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Trump’s 35% Tariff Threat Feeds Japan’s Worst-Case Scenario Fear

  • Trump threatened up to 35% tariffs on Japan, fueling fears of worst-case scenario in Tokyo.
  • Mounting U.S. deficits with Japan and failed mid-June talks prompted Trump’s threat to raise tariffs up to 35%.
  • Most Japanese exports face a 10% tariff, with a 25% tax on vehicles and 50% on steel, amid a paused tariff regime and stalled talks.
  • Trump's threat of up to 35% tariffs deepens Japan's economic and political strain ahead of the July 20 election, hitting automakers like Toyota and Honda hard.
  • The July 9 pause on U.S. tariffs expires next week, with Trump indicating up to 35% tariffs could be imposed on Japan, risking a trade escalation.
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[NHK] In connection with the Japan-US negotiations over tariff measures, US President Trump expressed dissatisfaction with Japan on the 1st, saying that trade with Japan was unfair, and made a statement to Japan...

·Tokyo, Japan
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President Donald Trump threatened Japan with tariffs of up to 35%, which fueled fears of a catastrophic investor scenario and raised doubts about Tokyo’s tactics in trade negotiations. Japan should be forced to “pay 30%, 35% or whatever figure we determine, because we also have a very large trade deficit with Japan,” Trump said, again pointing out the possibility that general tariffs may be much higher than the 24% initially scheduled for July 9…

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The Hindu broke the news in India on Tuesday, July 1, 2025.
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