US, Japan eye possible small trade deal by September

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The deal could involve Japan offering US farmers new access to its market in return for Washington reducing tariffs on certain Japanese auto parts. TRUMP Japan

Donald Trump Trump and Shinzo Abe discussed trade in Osaka, Japan, during a Group of 20 meeting last month, but no details of their talks were released.

Such a deal would give Abe a win on autos, while helping Trump shore up support among farmers, an important constituency ahead of the 2020 presidential election. One of Trump’s first acts as president was to pull the United States out of that agreement’s predecessor, which killed the deal. Trump has threatened to impose 25% tariffs on imported Japanese cars on national security grounds but delayed those as trade talks continue.

Asked about the possibility of such a deal, a Japanese government official declined to comment but said working-level discussions on trade were underway.

 

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