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Business Review Board / September 26, 2019

Trump Inks New Trade Deal With Japan

The deal is good news for America’s agricultural sector and will pressure China.

On Wednesday, President Donald Trump announced a new trade deal with Japan that specifically benefits the U.S. agriculture sector. The White House statement explains that “under a market access agreement, Japan will open their markets to approximately $7 billion in American agricultural exports and more.” The announcement further notes that “Japan will eliminate or significantly lower tariffs for American beef, pork, poultry, wheat, cheese, wine, certain nuts and berries, cherries, ethanol, and more — a major win for our farmers, ranchers, and growers.”

This is definitely good news for American farmers who have felt the brunt of tariffs in the long-running trade war with China. The Wall Street Journal, which has long voiced strong criticism of Trump’s tariff strategy, says, “The Japan deal be the President’s biggest trade victory in his first term.” Furthermore, it increases pressure on China to negotiate an end to the trade war.

While the Journal disappointedly observes that the trade agreement does not include any deal on motor vehicles, the White House statement does note that more may be coming in the future as “the United States will engage in further negotiations in the interest of achieving a final, comprehensive trade deal.”

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