Japan's sticky problem with Trump, tariffs and rice

The surging outgo of atom has go a governmental blistery taxable successful Japan heading into elections this month. Photo: Richard A. Brooks / AFP
Source: AFP

Donald Trump's insistence that "spoiled" Japan imports much US atom is adding to Prime Minister Shigeru Ishiba's problems up of elections that could descend his premiership aft little than a twelvemonth successful office.

Japan is 1 of much than 20 countries receiving letters this week from the US president informing of "reciprocal" tariffs from August 1 failing a commercialized statement with Washington.

The 25 percent across-the-board levy for Japan is abstracted from akin charges for cars, alloy and aluminium that person already been imposed.

Trump wants to get Japanese firms to manufacture much successful the United States and for Tokyo to bargain much US goods -- notably state and oil, cars and atom -- to trim the $70 cardinal commercialized shortage with the Asian powerhouse.

"I person large respect for Japan, they won't instrumentality our RICE, and yet they person a monolithic atom shortage," Trump said connected Truth Social connected June 30.

Rice, though, is tiny fry successful the expansive strategy of bilateral business betwixt the countries.

BMI Fitch Solutions said that it accounts for lone 0.37 percent of US exports to Japan, and that adjacent doubling that would person a "negligible" effect connected wide trade.

"(The) Trump medication seems much acrophobic with the optics of striking deals than with meaningfully narrowing the US commercialized deficit," BMI said.

For Japan, doubling imports could beryllium swallowed if lone the economical interaction is considered.

It could beryllium good worthy it if specified a concession could trim oregon adjacent region Trump's damaging 25 percent tariff connected Japanese autos.

Lost bulk

But the politics of atom are fraught for Ishiba, whose ruling conjugation disastrously mislaid its bulk successful little location elections successful October.

Upper location elections connected July 20 could spot a akin drubbing, which mightiness punctual Ishiba to quit, 10 months aft taking the helm of the long-dominant but unloved Liberal Democratic Party (LDP).

Rice Japan holds a cherished spot successful Japanese nationalist civilization -- samurai reputedly utilized to beryllium paid successful it.

Relying connected imports -- presently astir each atom consumed is grown domestically -- would beryllium seen by galore arsenic a nationalist humiliation for the state of 124 cardinal people, and risky.

"Culturally, and historically, the Japanese radical are each astir rice," Shinichi Katayama, the fourth-generation proprietor of 120-year-old Tokyo atom wholesaler Sumidaya, told AFP.

"I personally invited having an further enactment for Japanese consumers. But I besides consciousness the determination (letting successful tons of overseas rice) is excessively aboriginal from the standpoint of nutrient security," helium said.

"If we go reliant connected atom imports, we whitethorn look shortages again erstwhile thing happens."

While Japan already imports atom from the United States, galore consumers spot foreign, long-grain varieties arsenic being of dubious prime and lacking the requisite stickiness of the homegrown short-grain rice.

Bad memories linger from erstwhile Japan suffered a acold summertime successful 1993 and had to import ample volumes of the atom from Thailand.

American atom "tastes awful. It lacks stickiness", said Sueo Matsumoto, 69, who helps families wherever children person proceeding difficulties.

"If they (the Americans) privation to export to Japan, they indispensable enactment astatine it. They indispensable deliberation astir user preference," helium told AFP successful Tokyo.

No sacrifice

As a result, Ishiba's authorities has been astatine pains to accidental it won't crook connected the contented -- though this whitethorn alteration aft the election.

"We person nary volition of sacrificing agriculture successful aboriginal negotiations," Chief Cabinet Secretary Yoshimasa Hayashi said recently.

"Ishiba is walking a constrictive plank, wary of provoking almighty home lobbies similar atom farmers, portion juggling an support standing that would marque assertive commercialized moves politically perilous," said Stephen Innes astatine SPI Asset Management.

The authorities has already been nether occurrence for the caller skyrocketing of atom prices, which person astir doubled successful 12 months.

Factors see a precise blistery summertime successful 2023, panic-buying aft a informing of an imminent "megaquake" successful 2024, alleged hoarding by immoderate traders, and a surge successful rice-hungry tourists.

To assistance easiness the pain, Tokyo is tapping exigency stockpiles, and imports person risen sharply -- led by atom from California -- but these are inactive tiny compared with home production.

"All these problems with atom prices amusement the LDP's agriculture argumentation has failed," retiree Yasunari Wakasa, 77, told AFP.

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Source: AFP