The USA and Japan sign new tariff on imports

The USA and Japan replaced Section 232 with import tariff quotas.

The United States and Japan have reached an agreement on steel import tariffs that will come into effect on April 1, replacing the Section 232 tariffs with a quota system.

Section 232 tariffs include steel and aluminum, while the deal only covers steel. The agreement allows duty-free imports of Japanese steel with a quota of approximately 1.25 million tons. To qualify for the quota agreement, steel products must be melted and cast in Japan.

Steel products removed from the 232nd Division tariffs in the last two years will not be added to the quota this time. In addition, Japan has committed to take concrete steps to tackle the global excess steel capacity.