U.S. Trade Agreements with Japan and South Korea Near Completion
U.S. Commerce Secretary Howard Lutnick announced that written agreements on trade with Japan and South Korea are close to finalization. This development follows criticism of Japanese Prime Minister Ishiba, who avoided documenting the terms to expedite U.S. tariff reductions on Japanese goods. Tariffs on Japanese car imports will decrease from 27.5% to 15%.
- Country:
- Japan
U.S. Commerce Secretary Howard Lutnick revealed in a CNBC interview that the finalized documents for trade agreements with Japan and South Korea could be ready in weeks. This announcement comes amid political pressure on Japanese Prime Minister Ishiba, who is criticized for not ensuring a written U.S.-Japan trade deal. The Prime Minister justified this by prioritizing the swift reduction of U.S. tariffs on Japanese goods.
Lutnick confirmed a consensus between the United States, Japan, and South Korea regarding these trade agreements. The deal, established last month, involves a significant reduction in U.S. tariffs on Japanese car imports, lowering them to 15% from the previous 27.5% rate. However, the specific timeline for this change remains to be announced.
This progress in trade discussions is crucial for Japan amid Ishiba's challenging political scenario and the need to strengthen economic relations in the Asian region. These agreements symbolize strategic economic alignments among major global markets.
(With inputs from agencies.)
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