Japan’s shift to US rice as prices soar 70% may allow some leeway in Trump tariff talks
World

Japan’s shift to US rice as prices soar 70% may allow some leeway in Trump tariff talks

Economy World


When a severe rice shortage sent prices skyrocketing in Japan last year, Tokyo restaurant owner Arata Hirano did what had once seemed unthinkable: he switched to an American variety.

The price of the Californian Calrose rice he buys has doubled since his first purchase last summer, but even so it is far cheaper than home-grown grains.

“Unless domestic prices fall below Calrose prices, I don’t plan to switch back,” Hirano said. His restaurant offers meal sets of fish, rice, soup and sides.

This willingness to embrace foreign rice may presage a seismic change in mindset for Japanese businesses and consumers – one that could allow Tokyo leeway to relax some restrictions if rice becomes a thorny topic in tariff talks with US President Donald Trump, who has called out Japan’s high levies on its staple grain.

Wholesale prices for domestic rice have surged about 70 per cent over the past year to hit their highest levels since current records began in 2006. Crops were affected by extreme heat while a tourism boom has added to demand. Worries abound that not much will change this year.

Customers eat cooked California-grown Calrose rice and side dishes at Shokudou Arata, a restaurant in Tokyo, Japan, on Sunday. Photo: Reuters

With inflation also raising the cost of living, businesses are now betting that a nation of people known for their discerning palates and pride in their staple grain is open to change.

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