President Trump said Wednesday that new trade talks with Japan would be aimed at getting the Japanese to buy more products from the U.S., as the administration said that negotiations would include American auto and agricultural exports.
“I said, you’re going to have to do me a favor and buy more,” Trump said at a press conference in New York City, adding later, “I think we’re going to make a deal. Will we make a deal? I don’t know.”
Earlier in the day, White House officials said the countries would launch new trade talks to lower tariff barriers, but did not specify a date and indicated that firm agreements have been made as yet. A statement by the administration said the talks would cover market access for U.S. autos in Japan and discuss mutual access for agricultural products as well.
“The United States and Japan will enter into negotiations, following the completion of necessary domestic procedures, for a United States–Japan Trade Agreement on goods, as well as on other key areas including services, that can produce early achievements,” the White House said in a statement
The plan for the talks was hammered out in a meeting between U.S. and Japanese negotiators at the United Nations Tuesday. “We basically shared the view on a framework and steps for boosting bilateral trade,” Japan Economic Revitalization Minister Toshimitsu Motegi told reporters, according to the Japan Times. Motegi said the countries were making “efforts to bridge the gap” on tariffs.
Sources with knowledge of the deal said it would likely use what the U.S. negotiated with Japan as part of the Trans-Pacific Partnership, which Trump formally exited as one of his first actions as president, as a jumping-off point. Lowering Japan’s agriculture tariffs was likely to be one aspect of it.
The Commerce Department is overdue to release a report on whether the U.S. impose tariffs on autos and auto part imports. Japanese officials are reportedly seeking an exemption to any tariffs that would be imposed, which would hit their domestic industries hard.
Republicans applauded the news. “I have long called for a strong U.S.-Japan trade agreement. It is a welcome step that the administration is prepared to undertake those negotiations,” said Sen. Orrin Hatch, R-Utah, chairman of the Senate Finance Committee.
