Signalling a resolute push on agriculture sector negotiations, US President Donald Trump on Wednesday introduced a commerce take care of Japan that features market entry for American agricultural merchandise, together with politically delicate objects resembling rice. Below the deal, Japan has agreed to impose 15 per cent reciprocal tariffs, in comparison with the 25 per cent the US had threatened earlier this week.
This comes simply days after India concluded an prolonged spherical of talks however did not signal a deal, primarily resulting from variations over market entry for agricultural merchandise. The Japan settlement is critical as New Delhi too stays notably delicate over staple meals objects resembling wheat and rice.
As in India, rice is an economically necessary and politically delicate commodity in Japan — a lot in order that when Japan’s farm minister joked he by no means had to purchase rice as a result of his supporters gave him “loads” as items, he was in the end compelled to resign, the BBC reported.
Japan is at present dealing with a uncommon price of dwelling disaster, which has affected rice costs. In 2025, costs have greater than doubled in comparison with the earlier 12 months. The ruling coalition, led by Japanese Prime Minister Shigeru Ishiba, additionally suffered a defeat within the higher home elections amid widespread discontent over the price of dwelling.
The Yomiuri Shimbun newspaper reporting that President Donald Trump introduced a commerce framework with Japan on Tuesday. (Photograph: AP)
“We simply accomplished a large Take care of Japan, maybe the biggest Deal ever made. Japan will make investments, at my path, $550 Billion {Dollars} into the US, which is able to obtain 90% of the Earnings. This Deal will create A whole lot of Hundreds of Jobs — There has by no means been something prefer it,” Trump mentioned in a social media publish.
“Maybe most significantly, Japan will open their Nation to Commerce together with Automobiles and Vehicles, Rice and sure different Agricultural Merchandise, and different issues. Japan can pay Reciprocal Tariffs to the US of 15 per cent. This can be a very thrilling time for the US of America, and particularly for the truth that we are going to proceed to all the time have an excellent relationship with the Nation of Japan. Thanks in your consideration to this matter,” Trump added.
India is the biggest exporter of rice
Whereas agriculture stays a contentious subject in US commerce negotiations, India’s reliance on agriculture stays critically excessive. Nevertheless, Western nations, together with the US, have criticised India for offering extreme help to rice farmers. Though New Delhi has resisted strain to reform its farm insurance policies, it has additionally questioned the methodology used to calculate subsidies on the WTO.
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Notably, India is the world’s largest rice exporter. When India banned rice exports in July 2023, world costs rose by as much as 32 per cent in key rice-importing nations. The ban was lifted final 12 months following an increase in home inventories.
In the meantime, the Indian Coordination Committee of Farmers Actions (ICCFM) — a community of farmers’ organisations throughout 11 states together with Uttar Pradesh, Haryana, Punjab, Karnataka, Tamil Nadu and Maharashtra — has urged the federal government to exclude all facets of agriculture from the proposed commerce take care of the US with a purpose to safeguard Indian farmers’ pursuits.
The ICCFM highlighted the dangers to Indian farmers, stating that the US authorities is without doubt one of the world’s largest suppliers of agricultural subsidies. The 2024 US Farm Invoice has allotted a staggering $1.5 trillion in the direction of farm help.
Such in depth subsidies not solely prohibit agricultural imports into the US but additionally permit American merchandise to enter export markets at artificially low costs, the farmers’ group mentioned. Allowing closely subsidised US imports into India, the ICCFM argued, would undermine India’s longstanding place on the World Commerce Group (WTO) in opposition to such subsidies.