The U.S. government has decided to replace punitive tariffs with a quota on Japanese steel imports, U.S. officials said Monday, a move that is part of Washington’s efforts to resolve trade disputes over the United States. in the White House.
“This agreement will strengthen the US steel industry and guarantee that its workforce will remain competitive, while at the same time offering better access to less expensive steel,” said US Commerce Secretary Gina Raimondo.
He also said that he would help resolve the “major friction” in relations with Japan, one of Washington “one of the most important” allies.
Japan was among several countries seen in June 2018 imposing additional punitive tariffs of 25% on steel and 10% on aluminum by the Donald Trump administration.
The Republican president had justified his decision at the time, citing the need to defend the US steel industry, which had been “decimated by decades of unfair trade practices”. He relied on a 1962 law, the famous Article 232 of the Trade Expansion Act, which allows imports to be restricted if they “endanger” American “national security.”
The punitive tariffs angered Washington’s allies, who reacted by announcing retaliatory measures.
The agreement, announced yesterday and expected to take effect on April 1, provides for an annual quota of 1.25 million metric tons of Japanese steel, which will be imported without additional customs duties, a US Commerce Department official explained.
However, in addition to the quota, additional duties of 25% will be automatically imposed.
This quota is significant, as it exceeds the 1.1 million tons that Japan exported to the US in 2019, according to data from the US Department of Commerce. Before the additional duties were imposed, Japan exported a much larger quantity, 1.8 million tonnes.
The bilateral agreement concerns only steel, not aluminum, the US official clarified.
Tokyo today expressed “regret” that the United States “did not take any action to resolve” the issue of punitive customs duties on aluminum. Japanese Foreign Minister Yoshimasa Hayashi praised Washington’s “step forward”, but added that Tokyo would continue to press the United States for a “comprehensive solution.”
SOURCE: AMPE
Source: Capital
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