US President Donald Trump said yesterday that he signed a trade agreement with Japan that could enter into force without the need for Congress’s approval, but declined to reassure that no customs duties would be imposed on cars imported from Japan.
White House’s Trump sent to Congress
In his letter, he said he intends to make an agreement on “customs duties and digital trade” in the coming weeks, and that this agreement will be covered by a trade law clause that allows the US President to make reductions in customs duties through official disclosure.
“I will also make an agreement with Japan in the field of digital commerce, which may come into force without the need of the Senate’s approval,” Trump said in his letter.
Both agreements are in the process of fast fast track onay approval and may enter into force without being submitted to Congress for approval. The Trump administration reported to Congress last year that negotiations with Japan began the same way.
Trump didn’t say anything about whether taxes were imposed on Japanese cars and auto parts that are important to Japan. The lack of exposure to Section 232, which included additional tax issues of up to 25%, was an important factor in Tokyo and Washington’s trade negotiations.
“We are planning to reaffirm that in the last case 232 will not be implemented,” chief negotiator Japanese Foreign Minister Toshimitsu Motegi said.