U.S. President Donald J. Trump on Monday Aug. 26, spoke about the new U.S.-Japanese trade deal during his meeting with Egyptian President Abdel Fattah el-Sissi in Biarritz, France, at the G-7 summit.

The United States and Japan agreed to the historic trade deal at the G-7 summit that is worth over $7 billion.

Sitting with Egyptian President Abdel Fattah el-Sissi, President Trump said the new deal with Japan is a “massive” and “an incredible, incredible deal” that will be a great deal boost to the U.S. agricultural sector, “our farmers, our ranchers, and E-commerce.”

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The president said the E-commerce component is very important and that it is a “tremendous deal” that came at an opportune time when the U.S. is helping farmers. He called U.S. farmers the “great American patriots” and was glad that they clinched a deal with Japan that would ease the challenges faced by the farmers.

U.S. Trade Representative Robert Lightizer tweeted a summary, after making the announcement of the deal.

“It has three parts—agriculture, industrial tariffs, and digital trade,” said Lightizer. He reiterated President Trump’s words that the deal will be “extremely important for our farmers, ranches, and those people who work in the digital space.” The U.S. trade representative stated that White House would provide more details of the deal later.

 

Lightizer highlighted that Japan is the U.S.’s third largest agricultural market, that the Japanese import about $14 billion worth of the U.S. agricultural products. Hence, this deal will open up markets to in excess of “$7 billion of those products” said Lightizer.

President Trump stated that Japanese Prime Minister Shinzo Abe also agreed to buy some of the excess U.S. corn that U.S. farmers have due to the stalled China trade talks.

When asked by reporters if Japan would honor the deal, the president said he is “pretty certain” that Abe is going to make the deal. President Trump stated that Abe is “a friend of mine” and “one of my closest friends.”

President Trump also stated that Washington currently does not impose any tariff tax on Japanese cars, that the United States endured a “tremendous trade deficit” with Japan for decades, and that if the United States were to put tariff tax on Japanese cars, America could get a lot of money back that way.

“We have all the cards,” President Trump said, “but we never played it because we never had a president that understood this and we never had an administration or trade negotiator.”

The president said he expects the billion-dollar deal will be sealed in mid-September when the United Nations General Assembly meets in New York.

Speaking in Japanese, Abe called the deal a “win-win” situation, achieved through “series of intensive negotiations.”