According to a report this week, the United States of America has agreed to not increase tariffs, or even add curbs to quota imports in regard to cars made in Japan, when both countries meet sometime next week.
Autonews revealed that this pledge is a part of a joint statement from both leaders in regard to trade, one that is set to be released following a meeting taking place between Japan’s Prime Minister Shinzo Abe and U.S. President Donald Trump. Said meeting is taking place in New York, sometime during the week of September 23rd.
Both Tokyo and Washington agreed to base elements of their trade deal in August during the Group Seven Summit, on the sidelines of the event. Abe and Trump have both stated their hope is to sign the agreement sometime in September.
The limited trade deal will see Tokyo make concessions to U.S. agricultural imports, while Washington would refrain from increasing tariffs when it came to cars from Japan; something President Trump had said he may do, earlier on in the year.
If finalized, the agreement would reduce any trade friction within the two allies, during a time when America is quite locked in a trade war with China. Having said that, both China and the U.S. are hitting the negotiation table once again, in hopes to cool this all down. Deputy-level talks will help to prepare the globe’s two largest economic powers for their 13th round of trade discussions, scheduled to take place this October in Washington. Still, the two countries have been close to finding a mutual agreement in the past, only to see talks cease. Back in May, China was accused by America of backtracking close to all aspects of the deal, and 48 hours later, they increased tariffs on $200 billion Chinese goods by more than double.
Here’s hoping these two countries can come to an agreement and soon.