariffs on automobile parts, steel, and agricultural products. The deadline for the implementation of the “reciprocal tariffs” set by Trump is approaching.
On the other hand, Trump expressed doubts about the possibility of reaching a trade agreement with Japan.
Upon his return to Washington, Trump told reporters aboard Air Force One, “We have dealt with Japan. I’m not sure if we’re going to make a deal with them. I doubt it.”
Trump pointed out that Japan refuses to accept rice grown in the United States while selling millions of cars in the U.S. He described accepting American rice as a “simple ask” that Japan has yet to respond to, questioning Japan’s sincerity in negotiations.
Trump mentioned that the U.S. may ultimately impose tariffs on Japanese products at rates of “30%, 35%, or whatever the final number may be.”
In response to Trump’s warning, the Japanese government on Wednesday did not provide a direct comment but stated that they will earnestly proceed with negotiations.
Kazuhiko Aoki, Deputy Chief Cabinet Secretary of Japan, said in a press conference held in Tokyo, “We are aware of President Trump’s remarks, but we will not respond to every statement made by U.S. government officials.”
He emphasized, “We hope to advance bilateral negotiations sincerely and earnestly to reach an agreement that is beneficial to both Japan and the U.S.”
Despite multiple rounds of ministerial-level negotiations between Japan and the U.S., no agreement has been reached so far. Prime Minister Shigeru Ishiba and U.S. leaders failed to reach a consensus due to differing positions during their meeting in mid-June.
With the upcoming parliamentary elections on July 20, Ishiba and his confidants, including Chief Negotiator Ryo Akasawa, have stated that the Japanese government will not sacrifice national interests to pursue an agreement, especially when it comes to maintaining protections for the agricultural sector.
It is worth noting that Japan is currently facing a rare rice price crisis domestically.
Since 2024, factors such as long-term production policies, high-temperature disasters, hoarding due to earthquakes, increased foreign tourism, inaccurate government demand estimates, and other factors have led to almost doubling the price of Japanese rice within a year, triggering what the public calls the “Reiwa Rice Chaos.”
Despite pressures for increased imports domestically, the Japanese government has yet to open its market to American rice imports, becoming a focal point of criticism from U.S. authorities.