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U.S.-Japan Deal “in Principle” Holds Promise for Motor Vehicle Parts Suppliers

Date: August 27, 2019

A trade deal was announced August 25 by President Trump and his Japanese counterpart, Prime Minister Shinzo Abe, at the G-7 Summit, and MEMA is encouraged by the news. The agreement, which at this point is only “in principle,” does not eliminate existing tariffs on motor vehicle parts entering the U.S. from Japan, although it could indicate that President Trump will not impose Section 232 tariffs on autos and motor vehicle parts. Since 2018, MEMA has supported a trade agreement with Japan that eliminates the threat of these Section 232 tariffs.

Japan is an important trading partner for U.S. motor vehicle parts manufacturers, and MEMA welcomes this opportunity for the U.S. to strengthen its trading relationship with Japan. MEMA looks forward to the opportunity to review the details.

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