Trump says the United States concludes trade agreements with Japan, no words about cars

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WASHINGTON (Reuters) – US President Donald Trump said on Monday that Washington has signed trade agreements with Tokyo that could be implemented without congressional approval, without giving Japan assurances that the new tariffs would not be charged. vital exports of automobiles.

Trump says the United States concludes trade agreements with Japan, no words about cars
US President Donald Trump addresses the media before embarking on Marine One for a trip to New Mexico, on the South Lawn of the White House in Washington, DC, on September 16, 2019. REUTERS / Sarah Silbiger.

In a letter to the US Congress released by the White House, Trump announced plans to reach agreements on tariff barriers and digital commerce "in the coming weeks" and warned lawmakers that the tariff agreement would be concluded under 'a commercial law. provision allowing the President of the United States to effect reciprocal tariff reductions by proclamation.

"In addition, I will also conclude an executive agreement with Japan on digital commerce," Trump said in his letter.

Neither agreement would require a congressional vote as part of the "expedited" approval process. Last year, the Trump administration informed Congress that it would continue negotiations with Japan according to this method.

On a crucial issue for Japan, Trump's announcement does not indicate whether it has agreed not to impose a threat on Japanese national vehicle and auto parts tariffs. Avoiding "Section 232" tariffs of up to 25% was a major motivating factor for Tokyo in trade negotiations.

"At the final stage, we plan to reconfirm that $ 232 will not be taxed," Foreign Minister Toshimitsu Motegi, Japan's chief negotiator, told reporters on Tuesday at a press conference in Tokyo.

Finance Minister Taro Aso said the deal would not contain any currency provisions – another area of ​​concern for Tokyo. Japan wants to avoid any deal that could hamper its ability to intervene in the currency markets in the event of a yen surge or to reinforce the massive monetary stimulus measures of the Bank of Japan.

After the G7 summit last month, Trump said he was not considering auto tariffs "for the moment."

Over the past year, the scope of negotiations has narrowed to exclude the auto sector, which accounts for most of the $ 67 billion trade deficit with Japan.

In August, Trump and Prime Minister Shinzo Abe announced an agreement in principle on an agreement covering tariff cuts on agricultural and industrial products, but not on motor vehicles.

A spokesman for the US Trade Representative, Robert Lighthizer, could not be immediately contacted to comment on the letter and trade agreements.

Trump and Abe said at the G7 summit in France that they hoped to sign the agreement at this month's UN General Assembly in New York.

Trump's letter did not reveal any content of the agreements, but Japan had previously said it was ready to consider an agreement that would reduce agricultural tariffs to levels previously contemplated in the Trans-Pacific Partnership, a trade deal that Trump canceled on day three. from his office in 2017.

Trump's letter indicated that the United States would continue its trade negotiations with Japan.

"My administration looks forward to continuing its collaboration with the Congress on the continuation of negotiations with Japan for the conclusion of a comprehensive trade agreement that will lead to fairer and reciprocal trade between the United States and Japan", said Trump.

US technology leaders believe they expect the Digital Trade Agreement with Japan to be closely aligned with the provisions of the new US-Mexico-Canada (USMCA) agreement, which follows the model American Internet Development.

The provisions of the USMCA are intended to ensure the free flow of data across borders without imposition, to prohibit data server location requirements and to limit the ability of governments to require disclosure of source code by the companies they serve. regulate.

For Trump, the signing of even a partial trade deal with Japan, focused mainly on agriculture, would provide some relief to US farmers hit by a 14-month US-China trade war and losing market share.

Report by David Lawder and Eric Beech in Washington, and Kiyoshi Takenaka and Tetsushi Kajimoto in Tokyo; Edited by Shri Navaratnam and Sandra Maler

Our standards:The principles of Thomson Reuters Trust.



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