Trump says Japan will import ‘beautiful’ Ford trucks

TOKYO - Japan will start importing Ford’s chunky F-150 pickup trucks, US President Donald Trump said, as uncertainties surround the two countries’ trade accord.

Under the deal announced in July, Japanese imports will be subject to

a 15 per cent “reciprocal” tariff

, down from a threatened 25 per cent.

These will take effect, like for a raft of other countries, from Aug 7.

In return, the White House said Tokyo will lift “restrictions” on American cars shipped to Japan, including accepting US vehicle safety standards.

“They’re taking our cars,” Mr Trump told CNBC in a phone interview on Aug 5.

“They’re taking the very beautiful Ford F-150, which does very well. And I’m sure we’ll do very well there, and other things that do very well here will also do well there.”

Japanese firms sell millions of cars in the United States every year, but American vehicles are rare in Japan. Ford exited the market almost a decade ago.

American cars are often too big for local roads – the F-150 is 2.4m wide with mirrors – and usually the steering wheel is on the wrong side.

Tokyo and Washington, meanwhile, appear at odds over key details of the trade agreement, in particular when the announced lowering of levies on imports of Japanese cars will take place.

They now stand at 27.5 per cent – a pre-existing 2.5 per cent plus another 25 per cent added by Mr Trump – and are meant to fall to 15 per cent.

Also unclear is whether other levies on Japan will be capped at 15 per cent, or if this would come on top of existing ones.

A US executive order released last week indicated that the 15 per cent upper limit will be applied only to the European Union, and not for Japan.

Japan’s tariffs envoy Ryosei Akazawa left on Aug 5 for his ninth visit to Washington.

“One purpose of my visit is to prompt the issuance of the president’s executive order regarding tariffs on autos and auto parts as early as possible,” Mr Akazawa said before leaving.

“I have confirmed with the United States that there are no discrepancies (regarding the reciprocal tariff rates), but keeping in mind the new duties will be implemented on Thursday, I would like to provide a reminder for a thorough response beforehand,” local media quoted him as saying.

Further confusion comes from Mr Trump’s assertion that Japan will invest US$550 billion (S$708 billion) into the United States, which will retain 90 per cent of the profits.

“That’s like a signing bonus that a baseball player would get,” Mr Trump told CNBC. “That’s our money. It’s our money to invest as we like.”

But the Japanese side has said that this will consist mostly of loans and loan guarantees. AFP