Trump rules out compromise on Japan auto tariffs as pause deadline nears

U.S. President Donald Trump has signalled no intention of easing hefty auto tariffs on Japan, reaffirming a hard-line trade stance just days before a critical deadline on country-specific tariffs expires.

In an interview broadcast on Sunday, Trump said his administration is prepared to unilaterally notify trading partners—including Japan—of new tariff rates, despite ongoing diplomatic efforts and strong opposition from Tokyo.

Trump's comments come as his administration’s 90-day pause on reciprocal tariffs is set to end on 9 July. The measure was intended to give major trading partners, including Japan, the European Union, India, and South Korea, a window to negotiate deals aimed at narrowing trade imbalances.

“I could send one [letter] to Japan. Dear Mr. Japan, here’s the story. You’re going to pay a 25% tariff on your cars,” Trump said in a Fox News interview, using Japan as an example of countries he believes benefit disproportionately from U.S. market access.

“They won’t take our cars, and yet we take millions and millions of their cars into the United States. It’s not fair.”

The remarks come amid stalled negotiations with Japan, which were further complicated after Prime Minister Shigeru Ishiba and Trump failed to reach an agreement during their recent meeting in Canada.

Japan's top tariff negotiator, Ryosei Akazawa, has been in Washington since Thursday for a seventh round of talks but was unable to secure a meeting with Treasury Secretary Scott Bessent, a key figure in Trump’s trade team.

Akazawa did meet briefly with Commerce Secretary Howard Lutnick and held two phone calls with him, but sources familiar with the discussions said no major breakthrough was achieved. The Japanese delegation, which extended its stay through Sunday in hopes of progress, returned to Tokyo without a deal.

Japan raised concerns earlier this year after the U.S. increased its duty on imported Japanese automobiles from 2.5% to 27.5%.

Tokyo has repeatedly urged Washington to reconsider, warning that the tariffs could damage both countries' economies and strain ties between close allies.

While Treasury Secretary Bessent has recently indicated that the tariff pause could be extended if negotiations continue in good faith, Trump’s latest remarks suggest the president is leaning toward a unilateral approach.

“We don’t have to meet. We understand. We have all the numbers,” Trump said. “Congratulations. We’re allowing you to shop in the United States of America. You’re going to pay a 25% tariff, or a 35% or a 50% or a 10%.”

Trump also suggested Japan could help reduce its trade surplus with the U.S. by purchasing more American oil and other goods—an idea Tokyo has not publicly embraced.

The White House on Thursday said the 90-day pause could still be extended, but Trump’s comments now cast doubt on that prospect. The tariff pause does not affect the administration’s global 10% baseline tariff, nor the existing sector-based levies on cars and auto parts, which remain in force.

As the 9 July deadline approaches, analysts warn that failure to resolve the dispute could reignite trade tensions between Washington and Tokyo, further unsettling global markets and automotive supply chains already strained by broader protectionist policies.

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