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.

The 90-day deadline was due on July 9, with dozens of economies, including the EU, India and Japan, facing tariff hikes without a deal. But days before it arrived, Trump issued a delay to August 1. It was his second extension since unveiling the tariffs in April – reigniting the “TACO Theory” that has gained traction among some Wall Street traders.

By Jarrett Renshaw, Bhargav Acharya and Cassandra Garrison WASHINGTON/MEXICO CITY (Reuters) -President Donald Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1,