US, Japan seal limited trade deal, leave autos for future talks

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US, Japan seal limited trade deal, leave autos for future talks

On Wednesday, the 25th of September 2019, US President Donald Trump and his Japanese counterpart PM Shinzo Abe had stamped a small-scale trade deal, while Washington had agreed to slash tariff on Japanese machine tools and Tokyo slashed tariff on US firm goods, however, both parties had left auto tariffs for future talks.

On top of that, followed by release of the deal, US President Donald Trump had been quoted saying that the deal inked with Japanese PM Shinzo Abe would open up a nearly $7 billion worth of market for American products per annum, as Japan had agreed to cut tariff on US beef, pork, wheat alongside cheese.

In point of fact, latest US-Japan trade deal came forth amid a garrulous backdrop in the trade triangle beside the South Pacific, while Japan and South Korea had been facing off another streak of bitter trade relationship over renewed forced wartime labour issue.

Meanwhile, since South Korea had imposed an unofficial ban on Japanese products, roughly 10 to 15 per cent of Japan’s revenue generated from its trade with South Korea had been scuffling, while several analysts were quoted saying whether Japan, the third-largest economy across the globe, had delivered too much to win a free trade treaty with the United States.

Nonetheless, although Trump Administration had managed to curb out a smaller portion of its $67 billion trade deficit with Japan, but key source of Washington’s trade deficit with Tokyo, auto tariffs, remained untouched at the US-Japan limited trade deal.