Japan-US: Tokyo calls for expedited implementation of new trade agreement

The spokesman and chief cabinet secretary of the Japanese government, Yoshimasa Hayashi, said today that Japan will continue to urge the United States to quickly implement the contents of the bilateral trade agreement reached by the two countries, especially regarding the reduction of tariffs on automobiles and auto parts exported from the Asian country. The executive order The agreement signed by Trump provides for a “reciprocal” tariff of 15 percent on all goods exported to the US from Japan, which will take effect on August 7. The agreement reduces the tariff on imported cars from the current 27,5 percent to 15 percent. Hayashi emphasized that Japan will closely monitor the impact of the new US tariffs on exports.

Japan had requested the complete elimination of tariffs, but had to settle for a reduction to 15 percent after negotiations led by Economic Revitalization Minister Ryosei Akazawa, who emphasized that implementing the agreement could take time, citing the auto deal between the U.S. and the U.K. as an example. The auto sector is vital to the Japanese economy, and the higher tariffs imposed by the U.S. last April dealt a severe blow to Toyota, Honda, and other manufacturers heavily dependent on the U.S. market.