Trump Threatens 35% Tariffs on Japan. India Nearing Deal as Trade Deadline Looms.

President Donald Trump says negotiations with Japan have been tough. (AFP via Getty Images)

Japan is unlikely to secure a trade deal with the U.S. and tariffs on its goods could soar after President Donald Trump called the nation “spoiled” and reiterated his July 9 deadline for negotiations.

Trump on Tuesday said a deal with Tokyo is unlikely in the next few weeks. He then said Japan’s rate could end up at “30%, 35% or whatever the number is that we determine.” This is higher than the 24% initially set for the country when widespread tariffs were announced on April 2.

After the July 9 date passes, rates for nations that haven’t struck agreements with Washington will revert to the levels set out in Trump’s widespread April announcement.

The U.S. president on Monday cited rice as a sticking point in a social media post, and Japanese officials have said they won’t agree to any arrangement that keeps the 25% import duty on cars—the country’s biggest export to the U.S. Negotiations with the world’s fourth-biggest economy are showing just how tricky resetting the rules of trade can be.

“Japan is different from other countries as we are the largest investor in the United States, creating jobs,” Reuters reported Prime Minister Shigeru Ishiba as Wednesday.

On Tuesday, Trump told reporters that “We dealt with Japan, I’m not sure we’re going to make a deal. I doubt it with Japan. They’re very tough.” He added that “They and others are so spoiled from having ripped us off for 30, 40 years that it’s really hard for them to make a deal.”

It could be a different story for India, though. Trump told reporters aboard Air Force One that he believed India was ready to lower barriers for U.S. companies, according to a Reuters report. This could lead to an agreement to lower the 26% rate he announced for the nation in April.

“I think we are going to have a deal with India. And that is going to be a different kind of a deal. It is going to be a deal where we are able to go in and compete. Right now, India does not accept anybody in. I think India is going to do that, and if they do that, we are going to have a deal for much less tariffs,” Trump said.

Japanese stocks fell on Wednesday, with the blue chip Nikkei index finishing 0.6% lower. U.S.-traded shares of Japanese auto makers were mixed. American depositary receipts of Toyota Motor , the biggest car company, fell 0.1% in premarket trading after declining 0.4% on Tuesday. ADRs for Nissan fell 1.7% Tuesday. Honda Motor ADRs rose 1% before the market opened on Wednesday.

Write to Brian Swint at brian.swint@barrons.com