Japan-US trade talks just hit a major snag over rice. According to a Nikkei report, the Trump administration is pushing Japan to import more American rice, and Tokyo is not having it.Japanese officials are calling this demand completely out of line, saying it messes with their domestic farm policies and breaks previous agreements they had in place.They’re so upset about it that Japan’s top trade negotiator just canceled a planned trip to the USThis development is derailing efforts to nail down the details on broader trade and investment agreements between the two countries.Rice might seem like a small issue, but it’s clearly become a sticking point that’s bigger than anyone expected.Trade talks snagged over rice purchase demandThis rice dispute couldn’t have come at a worse time. Japan and the US were actually making good progress on a big trade deal from July that would cut American tariffs on Japanese imports, including cars down to 15%.They were also working out a massive $550 billion investment package with government backing.Everything seemed to be moving along until Trump’s team suddenly threw in this new demand about rice purchases.The problem is, this completely goes against what Japan thought they had already agreed to. The original understanding was that Japan wouldn’t have to mess with its agricultural import tariffs at all.That’s when Japan’s chief negotiator, Ryosei Akazawa, decided to pull the plug on his Washington trip. Japanese officials are calling this exactly the kind of meddling in their domestic markets they were trying to avoid.Japanese agriculture and economic officials are pushing back hard, telling the US that forcing them to buy more rice could seriously damage their farming sector.Japan has spent decades protecting its agriculture with high tariffs and government subsidies, and it’s not about to throw that away now.Tokyo is drawing a clear line in the sand as they want to keep their current system, where certain rice imports come in tariff-free, but they’re not budging beyond that.Implications and reactions in JapanThe trade mess is starting to cause political headaches back in Japan.Opposition leader Yuichiro Tamaki is going after the government, questioning why they’re being so secretive about what’s actually happening in these negotiations.Tamaki has emphasized that it’s risky to keep moving forward without getting everything nailed down in writing first. He’s especially worried about Japan’s car industry, which needs predictable trade rules to plan its business.When trade relations get shaky, automakers get nervous about their investments and supply chains.This whole rice fight really shows how Trump’s trade strategy has evolved. What started as a trade war with China has now spread to pressuring allies like Japan.It’s not just about tariffs anymore, as now the US is making specific demands about what countries should buy from American farmers.The post US-Japan trade talks falter over Trump’s rice demand: here's what we know appeared first on InvezzJapan-US trade talks just hit a major snag over rice. According to a Nikkei report, the Trump administration is pushing Japan to import more American rice, and Tokyo is not having it.Japanese officials are calling this demand completely out of line, saying it messes with their domestic farm policies and breaks previous agreements they had in place.They’re so upset about it that Japan’s top trade negotiator just canceled a planned trip to the USThis development is derailing efforts to nail down the details on broader trade and investment agreements between the two countries.Rice might seem like a small issue, but it’s clearly become a sticking point that’s bigger than anyone expected.Trade talks snagged over rice purchase demandThis rice dispute couldn’t have come at a worse time. Japan and the US were actually making good progress on a big trade deal from July that would cut American tariffs on Japanese imports, including cars down to 15%.They were also working out a massive $550 billion investment package with government backing.Everything seemed to be moving along until Trump’s team suddenly threw in this new demand about rice purchases.The problem is, this completely goes against what Japan thought they had already agreed to. The original understanding was that Japan wouldn’t have to mess with its agricultural import tariffs at all.That’s when Japan’s chief negotiator, Ryosei Akazawa, decided to pull the plug on his Washington trip. Japanese officials are calling this exactly the kind of meddling in their domestic markets they were trying to avoid.Japanese agriculture and economic officials are pushing back hard, telling the US that forcing them to buy more rice could seriously damage their farming sector.Japan has spent decades protecting its agriculture with high tariffs and government subsidies, and it’s not about to throw that away now.Tokyo is drawing a clear line in the sand as they want to keep their current system, where certain rice imports come in tariff-free, but they’re not budging beyond that.Implications and reactions in JapanThe trade mess is starting to cause political headaches back in Japan.Opposition leader Yuichiro Tamaki is going after the government, questioning why they’re being so secretive about what’s actually happening in these negotiations.Tamaki has emphasized that it’s risky to keep moving forward without getting everything nailed down in writing first. He’s especially worried about Japan’s car industry, which needs predictable trade rules to plan its business.When trade relations get shaky, automakers get nervous about their investments and supply chains.This whole rice fight really shows how Trump’s trade strategy has evolved. What started as a trade war with China has now spread to pressuring allies like Japan.It’s not just about tariffs anymore, as now the US is making specific demands about what countries should buy from American farmers.The post US-Japan trade talks falter over Trump’s rice demand: here's what we know appeared first on Invezz