by supplychainreport
The White House announced Monday that the United States and Japan plan to enter an initial trade agreement addressing tariff barriers, with discussions on details still ongoing. The announcement comes as both countries continue efforts to strengthen bilateral trade relations.
In a message to Congress, President Donald Trump stated that his administration has reached an initial agreement regarding tariffs with Japan and intends to formalize the deal in the coming weeks. While the specifics of the agreement are not yet finalized, it is expected to address tariff and digital trade issues.
Japanese officials noted that certain aspects, such as currency standards, are not included in the initial deal. Discussions continue regarding tariffs on Japanese automobile and auto parts exports, which remain a key focus for both sides. Analysts expect the agreement could include provisions for reduced tariffs on U.S. agricultural products and other exports to Japan.
Trade experts have described the approach as staged, with an initial agreement laying the groundwork for broader, future negotiations. “It’s clear we are moving in phases rather than expecting a comprehensive deal immediately,” said Dan Ujczo, international trade lawyer.
U.S. and Japanese trade officials have been in ongoing discussions for several months, with previous meetings in Washington indicating both countries’ interest in a bilateral trade accord. The agreement is expected to provide a boost to key sectors, including agriculture and manufacturing, while enhancing predictability in trade relations.
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