The United States and Japan worked hard to finish up provisions of a limited trade deal between the two countries for President Trump and Prime Minister Shinzo Abe to sign, Wednesday, at the United Nations. However, a sticking point over autos almost proved dangerous for agriculture?s interests in the deal.
Japanese trade negotiators asked for assurances that President Trump will not follow through on his threat to impose 25% national security tariffs on Japanese autos and auto parts. Because of this threat, the Japanese pushed for protection in the trade deal. These clauses aimed squarely at U.S. Ag.
The provision proposed by the Japanese would have given them a ?sunset clause.? This means if the President follows through on his tariffs, the Japanese could cancel the deal and slap retaliatory tariffs on ag products from the United States. President Trump gave no indication, Wednesday, of any exemption for Japan from these proposed tariffs.
On Tuesday, Iowa Senator Chuck Grassley said President Trump needed to give the Japanese the assurance they have been asking for and get the show on the road.
Senator Grassley said the President needs to stop using national security as a justification for imposing these tariffs.
According to Grassley, the deal will get back about 90 percent of what the United States lost by backing out of the Trans-Pacific Partnership. U.S. Competitors were taking advantage of the higher tariff rates we are paying. Ag supporters said we needed to get this deal done to gain momentum on USMCA, trade with China, and the European Union.
