The China Mail - Japan's sticky problem with Trump, tariffs and rice

USD -
AED 3.672497
AFN 65.476658
ALL 83.300435
AMD 382.280324
ANG 1.790055
AOA 917.000338
ARS 1407.957703
AUD 1.535898
AWG 1.8
AZN 1.703248
BAM 1.684198
BBD 2.013055
BDT 122.136156
BGN 1.683695
BHD 0.377061
BIF 2944.440385
BMD 1
BND 1.298153
BOB 6.931234
BRL 5.3143
BSD 0.999466
BTN 88.614561
BWP 14.187976
BYN 3.409862
BYR 19600
BZD 2.010135
CAD 1.40392
CDF 2137.500188
CHF 0.790715
CLF 0.023702
CLP 929.830194
CNY 7.11275
CNH 7.09782
COP 3745.98
CRC 502.05818
CUC 1
CUP 26.5
CVE 95.374983
CZK 20.805503
DJF 177.719815
DKK 6.42426
DOP 64.394136
DZD 130.265967
EGP 47.190897
ERN 15
ETB 153.599323
EUR 0.86023
FJD 2.278983
FKP 0.757017
GBP 0.760755
GEL 2.700507
GGP 0.757017
GHS 10.949779
GIP 0.757017
GMD 72.999716
GNF 8684.99959
GTQ 7.66177
GYD 209.09956
HKD 7.77325
HNL 26.310228
HRK 6.482902
HTG 130.597544
HUF 330.946018
IDR 16726.8
ILS 3.247105
IMP 0.757017
INR 88.71155
IQD 1310
IRR 42112.486604
ISK 126.29938
JEP 0.757017
JMD 160.37683
JOD 0.709013
JPY 154.542982
KES 129.350205
KGS 87.450162
KHR 3998.813765
KMF 425.000127
KPW 900.02171
KRW 1458.309872
KWD 0.30674
KYD 0.832885
KZT 522.657205
LAK 21694.99964
LBP 89171.810368
LKR 305.549336
LRD 182.000099
LSL 17.080069
LTL 2.95274
LVL 0.60489
LYD 5.460109
MAD 9.282499
MDL 16.821311
MGA 4499.99986
MKD 52.861525
MMK 2099.568332
MNT 3578.06314
MOP 8.000499
MRU 39.849864
MUR 45.649881
MVR 15.40497
MWK 1735.999932
MXN 18.37284
MYR 4.132501
MZN 63.959778
NAD 17.079803
NGN 1442.029986
NIO 36.770365
NOK 10.098797
NPR 141.783641
NZD 1.760365
OMR 0.384496
PAB 0.999427
PEN 3.369051
PGK 4.119604
PHP 59.120054
PKR 280.749991
PLN 3.642037
PYG 7040.597969
QAR 3.640903
RON 4.374695
RSD 100.796969
RUB 80.925379
RWF 1450
SAR 3.750043
SBD 8.237372
SCR 13.886917
SDG 601.499001
SEK 9.463005
SGD 1.30179
SHP 0.750259
SLE 23.375025
SLL 20969.498139
SOS 571.497823
SRD 38.589012
STD 20697.981008
STN 21.45
SVC 8.745635
SYP 11058.869089
SZL 17.079909
THB 32.450972
TJS 9.254993
TMT 3.5
TND 2.952498
TOP 2.40776
TRY 42.329902
TTD 6.757548
TWD 31.181985
TZS 2449.999921
UAH 42.0333
UGX 3658.079766
UYU 39.741144
UZS 12004.999839
VES 233.26555
VND 26350
VUV 121.860911
WST 2.809778
XAF 564.864178
XAG 0.019279
XAU 0.000242
XCD 2.70255
XCG 1.801381
XDR 0.704774
XOF 564.999617
XPF 103.250166
YER 238.483762
ZAR 17.1366
ZMK 9001.188498
ZMW 22.412628
ZWL 321.999592
  • JRI

    -0.0885

    13.548

    -0.65%

  • RYCEF

    -0.6000

    14.4

    -4.17%

  • SCS

    -0.0900

    15.53

    -0.58%

  • GSK

    -0.3529

    47.37

    -0.75%

  • AZN

    -0.1700

    88.44

    -0.19%

  • NGG

    -1.0300

    77.06

    -1.34%

  • VOD

    -0.1200

    12.29

    -0.98%

  • RIO

    -0.4750

    70.565

    -0.67%

  • RELX

    -0.5900

    40.83

    -1.45%

  • BCC

    -0.5760

    68.634

    -0.84%

  • BCE

    -0.2900

    22.82

    -1.27%

  • BP

    0.1592

    36.15

    +0.44%

  • RBGPF

    -2.8200

    75.65

    -3.73%

  • CMSD

    0.0872

    23.93

    +0.36%

  • BTI

    -0.8850

    53.595

    -1.65%

  • CMSC

    0.0800

    23.91

    +0.33%

Japan's sticky problem with Trump, tariffs and rice
Japan's sticky problem with Trump, tariffs and rice / Photo: © AFP

Japan's sticky problem with Trump, tariffs and rice

Donald Trump's insistence that "spoiled" Japan imports more US rice is adding to Prime Minister Shigeru Ishiba's problems ahead of elections that could sink his premiership after less than a year in office.

Text size:

Japan is one of more than 20 countries receiving letters this week from the US president warning of "reciprocal" tariffs from August 1 failing a trade agreement with Washington.

The 25 percent across-the-board levy for Japan is separate from similar charges for cars, steel and aluminium that have already been imposed.

Trump wants to get Japanese firms to manufacture more in the United States and for Tokyo to buy more US goods -- notably gas and oil, cars and rice -- to reduce the $70 billion trade deficit with the Asian powerhouse.

"I have great respect for Japan, they won't take our RICE, and yet they have a massive rice shortage," Trump said on Truth Social on June 30.

Rice, though, is small fry in the grand scheme of bilateral business between the countries.

BMI Fitch Solutions said that it accounts for only 0.37 percent of US exports to Japan, and that even doubling that would have a "negligible" effect on overall trade.

"(The) Trump administration seems more concerned with the optics of striking deals than with meaningfully narrowing the US trade deficit," BMI said.

For Japan, doubling imports could be swallowed if only the economic impact is considered.

It could be well worth it if such a concession could reduce or even remove Trump's damaging 25 percent tariff on Japanese autos.

- Lost majority -

But the politics of rice are fraught for Ishiba, whose ruling coalition disastrously lost its majority in lower house elections in October.

Upper house elections on July 20 could see a similar drubbing, which might prompt Ishiba to quit, 10 months after taking the helm of the long-dominant but unloved Liberal Democratic Party (LDP).

Rice Japan holds a cherished place in Japanese national culture -- samurai reputedly used to be paid in it.

Relying on imports -- currently almost all rice consumed is grown domestically -- would be seen by many as a national humiliation for the country of 124 million people, and risky.

"Culturally, and historically, the Japanese people are all about rice," Shinichi Katayama, the fourth-generation owner of 120-year-old Tokyo rice wholesaler Sumidaya, told AFP.

"I personally welcome having an additional option for Japanese consumers. But I also feel the move (letting in lots of foreign rice) is too early from the standpoint of food security," he said.

"If we become reliant on rice imports, we may face shortages again when something happens."

While Japan already imports rice from the United States, many consumers see foreign, long-grain varieties as being of dubious quality and lacking the requisite stickiness of the homegrown short-grain rice.

Bad memories linger from when Japan suffered a cold summer in 1993 and had to import large volumes of the grain from Thailand.

American rice "tastes awful. It lacks stickiness", said Sueo Matsumoto, 69, who helps families where children have hearing difficulties.

"If they (the Americans) want to export to Japan, they must work at it. They must think about consumer preference," he told AFP in Tokyo.

- No sacrifice -

As a result, Ishiba's government has been at pains to say it won't bend on the issue -- although this may change after the election.

"We have no intention of sacrificing agriculture in future negotiations," Chief Cabinet Secretary Yoshimasa Hayashi said recently.

"Ishiba is walking a narrow plank, wary of provoking powerful domestic lobbies like rice farmers, while juggling an approval rating that would make aggressive trade moves politically perilous," said Stephen Innes at SPI Asset Management.

The government has already been under fire for the recent skyrocketing of rice prices, which have roughly doubled in 12 months.

Factors include a very hot summer in 2023, panic-buying after a warning of an imminent "megaquake" in 2024, alleged hoarding by some traders, and a surge in rice-hungry tourists.

To help ease the pain, Tokyo is tapping emergency stockpiles, and imports have risen sharply -- led by rice from California -- but these are still tiny compared with domestic production.

"All these problems with rice prices show the LDP's agriculture policy has failed," retiree Yasunari Wakasa, 77, told AFP.

M.Zhou--ThChM