TPO-If the negotiations for the upcoming trade agreement do not achieve success, the Japanese cars will most likely suffer an increase in import duties into the US market.
Currently, US President Donald Trump is very focused on trade agreements with Europe, Mexico, China and Japan. In which, the United States has imposed taxes on steel products and imported cars from abroad, but avoided commercial warfare with Mexico and reached a temporary agreement with Europe and Japan.
Recently, Reuters said the US intended to be with the same table with Japan to come to an official trade agreement on September 9 this year. The 3 industries, involving agricultural and automotive products, will be brought to negotiate by President Donald Trump and Prime Minister Shinzo Abe in the upcoming New York meeting.
If successful, this agreement will help the US randoers access the Japanese market, in return the United States will reduce taxes for imported cars that are produced at “Land for Rising Sun”. A source that confirms Mr. Trump and his administration also wishes to include both beef and pork items in the aforementioned agreement.
Japanese car manufacturers are also being “eager” as a result of the negotiation. At the same time, if he reached his final agreement, Trump will most likely have the support of the farm owners in the upcoming elections in 2020.
Previously, President Trump has also voiced that Japan should buy more from the US while in the opposite direction, “Country region of the Far East ” says America should “produce better cars “. Consumers in America Love SUV’s and crossover, but most of them are too large for streets in Japan.
If this agreement fails, the U.S. president threatens to increase the import duties by 25% for vehicles from Japan on the reason of national security. An unknown source said: “We understand each other that we should find the point where we can go to the final agreement “; While another person expresses, the agreement needs to be overarching with the “all products, not just stopping in cars and agricultural products” to be able to succeed.
The United States Trade Representative Office has not yet made a comment about the above words, but Japanese automobile manufacturers and farm owners in the US are sure to carefully monitor every movement of the two governments over the 9th month.