Trade agreement between USA and Japan includes export of Ford F-150 – Fipe Carros

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

Despite the announcement, there is still a lot of uncertainty surrounding the details of the agreement. One of the most controversial points is when the United States will reduce its own tariffs on Japanese cars, which currently amount to 27.5% — 2.5% of which are old and another 25% imposed by Trump during his government. The forecast is that this rate will fall to 15%, but there is still no defined schedule.

On Tuesday, Japanese negotiator Ryosei Akazawa embarked on his ninth trip to Washington since negotiations began. The main objective is to pressure the American government to issue the presidential decree that formalizes the reduction in tariffs on automobiles and parts before new rates come into force on Thursday.

Even with the promises made by Trump, the export of the F-150 to Japan may face practical issues. The model is considered too large for the country’s narrow streets — 2.4 meters wide with mirrors — in addition to having the steering wheel on the left side, unlike the Japanese standard.

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

Finally, another point that raises doubts is whether the 15% tariff limit will also apply to Japan or only to the European Union, as indicated by a recent American executive order. Meanwhile, conversations continue, with progress expected in the coming days.

Another point to be considered is that Nissan announced the closure of a historic factory in Japan amid the crisis, which demonstrates a challenging scenario for the automotive sector in the country. In fact, it is important to remember that Volkswagen suffered a loss of US$ 1.5 billion due to Trump Tariffs.