US, Japan agree to trade deal at G-7 summit, as Trump says allies 'respect' China tariff war

In an unexpected announcement at the Group of 7 summits, President Trump and Prime Minister Shinzo Abe said they have agreed in principle to a trade deal following months of negotiations.
Trump said that the United States and Japan planned to sign the agreement around the same time as the United Nations General Assembly in New York this September. The deal will focus on "agriculture, industrial tarries and digital trade," per U.S. Trade Rep Lighthizer.
“We’ve agreed to every point," Trump said, adding that they'll be preparing the deal to sign at a "formal ceremony.”


PHOTO:Japanese Prime Minister Shinzo Abe and President Donald Trump shake hands during a news conference at the G-7 summit in Biarritz, France, Aug. 25, 2019.
PHOTO: Japanese Prime Minister Shinzo Abe and President Donald Trump shake hands during a news conference at the G-7 summit in Biarritz, France, Aug. 25, 2019.more +

Abe added through a translator that the countries "still have some remaining work that has to be done at the working level."
The surprise announcement was the latest in several developments Sunday at the G-7 summit in here in France.
Iran's Foreign Minister Zarif reportedly arrived in France for an unplanned visit. Trump, however, would not confirm the reports.
"No comment," he told reported when asked.
The White House would also not confirm reports that there were no plans form members from the U.S. delegation to meet with their Iranian counterparts while they are in town.
"The president has said before that if Iran wants to sit down and negotiate with us without preconditions to those negotiations," Treasury Sec. Mnuchin said during a gaggle with reporters after a Sunday show appearance in Saint Jean de Luz. "I'm not going to make any more comments about who's here and who's not here, and what conversations may or may not be made."
Zarif met with President Macron on Friday in Paris ahead of the summit.
The deal between the U.S. and Japan would include large purchases of American agricultural products by Japan. It would allow the U.S. to compete with countries that were part of the Trans-Pacific Partnership, Lighthizer said.
After the U.S. pulled out of the TPP, some countries have stepped in to increase trade with Japan. Lighthizer said this new deal would open up the markets to $7 billion in products.
“It’s very good news for our farmers and ranchers,” he said.
With this new trade deal, Trump will get to leave tomorrow with at least one accomplishment even as he has been at odds with allies throughout the summit.
Among those points of contention is China. Earlier in the day, the president wasn't facing any pressure from the other countries over its trade war with China.
"I think they respect the trade war," Trump said when asked if he was facing pressure from his allies to give up the trade war with China. "So the answer is nobody’s told me that. Nobody would tell me that."
Trump held his first face to face meeting with Boris Johnson as the United Kingdom's new prime minister Sunday morning, over breakfast at the Hotel du Palais in Biarritz, France.


PHOTO: President Donald Trump and Britains Prime Minister Boris Johnson arrive for a bilateral meeting during the G-7 summit on Sunday, Aug. 25, 2019 in Biarritz, France.
President Donald Trump and Britain's Prime Minister Boris Johnson arrive for a bilateral meeting during the G-7 summit on Sunday, Aug. 25, 2019, in Biarritz, France.more +

Over a breakfast of scrambled eggs and sausage, Johnson congratulated Trump on "everything the American economy is achieving," but then cautioned Trump.
"We think that on the whole, the U.K. has profited massively in the last 200 years from free trade and that's what we want to see," Johnson said.
(MORE: President Trump offers a rosy outlook for the G-7 summit: 'Everybody's getting along')
"We don't like tariffs on the whole," Johnson said, echoing the warnings allies have been sending as Trump escalates his tit-for-tat with China.
The president also said he has the right to declare a national emergency to force U.S. businesses to leave China but doesn't have any plans at the moment. He then added that actually, the U.S. and China are getting along "very well" right now.
"I have the right to. If I want, I could declare a national emergency," Trump said. "I think when they steal and take out intellectual property theft -- anywhere from $300 billion to $500 billion a year -- and when we have a total loss of almost a trillion dollars a year, for many years this has been going on. And in many ways, that’s an emergency. I have no plans right now," Trump said.
"Actually we’re getting along very well with China right now. We’re talking. I think they want to make a deal much more than I do, so we’ll see what happens. We are talking to China very seriously."


PHOTO: President Donald Trump participates in a Working Session on the Global Economy, Foreign Policy, and Security Affairs at the G-7 summit in Biarritz, France, on Sunday, Aug. 25, 2019.Andrew Harnik/Pool via REUTERS
President Donald Trump participates in a Working Session on the Global Economy, Foreign Policy, and Security Affairs at the G-7 summit in Biarritz, France, on Sunday, Aug. 25, 2019.more +

He said he has no concerns about the market's reactions to his tariffs on China, and that he's been getting praise and compliments from other leaders about the American economy.
"You people want a recession because maybe that's the way to get Trump out," Trump said. "Maybe that's the way we get him out."
Trump and Johnson have plenty to discuss this morning: the global markets are reeling from the United States' trade wars, the Amazon rain forest is on fire and North Korea is testing rocket launchers. As Johnson tries to navigate the U.K.'s divorce from the EU by Halloween, he's also working on a potential trade deal with the U.S.
(MORE: Ahead of G-7 Summit, Trump again backs Russia being allowed back into the alliance)
Trump said it's a "very big trade deal, bigger than we've ever had with the U.K.," noting the U.K. will no longer have the EU as an "anchor around their ankle."


Jeff J. Mitchell/Pool via Getty Image

The prsident, who criticized the former prime minister's handling of Brexit, sid that he had no advice for Johnson. "He's the right man for the job. I've been saying that for a long time."
Johnson said he's "very excited" about their trade talks. Trump said he hopes they can make a trade deal "very quickly," noting he was "stymied" by Johnson's predecessor.
The two leaders also talked about the potential for Trump to invite Russian President Vladimir Putin to next year's G-7 hosted by the United States.
"It's certainly possible," Trump said. "We'll see."