U.S. President Donald Trump said yesterday he may announce something on a U.S.-Japan trade agreement in August, giving Prime Minister Shinzo Abe breathing space on the contentious issue as his ruling party heads into elections planned for July. Trump has threatened to raise tariffs on the approximately US$50 billion worth of Japanese cars and auto parts exported to the United States annually, and is seeking greater access to the world’s third-largest economy for American farmers. Before formal discussions with Abe in Tokyo yesterday, Trump told reporters that “a lot of very positive things are happening on trade.” “Trade-wise, I think we will be announcing some things probably in August that will be very good for both countries,” Trump said. “We have to do a little catching up with Japan because they’ve been doing much more business with us. We’d like to do a little more business in the reverse.” Japan is seeking to stay in Trump’s good graces in order to avoid costly tariffs. Trump yesterday also expressed support for Abe playing a role in facilitating talks with Iran as tensions rise in the Middle East. “I am happy to be able to show to the nation and the world that ties between Japan and the United States are strong,” Abe said ahead of his meeting with Trump. On trade, the two countries still have differences and agreed “to work to get a deal done quickly,” Japan Economy Minister Toshimitsu Motegi said Saturday after almost three hours of discussions with U.S. Trade Representative Robert Lighthizer in Tokyo. They didn’t discuss contentious issues such as U.S. threats to restrict Japanese car exports and applying a currency clause, Motegi said. Japan will hold elections for the upper house in July, and many have predicted the government will take the opportunity to dissolve the more powerful lower house at the same time. It will be politically difficult for Abe to concede anything, particularly on agriculture, ahead of the vote. The two sides didn’t discuss contentious issues such as U.S. threats to restrict Japanese car exports and applying a currency clause, Motegi said. (SD-Agencies) | 