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US and Japan Make Trade Deal

Donald Trump and Shinzo Abe agree on trade.

President Trump recently traveled to France for the G7 summit, which took place on August 24 and 25. The G7 is an international meeting of seven countries, including France, Germany, Italy, Canada, Japan, the United Kingdom and the Unites States.

During the G7, President Donald Trump and Japanese Prime Minister Shinzo Abe announced that they had made a trade agreement. The deal will concentrate on farming, industry, and digital trade. Japan is expected to buy $7 billion of US farm products – this is “very good news” for American farmers and ranchers.

The Deal

Japan will buy more corn, wheat, pork, dairy, beef, and wine from the US. In exchange, the US will cut tariffs on some Japanese products. Tariffs are taxes that governments take when items are moved from one country to another. For example, if the US buys cars from Japan, it takes some money in tax when the cars arrive in the country. Since tariffs make items more expensive, countries can make trade agreements to stop using them.

Trump and Abe have agreed on a deal but the next step is putting it on paper. The leaders said they expect to sign an official deal in September.

The Reaction

Shinzo Abe and Donald Trump

The US-Japan deal was a surprise, since most people thought it would take a long time for the countries to agree on trade. It is possible that both Trump and Abe wanted to reach a deal quickly. The Japanese economy is facing some problems, so a new trade deal could help the situation. Meanwhile, in the USA, Trump is facing an election soon and so he may think it is a good idea to help farmers and the economy, so that people vote for him.

*This article is adapted from “Japan Trade – Eastern Leverage Or Russian Roulette?” by Andrew Moran.
Andrew Moran

Economics Correspondent at LibertyNation.com and LNGenZ.com. Andrew has written extensively on economics, business, and political subjects for the last decade. He also writes about economics at Economic Collapse News and commodities at EarnForex.com. He is the author of “The War on Cash.” You can learn more at AndrewMoran.net.

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