Monday, February 17, 2025

US Trade with Japan 2-17-25

Japan wants to buy liquid natural gas from the US. The US wants to complete the pipeline to accommodate shipping across the Pacific to Japan. The US wants more Japanese Auto Plants to open in the US and hire US auto workers if he can get the Corporate Tax lowered to 15%. The LNG would come from the oil fields in Alaska. 

Japan has no Tariffs on US cars, but they have a certification process. In 2023, Japan imported relatively few US-made vehicles or parts ($2.6 billion). 

Japan had tariffs on American goods, but the U.S.-Japan Trade Agreement (USJTA) has reduced or eliminated many of them. 

Explanation. The USJTA went into effect in 2020. 

Japan agreed to reduce or eliminate tariffs on many agricultural products, including beef, pork, and cheese. 

The US agreed to reduce or eliminate tariffs on many industrial goods, including machine tools, fasteners, and musical instruments. 

The USJTA also expanded tariff-rate quotas for some US products, including wheat. 

The USJTA also includes provisions to prohibit customs duties on digital products transmitted electronically. 

Japan assesses tariffs on goods based on their cost, insurance, and freight (c.i.f.) value. Japan also has a simplified tariff system for low-value freight. 

Norb Leahy, Dunwoody GA Tea Party Leader

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