Japan’s chief negotiator reached an agreement with U.S. Commerce Secretary Howard Lutnick in mid-June on a deal offering massive Japanese investment in the United States in exchange for a reduction in tariffs, sources close to the matter said Saturday.
Over the following month, Japan focused on convincing U.S. President Donald Trump through Lutnick of the advantages of the agreement, with the proposal of expanding imports of U.S.-grown rice used as the final bargaining chip.
The trade deal, announced by Trump on July 23, includes tariffs on Japanese cars set at 15 percent — lower than the 27.5 percent that was to have been levied — in exchange for $550 billion of Japanese investment in the United States.
During the course of the negotiations, which spanned around three months from mid-April, Japan identified Lutnick as the only person who could communicate “directly and on a deep level” with Trump due to their close friendship of over 30 years, and directed its efforts on him, according to one of the sources.
Ryosei Akazawa, Japan’s chief tariff negotiator, built trust with Lutnick not only through in-person talks but also through dozens of phone calls, the source said.
Believing that Lutnick placed a high priority on economic security amid China concerns, Japan emphasized its willingness to contribute to strengthening U.S. domestic supply chains and eventually reached an understanding with him.
https://japantoday.com/category/politics/japan-u.s.-ministers-reached-trade-agreement-in-mid-june-sources
