The United States and Japan are on the verge of entering into an initial trade accord over tariffs, and it appears that vehicles manufactured in the Land of the Rising Sun will not be hit with higher import tariffs.
President Donald Trump has long been frustrated with the number of cars Japanese automakers sell in the States and the limited quantity of U.S.-made cars sold in Japan. Subsequently, he threatened to impose a 25 per cent tariff on autos and auto parts imported from Japan as well as other countries, but, according to the Tokyo Shimbun, this will not happen after all, Auto News reports.
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It is believed that the U.S. and Japan agreed to core elements of a new trade deal during last month’s G7 Summit. Both President Trump and Japanese Prime Minister Shinzo Abe said they were confident an agreement would be signed this month. Confirmation of the deal could come after a meeting between the two heads of state in New York next week.
The new trade deal will see Japan make various concessions on agricultural imports from the United States. Nevertheless, U.S. News reports that Japanese Foreign Minister Toshimitsu Motegi wants to reconfirm with the U.S. that Japanese vehicles will indeed not be hit with new tariffs.
"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," a White House statement quoting President Trump reads.