#BTC 'Playing with You' Agreement Japan Version | Japan: Trump says the claim that 'Japan will invest $550 billion' is inaccurate, it may only be 1% to 2%

Japan is formulating a framework to monitor the progress of its tariff agreement with the United States, as the Trump administration has indicated that if it believes Tokyo is insufficient in its procurement and investment commitments, it may raise tariffs again.

The two sides reached an agreement last week to reduce the 'reciprocal' tariffs on U.S. goods from the originally planned 25% to 15%, and to lower the total import tariff on cars from 27.5% to 15%.

Tokyo hopes the new 'reciprocal' tariff rate will take effect on August 1, when the comprehensive tariff suspension measures announced in April will expire, and also hopes to reduce car tariffs as soon as possible. However, Washington has not yet confirmed these two dates.

Japan's chief trade negotiator Akizawa said on Saturday to Japan's public broadcaster NHK that Tokyo is determined to urge the White House to 'quickly issue an executive order to reduce tariffs.'

As the U.S. is busy negotiating with several major trading partners, Japan has indicated that the two sides will not jointly draft a written agreement.

Source: Reuters

Given the challenges facing Japan's automotive industry - according to Akizawa, some companies are losing 100 million yen (approximately $674,000) per hour - Tokyo seems more inclined to reach an agreement swiftly rather than spending time drafting written documents.

Japanese Prime Minister Shigeru Ishiba stated on Friday at the government's U.S.-Japan tariff negotiation working group meeting, 'In the future, it will be extremely important for both Japan and the U.S. to steadily implement the agreement and quickly achieve results that promote mutual interests.'

Ishiba strengthened the team led by Akizawa and Chief Cabinet Secretary Yoshihide Suga, instructing them to oversee the progress of the agreement's implementation.

A senior economic policy official stated that the implementation of the agreement will involve numerous areas and will involve multiple agencies.

U.S. Treasury Secretary Scott Pruitt stated last Wednesday on Fox News that the U.S. will assess Japan's compliance with the agreement every quarter, and if Trump is not satisfied, 'they will revert to the 25% tariff rate.'