Trump’s 35% tariff threat feeds Japan’s worst-case scenario fear


U.S. President Donald Trump gestures as he speaks during the opening of a temporary migrant detention center informally known as "Alligator Alcatraz" in Ochopee, Florida, U.S., July 1, 2025. REUTERS/Evelyn Hockstein

US President Donald Trump threatened Japan with tariffs of up to 35% as he ramped up tensions for a third straight day, fueling fears of a worst-case scenario among market players and raising doubts over Tokyo’s tactics in trade talks.

Japan should be forced to "pay 30%, 35% or whatever the number is that we determine, because we also have a very big trade deficit with Japan,” Trump said, again flagging the possibility that across-the-board tariffs could go much higher than the 24% initially penciled in for July 9. "I’m not sure we’re going to make a deal. I doubt it with Japan, they’re very tough. You have to understand, they’re very spoiled.” 

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