Japan fails to win deal on steel tariffs with U.S.
Trump tells PM Abe that trade deficit too high to consider exemption
PALM BEACH, FLA.— U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe said Wednesday they had failed to reach a deal that would exempt Japan from new U.S. steel and aluminum tariffs, as Abe had wanted.
Instead, the leaders announced they had agreed to start talks on a new “free, fair and reciprocal” trade agreement between the two countries following two days of talks.
“If we can come to an arrangement on a new deal, that would certainly be something we would discuss,” Trump said when asked about the tariffs during a joint press conference at his private Mar-a-Lago club.
But he said the current trade deficit between the two countries was too high to merit an exemption now. According to the U.S. Department of Commerce, the trade deficit was $56.1 billion last year.
It was a disappointment for Japan. Most other key U.S. allies — among them Australia, Canada, the European Union and Mexico — have already been granted exemptions to Trump’s protectionist measures. And Japan has previously voiced reluctance to negotiating a bilateral trade deal with the U.S., saying it would prefer the U.S. rejoin the Trans-Pacific Partnership.
But Abe, whose visit comes as Trump prepares for a historic summit with North Korean leader Kim Jong Un, appeared to win assurances from Trump that he and the president were on the same page when it comes to the Kim meeting.
Perhaps the most significant for Abe: Trump’s promise to raise with Kim the issue of 17 Japanese citizens who have been abducted by the North.
The U.S. has also been pushing for the release of three Americans held captive. CIA Director Mike Pompeo raised their plight during his secret meeting earlier this month with Kim, according to a senior White House official who was not authorized to disclose the sensitive discussions and spoke to The Associated Press on condition of anonymity.
Trump expressed optimism Wednesday, saying that officials had been working “very diligently” to secure the Americans’ return and that there was a “good chance” it would happen.
The visit included a mix of business and pleasure. Trump and Abe spent Wednesday morning golfing at one of the president’s nearby golf courses. On Tuesday evening, the president and first lady hosted Abe and his wife at an intimate al fresco dinner on Mar-a-Lago’s patio.
Despite their disagreements, officials from both countries insist the personal relationship that Trump and Abe share has never been stronger. The leaders have bonded over “golf diplomacy” in both the U.S. and Japan, and U.S. officials note that Trump has met with Abe more than any other foreign leader.