In a deal announced at the G7 Summit between the US and Japan, a deal that has been agreed to with a handshake and in principle, it is clear that the relationship between Mr Abe and Mr Trump is strong. This deal benefits both parties and drives home the fact that the US got what it was looking for, the reduction in tariffs in beef, pork and other farm products while Japan, for its part, did have a smaller win. The win-win deal makes Mr Trump look like a star and with the announcement at G7, allowed him to take some of the limelight. In a gesture of support from Prime Minister Abe, Japan will purchase excess volumes of corn from the US.
This corn was earmarked for China and was then rejected by Beijing. As expected, Japan gave ground on agriculture and had to give ground on autos. Some officials on Tokyo have stated that Japan should not give up ground or leverage over US farmers, without concessions. The “very very large order of corn,” according to President Trump was a welcome sign that Japan is surely partnering with the US in a future relationship. Mr Abe, “I am sure there will be very positive impact on both Japan and American economies.”