The US and Japan have agreed to lift tariffs. On about 1.25 million metric tonnes of Japanese steel imports per year imposed by Trump.
Under the terms of the agreement, Japan promises to assist in the reduction of surplus steel supplies. The agreement terms drive down costs.
The deal aims to end “unfair practices” in the world’s steel industry, which is controlled by China.
The Biden administration has already reached an agreement with the EU, but tariffs on UK goods remain in effect.
The agreement with Japan, which goes into effect on April 1, “will further assist us in rebuilding relationships with our friends throughout the world as we seek to combat China’s unfair trade practices,” according to US Commerce Secretary Gina Raimondo.
During Donald Trump’s administration, tariffs hit several countries. Alleging cheap metal imports as a national security danger.
The U.S. on Japan Steel Imports
Under the new agreement, the United States will no longer apply a 25% tariff on Japanese steel imports. However, excluding aluminum, up to a 1.25 million metric tonne annual threshold.
Meanwhile, Tokyo has stated something on the steel market. It said that it will take steps within the next six months to encourage a more equitable steel market, as seen by the US and Japan.
These include a levy to offset subsidies received by an exporter and a tax on items perceived to be priced below market value. Investment analysts were cautiously optimistic when they heard the news.
According to Vishnu Varathan, head of economics and strategy at Mizuho Bank, “this easing of Trump-era tariffs on steel is consistent with anticipation that the Biden administration will align its geopolitical and trade ties.”
“However, even the early tariffs did not have an impact on China. As a result, this agreement may be more about repairing relationships in the context of a larger trading game “.
A deal between Brussels and Washington went into effect on January 1st. Allowing tariff-free shipments of EU steel and aluminum to the United States.
The UK, on the other hand, has failed to negotiate an agreement. Agreement to reduce tariffs on steel and aluminum exports imposed by Trump.
The matter will bring to the notice “when the time is right,” according to US-Japan Tariffs Trade Representative Katherine Tai.