Although the specifics remain unclear, both parties called the pact a success. Trump appears to view it as a huge deal, while Ishiba characterised it in less grandiose terms. Ishiba pointed out that among countries with a trade surplus with the United States, Japan negotiated the lowest tariff rate. Furthermore, for automobile exports, Japan secured a 15% tariff without any volume restrictions, in contrast to the UK\u2019s arrangement. Regarding the politically sensitive matter of agricultural products, Ishiba stated that, while Japan will increase US rice imports within the existing quota, it won\u2019t compromise the domestic agricultural market.<\/p>\n
The trade deal largely aligns with our initial forecasts. It\u2019s expected that Japan will increase direct investment in the US, such as LNG projects in Alaska, and boost imports of US goods, including agricultural products. But, the implementation of a 15% tax on cars without a limit is a surprise. Ongoing uncertainty regarding Japanese politics — including reports Ishiba will step down soon — and the exclusion of defence spending from the agreement may introduce complexities to the negotiation process.<\/p>\n
We think that the US aims to finalise the deal before August and encourage other trading partners to participate in negotiations. Including defence spending in the discussions could potentially extend the timeline for reaching an agreement. The US-Japan deal will put more pressure on other major Asia exporters to secure better deals. We\u2019ve already seen trade deals with the Philippines and Indonesia. Before 1 August, there should be more deals struck with Asian exporters. <\/p>\n","protected":false},"excerpt":{"rendered":"Although the specifics remain unclear, both parties called the pact a success. Trump appears to view it as…\n","protected":false},"author":2,"featured_media":17236,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-17235","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/17235","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=17235"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/17235\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/17236"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=17235"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=17235"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=17235"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}