THE United States will agree not to raise tariffs or introduce curbs to import quotas on Japanese cars when the country’s leaders meet next week, the Tokyo Shimbun newspaper reported yesterday.

The pledge would be part of a joint leaders’ statement on trade that is due to be released following a meeting between U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe next week in New York.

Washington and Tokyo agreed to the core elements of a trade deal last month on the sidelines of a Group of Seven Summit, with Trump and Abe saying they hoped to sign an agreement this month.

As part of the limited trade deal, Tokyo would make concessions on agricultural imports from the United States while Washington would refrain from raising tariffs on Japanese cars as Trump had threatened to do earlier.

The agreement, if finalized, would lessen trade frictions between the two allies at a time when the United States is locked in a trade war with China.

Japan has agreed to phase out tariffs on U.S. wine imports as part of the bilateral trade deal, and it will eliminate the tariffs on U.S. wine within five to seven years after the trade agreement goes into effect, the Nikkei newspaper reported on Sunday without giving its sources.

Japan taxes imported wine at a rate of 15 percent or 125 yen (US$1.16) per liter, whichever is cheaper, according to the Nikkei. The elimination of the tariff could cut the cost of U.S. wine by about 13 percent for wine distributors.

The trade agreement between the U.S. and Japan, which is expected to be signed on the sidelines of the U.N. General Assembly meeting, is also expected to gradually lower tariffs on U.S. beef imports to 9 percent in 2033 from 38.5 percent now.

(SD-Agencies)