Japan agreed with the United States on Wednesday to enter negotiations toward a bilateral trade agreement, setting aside higher U.S. tariffs on Japanese auto exports that Tokyo feared would have a devastating impact on the economy.
The start of bilateral negotiations to lower tariffs signals a major concession by Japan to U.S. President Donald Trump, with Prime Minister Shinzo Abe having preferred a multilateral approach to addressing trade issues.
The agreement was reached in a meeting between Abe and Trump, who has expressed vexation over the huge U.S. trade deficit with Japan and has called for what he describes as more "reciprocal" trade.