The USA and Japanese Commerce Ministers negotiate steel, aluminum tariffs

The Japanese and US Commerce Ministers discussed the abolition of high tariffs on steel and aluminum imported by the US from Japan.

Visiting Tokyo, US Trade Minister Gina Raimondo and Japanese Trade Minister Hagiuda Koiçi discussed bilateral trade relations during their meeting.

The two discussed the removal of high tariffs on steel and aluminum imports from Japan, imposed by previous US President Donald Trump.

At the meeting, it was noted that easing the global semiconductor chip supply shortage and cooperation opportunities in the field of international logistics were also discussed.

"The United States and Japan will seek to resolve bilateral concerns in this field (steel and aluminum)," the US Trade Representative's (USTR) statement said. expressions were used.

In line with the "America First" foreign and commercial policies followed by Trump at that time, the USA had decided to impose tariffs of 25 percent and 10 percent, respectively, on imported steel and aluminum since 2018.

Kyodo agency reported that Japan "did not practice reciprocity" during this time and preferred the negotiation path to normalize the situation.

It has been reported that Raimondo, who visited the Asian region for the first time after taking office, will visit Singapore and Malaysia after Japan.

It was noteworthy that the visit took place after a solution was reached at the end of last month in the steel and aluminum customs tax dispute, which has been going on for 3 years, similarly between the European Union (EU) and the USA.

WHAT THE AGREEMENT CONTAINS

The agreement maintains Section 232 tariffs of 25% on steel and 10% on aluminum, while allowing "limited volumes" of EU-produced metals to enter the United States duty-free.

The agreement requires EU steel and aluminum to be produced entirely on the block to qualify for duty-free status. This provision aims to prevent metals from China and non-EU countries from being minimally processed in Europe before being exported to the US.

The deal eliminates Europe's retaliatory tariffs against US products. Raimondo said the deal will reduce the costs of steel consuming US producers.