Trade Deficit: Farm Goods and American Beef

trade deficit: The White House says it does not need to consult Congress, meaning domestic procedures in both countries have effectively wrapped up. ; Trump has pushed the deal as a way to shrink his country's massive trade deficit with Japan, and to mollify American farmers who were at a disadvantage against international competitors after his decision to withdraw from the Trans-Pacific Partnership regional free trade pact, according to The Japan Times. Japan will lower or remove tariffs on 7.2 billion in U.S. farm goods, including a gradual reduction of its 38.5 percent duty on American beef to 9 percent. The deal, agreed to by Prime Minister Shinzo Abe and U.S. President Donald Trump in September, was approved by the Upper House following its passage in the Lower House last month. Other U.S. products including pork, wine and cheese will also get greater market access, putting the United States on a level playing field with TPP members such as Australia and Canada. But the deal does not provide for the removal of the 2.5 percent tariff on Japanese automobiles, which Tokyo desperately wants and Washington had granted under the TPP before it pulled out. In return, the United States will remove or reduce duties on Japanese industrial goods such as manufacturing equipment and air conditioner parts. (news.financializer.com). As reported in the news.