Negotiations on a Major Trade Deal with Japan

Commerce Secretary Howard Lutnick shared insights on Thursday regarding his negotiations for a significant trade agreement with Japan, on behalf of the Trump administration.

On Wednesday, President Donald Trump announced the deal’s completion through a social media post. Lutnick discussed the six-month negotiation process with Japan during an interview with Dylan Housman, the editor-in-chief of the Daily Caller.

“Japan is dealing with 25% tariffs, and their automotive sector, understandably, found it impossible to sell vehicles to the US under such conditions,” Lutnick explained.

“This was my proposal, worked out over nearly six months. I presented it to the President in January. This was initiated by the Japanese government reaching out to Donald Trump,” he continued.

As part of the agreement, Japan is set to pay a mutual tariff of 15% to the United States. Lutnick reassured that the US would not incur additional mutual tariffs from these transactions.

He proceeded to elaborate on the types of investments Japan is committing to as a part of the trade agreement.

“For instance, important medications are not produced domestically; they mostly come from China. Antibiotics, for example, are manufactured there,” Lutnick remarked.

Housman interjected, noting, “[It’s] not safe.”

“We’re aiming to establish a generic medications project with the Japanese government. The commitment is $15 billion for the development of these medicines right here,” Lutnick added.

Lutnick speculated on additional projects that could bolster US economic progress. “We managed to create a pipeline in Alaska, and there are numerous initiatives we can pursue that would benefit the country,” he mentioned.

“When I say it’s historic, I mean it’s a substantial shift compared to what has happened in the past,” he concluded.