Tool steels are used in all manufacturing industries such as automotive, electronics, consumer goods and packaging.

Japan has been investing in Indonesia for decades, particularly in the automotive, electronic goods, energy, and mining sectors.

Traditionally Indonesia has been regarded as a major market of Japanese automotive and electronic goods.

But after the deal, its largest business will be 1,500 retail stores that sell tires and other automotive goods and services.

Japanese automotive goods accounted for more than 55 percent of America's $66 billion trade deficit with Japan last year.

The agency works in various sectors, e.g. healthcare, finance, IT, telecommunications, automotive and consumer goods.

Tariffs on many other industries like automotive goods and goods were also eliminated.

"Sears isn't our only rival here, although it's important in automotive goods and electronics," Mr. Lawhorne said.

Meanwhile, imports climbed 2.4 percent, the bulk of it because of a higher bill for foreign oil and for automotive goods.

Exports of capital equipment fell $1.2 billion while industrial supplies and materials and automotive goods each fell $600 million.