1985 Plaza Accord

I asked ChatGpt how long took to reach the 1985 Plaza Accord between Japan and USA, it took over 6 months.  Then I asked if the tarrif agreement would take less time?  here is the chatgpt answer:

Probably not — a Trump-era tariff agreement with Japan would likely take longer than the 1985 Plaza Accord.

Let’s break down why:


1. The Plaza Accord wasn’t a tariff deal

It was a currency realignment pact — a coordinated FX intervention. No tariffs, no quotas, no industrial policies — just agreement to devalue the dollar.

That’s much simpler than a modern trade deal which touches on:

  • Automotive exports/imports

  • Semiconductor supply chains

  • Agricultural access

  • Security alignment (especially with China looming)


? 2. Trump’s style is bilateral, zero-sum, and tactical

  • Trump tends to use tariffs as leverage rather than policy tools.

  • Negotiations under him can be abrupt, unpredictable, and often public.

  • Example: USMCA (NAFTA replacement) took nearly 2 years to finalize.

If a Japan deal involved auto tariffs or semiconductor policies, expect multiple rounds of negotiations, each punctuated by public posturing or threats.


3. Japan plays long ball

  • Japan’s bureaucracy (especially METI and MOFA) likes studied, cautious negotiation.

  • They will resist anything that looks like they’re being pushed around.

  • They also want to preserve the post-TPP architecture, which the U.S. walked away from.


4. Current global context is more complex

Unlike the '80s:

  • The global supply chain is deeply integrated, especially in tech.

  • Japan is caught between the U.S. and China — it can’t afford rash alignment.

  • Geopolitics (Taiwan, semiconductors, military bases) are all on the table.


? Realistic Estimate?

A Trump-Japan tariff agreement in 2025 could take:

  • 6 to 18 months if limited in scope

  • 2+ years if it involves industrial policy, tech, and defense coordination

Especially if it becomes part of a broader “Trump Trade 2.0” global strategy.

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