U.S. And Japan May Have Sticky Wicket In Trade Talks

New York — The United States and Japan have been working hard to finish up provisions of a limited trade deal between the two countries for President Trump and Prime Minister Shinzo Abe to sign this week at the United Nations. However, there may be a sticking point over autos which could prove dangerous for agriculture’s interests in this deal.

Japanese trade negotiators are asking 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 are pushing for protection in the trade deal. These clauses are aimed squarely at U.S. Ag.

The provision proposed by the Japanese would give 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.

Iowa Senator Chuck Grassley says President Trump should give the Japanese the assurance they have been asking for and get the show on the road.

For the complete article from the Iowa Agribusiness Radio Network CLICK HERE



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