Commodity Roundup: Trump threatens tariffs on Japan over rice exports; Palladium jumps 23%

[A family harvesting organically grown rice and a family friend helping them.]
Susumu Yoshioka/DigitalVision via Getty Images

US President Donald Trump ramped up trade pressure on Japan with tariff threats targeting rice and automobiles ahead of a crucial July 9 deadline, signaling a revival of hardline trade tactics.

“They won’t take our RICE, and yet they have a massive rice shortage. In other words, we’ll just be sending them a letter, and we love having them as a Trading Partner for many years to come,” Trump said in a post on Truth Social.

According to U.S. Census Bureau trade data, Japan imported $298 million worth of American rice last year. From January to April this year, it purchased an additional $114 million.

While Trump imposed a sweeping 10% tariff on imports from most trading partners in April, he unveiled -- then paused -- higher rates on dozens of economies to allow room for negotiations.

Rice futures dipped below $13 per hundredweight on Tuesday —their lowest level since mid-May—as abundant harvests from major exporting countries saturated the market.

India’s monsoon-driven harvest is projected to hit a record 146 million tonnes, with government reserves at 59.5 million tonnes. In response, New Delhi is redirecting 5.2 million tonnes for ethanol production and making additional supplies available for export.

Elsewhere, palladium futures (XPDUSD:CUR [https://seekingalpha.com/symbol/XPDUSD:CUR]) rose to $1,106/oz, up 23.37% from the previous day.

The move higher has been driven primarily by a weaker dollar (DXY [https://seekingalpha.com/symbol/DXY]), supply concerns, and increased investor interest in precious metals as a hedge against economic uncertainties.

Additionally, low liquidity in palladium futures could amplify upside moves, making it an attractive risk-reward play for 2025, especially if prices break $1,255, Andrew Hecht, a Wall Street veteran covering commodities and precious metals, said. [https://seekingalpha.com/article/4796657-palladium-attempts-a-rally-the-pall-etf-tracks-palladium-prices]

MORE ON PALLADIUM FUTURES, RICE FUTURES, ETC.

* Palladium Attempts A Rally: The PALL ETF Tracks Palladium Prices [https://seekingalpha.com/article/4796657-palladium-attempts-a-rally-the-pall-etf-tracks-palladium-prices]
* Agricultural Commodities And The DBA ETF: The Bull Market Remains Intact [https://seekingalpha.com/article/4789934-agricultural-commodities-and-the-dba-etf-the-bull-market-remains-intact]
* Goehring & Rozencwajg Q1 2025 Natural Resource Market Commentary [https://seekingalpha.com/article/4789390-goehring-and-rozencwajg-q1-2025-natural-resource-market-commentary]
* Commodity Roundup: Oil faces biggest weekly drop since March 2023 as geopolitical fears ease; gold falls again [https://seekingalpha.com/news/4463170-commodity-roundup-oil-faces-biggest-weekly-drop-since-march-2023-as-geopolitical-fears-ease-gold-falls-again]
* Commodity Roundup: Gold steadies after two-day slide as markets watch Iran-Israel ceasefire; Brent rises 1.5% [https://seekingalpha.com/news/4461974-commodity-roundup-gold-steadies-after-two-day-slide-as-markets-watch-iran-israel-ceasefire-brent-rises-15]