On the west coast, an intense anti-Japanese atmosphere developed. U.S. President Theodore Roosevelt did not want to anger Japan by passing laws banning Japanese immigration to the United States, as had happened with Chinese immigration. Instead, there was an informal “gentlemen`s agreement” (1907-1908) between the United States and Japan, in which Japan ensured that there was little or no movement in the United States. The agreements were concluded by U.S. Secretary of State Elihu Root and Japanese Secretary of State Tadasu Hayashi. The agreement banned the emigration of Japanese workers to the United States and repealed the order of segregation of the San Francisco School Board in California, which had humiliated and angered the Japanese. The agreement did not apply to the territory of Hawaii, which was then treated as separate and separate from the United States. The agreements remained in effect until 1924, when Congress banned all immigration from Japan.
 Similar anti-Japanese sentiments in Canada led simultaneously to Hayashi Lemieux`s agreement, also known as the Gentlemen`s Agreement of 1908, with substantially similar clauses and effects.  Gentlemen`s agreements, because they are informal and often not written, do not enjoy the same legal and regulatory protection as a formal contract and are therefore more difficult to implement. Similarly, in 1907 Morgan again collaborated with Roosevelt to create a gentlemen`s agreement that would allow US Steel to acquire its greatest competitor, Tennessee Coal and Iron, in a tacit and unspoken rule that violated the Sherman Act. In 1890, the U.S. government imposed a ban on gentlemen`s agreements in trade and trade relations between nations. A gentlemen`s agreement is an informal agreement or transaction, often unwritten, which is supported only by the integrity of the other party to effectively comply with its terms. Such an agreement is generally informal, oral and not legally binding. Despite their informal nature, the violation of a gentlemen`s agreement could have negative consequences on trade relations if a party decides not to keep its promise.
A gentlemen`s agreement can also be described as a “gentleman`s agreement” and can be completed by a handshake or not. The end result may, in many cases, be higher cost or lower quality products for consumers. Worse, a gentlemen`s agreement can be used as a means of promoting discriminatory practices, as in a “network of old boys.” Gentlemen`s agreements have often been concluded in international trade and international relations, as well as in most industries.