US-Japan Trade Talks Conclude But Early Conclusion In Doubt

Japan will not be able to concede on ag trade issues before the July Japanese elections, Japanese Prime Minister Shinzo Abe told President Donald Trump Friday, according to the Financial Times. U.S. Ambassador to Japan William Haggerty told the paper that Trump was "very clear in reminding the prime minister ... that his goal is to achieve a more reciprocal relationship with Japan." Trump urged Abe to reduce tariffs on U.S. farm goods, again signaling he could levy tariffs on the approximately 1.7 million cars that Japan sends annually to the United States as negotiating leverage. Trump said that Japan “puts very massive tariffs on our agriculture.” But he added, “We do not tariff their cars so I think that (is) something we will work out.” Abe pointed out that Japan accounts for tens of billions of dollars of investment in the U.S., along with tens of thousands of jobs created by that investment. Trump said he would like to possibly sign a deal during his planned trip to Japan in late May for the enthronement of Japan’s incoming emperor, Naruhito. The Group of 20 summit meeting is scheduled for the Japanese city of Osaka in June, while the Group of 7 meeting is set for France in August and the East Asia Summit in Thailand. Japan's chief trade negotiator Toshimitsu Motegi said that a trade deal with the U.S. could require U.S. congressional approval, a sign that Japan could be looking at seeking major concessions from the U.S. in exchange for opening their agricultural markets.