US-JAPAN TRADE DEAL HITS SNAG
Tokyo wants ‘sunset clause’ that cancels US benefits if Trump imposes tariffs on Japanese cars
AUnited States-Japan trade deal hit a lastminute snag as Japanese officials sought assurances that the Trump administration will not impose national security tariffs on Japanese built cars and parts, said people familiar with the talks on Monday.
US President Donald Trump and Japanese Prime Minister Shinzo Abe have been aiming to sign a trade deal at a meeting this week during the United Nations (UN) General Assembly in New York that provides increased access to Japan for US agricultural goods and bilateral cuts in industrial goods tariffs.
But the limited trade deal is not expected to include changes to tariffs and trade rules governing vehicles, the biggest source of the US$67.6 billion US trade deficit with Japan.
Trump has refrained thus far from following through on his threat to impose tariffs of up to 25 per cent on Japanese and European car and parts imports, citing ongoing trade negotiations with these partners.
The New York Times earlier reported that Japan was demanding a “sunset clause” that would cancel any trade benefits for the US if Trump imposed the tariffs on Japanese vehicles.
Japanese Foreign Ministry spokesman Masato Ohtaka said that Japan still hoped to sign the US trade deal by the end of this month and that there was still time to work out remaining issues.
“Frankly speaking, we still have some time and all my colleagues in the government are making their best efforts to actually meet this target,” said Ohtaka.
In Tokyo, Japanese Chief Cabinet Secretary Yoshihide Suga told a news conference: “With the UN General Assembly meeting in mind, we are accelerating the remaining work, including the wording of a trade agreement.”
Executives at two carmakers briefed on the matter said Japan had expressed concerns about signing a deal without assurances that Trump would refrain from imposing tariffs on Japanese automotive exports as he benefits from Japanese agricultural concessions.
Asked about the US threat of added tariffs on Japanese cars, Motegi said: “I think the content will not be something to worry about.”
Details of the US-Japan trade deal have not been disclosed, but people familiar with it say it will provide US farmers increased access to Japan markets, including for American beef and pork.