US President Donald Trump has said his administration will enter into an initial trade accord with Japan in the coming weeks. The partial accord excludes autos, which are a major element in the US's large trade deficit with Japan and it's a sensitive area that could still potentially scupper a final trade agreement between the two countries.
According to Bloomberg, Japanese Foreign Minister Toshimitsu Motegi said Tokyo wanted to see the Trump administration lay to rest the threat of new auto tariffs before agreeing to a final trade deal.
Go deeper with GlobalData
"We are aware of the internal process that is going on in the US and the president's notice of the US-Japan trade negotiations," Motegi told reporters in Tokyo. He added that language assuring Japan on car tariffs was under consideration.
Donald Trump said in a statement: "My administration looks forward to continued collaboration with the Congress on further negotiations with Japan to achieve a comprehensive trade agreement that results in more fair and reciprocal trade between the United States and Japan."
Bloomberg noted there was no mention by Trump if he'll end the threat to impose tariffs on Japanese auto imports as part of the trade deal. Under an earlier proposal, Japan would cut tariffs on US agricultural products, including beef, pork, dairy products, wine and ethanol. The US would cut levies on some Japanese industrial products, but not on cars.
Trump's administration earlier this year delayed a decision until November over whether to impose new levies of as high as 25% on imported vehicles over national security grounds to allow more time for talks with Japan and the European Union. Bloomberg reported that he also agreed with Japan that there would be no new tariffs while trade talks continue.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
