The US has partially removed the 25% tariff imposed by former President Donald Trump on steel imports from Japan.
The US Department of Commerce said in a late Monday evening statement that up to 1.25 million metric tons of steel imported from Japan will be allowed to enter the US duty-free annually, with amounts beyond this threshold subject to a 25% tax.
The new system agreed upon by both countries will take effect on April 1, it added.
Tariffs on aluminum products are not included in the new agreement.
If Japan now and the EU last yr can negotiate the end of huge Trump-era tariffs for exports of steel to the US why is it taking so long for @BorisJohnson & @annietrev to do the same for British steel exports? UK jobs are on the line here… https://t.co/GCRnbg0PRw
— Gareth Thomas MP (@gareththomasMP) February 8, 2022
The agreement will help ensure the long-term sustainability of the steel industry, it said.
In 2018, the US decided to impose tariffs of 25% and 10% on imported steel and aluminum, respectively, on “national security” grounds.
According to Commerce Department data, the US imported about 1.7 million metric tons of steel from Japan in 2017 before the tariffs were introduced.
The country’s steel imports from Japan had dropped to 1.1 million tons until 2019.
The two countries will continue discussions on the levies on aluminum imports, according to the sources.
The Trump administration also imposed additional tariffs on steel and aluminum from the European Union, but the EU took retaliatory measures against U.S. imports.
Read more: US suspends tariffs on UK, India, European nations in digital tax dispute
The two sides agreed last October to introduce a tariff-free import quota for a certain amount per year. U.S. tariffs would apply to annual volumes above 3.3 million tons of steel from the EU, Reuters reported citing sources familiar with the deal.
Anadolu with additional input by GVS News Desk