US and Japan formally signed a “first-phase” trade agreement yesterday, covering US agricultural products as well as Japanese machine tools. The threat of auto tariffs should also be averted even though it’s not clearly written. US President Donald Trump expected the deal to open up Japanese markets to USD 7B in goods including beef, pork, wheat and cheese.
Japanese Prime Minister said at a press conference that “between President Trump and I, myself, this has been firmly confirmed that no further, additional tariffs will imposed”, referring to auto tariffs. And, “with the entry into force of our trade agreements, I believe both of our economies will be able to further grow and develop.”
US Trade Representative Robert Lighthizer indicated that issues of autos would be tackled in a later round of negotiations, expected to start next April.
