TOKYO, Aug 28 – Japan’s top trade negotiator, Ryosei Akazawa, has cancelled a visit to the United States to finalize a $550 billion investment package offered by Tokyo in exchange for relief on punishing tariffs. The package, which includes government-backed loans and guarantees, was agreed upon in July to set a reduced 15% tariff on imports from Japan in exchange for U.S.-bound investment. However, details of the package remain unclear.
Japanese officials have stressed that the investments will be determined based on whether they will also benefit Japan. The United States has agreed to amend the July 31 presidential order to ensure that a 15% levy agreed last month on Japanese imports is not stacked on goods subject to higher tariffs. U.S. officials have also said Trump would issue another order to lower tariffs on Japanese cars to 15% from 27.5%, but did not specify when.
Japan’s exports posted the biggest monthly drop in four years in July, driven by a slump in shipments to the United States. As a result, Japan cut its growth outlook for the year from 1.2% to 0.7% earlier this month. Akazawa could head to Washington as early next week after the outstanding issues are resolved.
With information from Reuters
AloJapan.com