U.S. President Donald Trump notified Congress of his intention to sign an initial trade agreement with Japan on tariff barriers in the coming weeks.
In a letter to Congress, Trump also said he would be signing an executive agreement with Japan on digital trade. Details of both agreements were not disclosed.
According to earlier reports, Japan will phase out 15% import duty on U.S. wine over time, while the U.S. is expected to pledge not to increase duties or introduce quotas on Japanese vehicles. The Japanese tariffs are expected to be removed over a period of five to seven years.
Trump and Japanese Prime Minister Shinzo Abe had agreed in August on the outline of a trade deal covering agriculture, industrial and digital sectors that is expected to be signed in September.
Japanese Finance Minister Taro Aso said a bilateral trade deal between the U.S. and the East Asian nation will not include a currency provision, Reuters reported. The potential deal will also not lead to an expansion of Japan's quotas for rice imports from the U.S., people familiar with the accord told Bloomberg News.
