President Trump announced a new trade deal between the United States and Japan on Sunday, Aug. 25—Japan will buy large quantities of U.S. corn and wheat, and said the wheat purchase was “massive,” and a “very, very large order of corn.”
The deal was announced in Biarritz, France, at the Group of Seven summit, and is expected to be signed next month during the United Nations General Assembly in New York. “We’ve agreed in principle,” Trump said. “We’ve agreed to every point.”
“It’s billions and billions of dollars. Tremendous for farmers and one of the things that Abe has also agreed to is we have excess corn in various parts of our country with our farmers because China did not do what they said they were going to do, and they are going to be buying all of that, and that’s a very big transaction,” said the president.
“This is a tremendous deal for the United States,” Trump said after announcing the deal with the Japanese Prime Minister, Shinzo Abe. “It’s a, really, tremendous deal for our farmers and agricultural ranchers, and also involves other things.”
Japanese farmers have had pest problems with corn crops, “We believe that there is a need for us to implement emergency support measures for the Japanese private sector to have the early purchase of the American corn,” Abe said. “We look forward to finishing the additional work and having it be implemented as soon as possible in Japan and the United States,” he added.
Japan is also expected to cut tariffs on American beef, pork, and agricultural products.
U.S. Trade Representative Robert Lighthizer said the deal would open markets to $7 billion of products including ethanol, as well as pork, beef, dairy products, and wine, and U.S. tariffs on certain industrial products will see a reduction, but no change is tariffs on cars.
“We look forward to finishing the additional work and having it be implemented as soon as possible in Japan and the United States,” he said.
President Trump has formed a strong friendship with Abe since beginning his term in the White House, and the president disclosed the trade talks were a culmination of the past five months of dialogue.