There is a goods trade deficit with Japan because the U.S. imports more than it exports, which Trump views as a sign of unfairness in the trading arrangements. In 2024, federal trade data shows the U.S. goods trade deficit with Japan was $68.5 billion.

US President Donald Trump cast doubt on reaching a trade deal with Japan, a day after threatening higher tariffs on Japanese exports to the United States, claiming the country won’t buy American rice.

TOKYO (Reuters) -Japanese Prime Minister Shigeru Ishiba said on Thursday U.S. President Donald Trump's views on some tariff-related issues may be based on misunderstanding or misinformation, as a pause on a 24% reciprocal tariff on imports from Japan expires next week.