Japan, EU eliminating most tariffs in trade deal

The European Union and Japan signed an agreement on Tuesday that will lift close to 100 percent of tariffs on products exchanged between the two.

The Associated Press reported that leaders from Japan and the EU hailed the deal as a significant step toward installing free trade practices, standing in stark contrast to President Trump’s decision to implement steep tariffs against U.S. allies and China.

{mosads}Leaders from the EU and Japan struck a deal on key aspects of the agreement late last year, the AP reported. The new policies won’t go into effect immediately, as they require legislative approval.

The deal eliminates about 99 percent of tariffs on Japanese goods entering the EU and cuts roughly 94 percent of tariffs on European exports to Japan. The latter number will eventually climb to closer to 99 percent, the AP reported.

“The EU and Japan showed an undeterred determination to lead the world as flag-bearers for free trade,” Japanese Prime Minister Shinzo Abe said.

EU leaders said member countries will be able to buy Japanese beef and fruit more easily and that European exports of chemicals, clothing, cheeses and beer will increase, the AP reported.

While the two U.S. allies reached a deal of their own to open up trade, the Trump administration has repeatedly doubled down on its decision to hit the EU, Mexico, Canada and China with steep tariffs. Each nation has responded with retaliatory measures, escalating fears of a global trade war.

Trump has taken a hard-line stance against the EU, in particular. Over the weekend, he told CBS’s Jeff Glor that he considers the EU “a foe.”

“I think we have a lot of foes. I think the European Union is a foe, what they do to us in trade. Now you wouldn’t think of the European Union, but they’re a foe,” Trump said from his golf course in Scotland.