Business Agreement between USA and Japan includes exports from Ford F-150-FIPE CARS

President Donald Trump said in an interview with CNBC that Japan will begin to import trucks Ford F-150 as part of a new trade agreement with the United States. According to him, the Asian country should also invest $ 550 billion in the US economy, which would be largely consisting of loans and guarantees, not direct investment.

Despite the announcement, there is still a lot of uncertainty around the details of the agreement. One of the most controversial points is when the United States will reduce their own rates on Japanese cars, which today add up to 27.5% – 2.5% old and another 25% imposed by Trump during his government. This rate is expected to fall to 15%, but there is no set schedule yet.

On Tuesday, Japanese negotiator Ryosi Akazawa embarked for Washington on his ninth trip since the beginning of the negotiations. The main objective is to press the US government to issue the presidential decree that formalizes the reduction of tariffs on cars and parts before new rates enter into force on Thursday.

Even with Trump’s promises, F-150 exports to Japan can bump into practical issues. The model is considered too large for the narrow streets of the country – with 2.4 meters wide with mirrors – besides having the steering wheel on the left side, unlike the Japanese pattern.

Still, Trump’s speech reinforces the weight that this agreement can have for the automotive industry and the business relationship between the two countries. The idea of exporting the popular American pickup symbolizes US attempt to expand its presence in external markets.

Finally, another point that generates doubts is whether the 15% rate of tariffs will also be valid for Japan or only to the European Union, as a recent American executive order indicates. Meanwhile, conversations continue, with expectation of advances in the coming days.

Another point to be considered is that Nissan announced the closure of historic factory in Japan in the midst of the crisis, which demonstrates a challenging scenario for the automotive sector in the country. Even it is important to remember that Volkswagen bitter $ 1.5 billion with Trump fees.