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Trump’s 35% tariff threat feeds Japan’s worst-case scenario fear

Yoshiaki Nohara, Alice French and Alastair Gale / Bloomberg
Yoshiaki Nohara, Alice French and Alastair Gale / Bloomberg • 6 min read
Trump’s 35% tariff threat feeds Japan’s worst-case scenario fear
While few analysts see Japan’s stocks collapsing on a no-deal scenario, some of them forecast the Nikkei 225 to fall into the 38,000 range. Photo: Bloomberg
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US president Donald Trump threatened Japan with tariffs of up to 35% as he ramped up tensions for a third straight day, fueling fears of a worst-case scenario among market players and raising doubts over Tokyo’s tactics in trade talks.

Japan should be forced to “pay 30%, 35% or whatever the number is that we determine, because we also have a very big trade deficit with Japan,” Trump said, again flagging the possibility that across-the-board tariffs could go much higher than the 24% initially penciled in for July 9.

“I’m not sure we’re going to make a deal. I doubt it with Japan, they’re very tough. You have to understand, they’re very spoiled.”

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