President Donald Trump and Japanese Prime Minister Shinzo Abe signed a trade agreement on Wednesday, limited in scope but allowing Japan to avoid the threat of new U.S. tariffs on Japanese cars for now.
During a meeting in New York, on the margins of the UN General Assembly, Trump and Abe signed the agreement they had signed during the G7 summit a month ago in Biarritz (France).
According to Trump, the pact will open the Japanese market to about “$7 billion” in U.S. products each year, because Tokyo is committed to eliminating or reducing tariffs on 90 percent of the agricultural goods it imports from the United States.
Specifically, Japan will gradually reduce tariffs on U.S. beef, pork, and cheese, and completely eliminate tariffs on almonds, nuts, cranberries, cranberries, corn, and broccoli, according to the U.S. Bureau of Foreign Trade.
In return, the United States will reduce tariffs on $40 million worth of Japanese agricultural products by 2018, including certain perennials and flowers, green tea, chewing gum and soy sauce.
“This will have a very wonderful positive impact on the global economy,” Abe told the meeting.
Trump hoped to be able to reach a “broader” agreement with Japan “in the not-too-distant future”.
Although the agreement does not cover automobiles, Abe said he had received assurances from Trump that he would not be imposing tariffs on automobiles with which he has threatened several countries on Japan. Both countries are expected to begin a new round of negotiations in April 2020 that will include that issue.