U.S. Reaches Deal With Japan to Cut Steel Tariffs
In a joint statement, the U.S. and Japan said the deal will take effect on 1 April. The agreement comes after Washington struck a similar deal for European Union steelmakers in 2021.
According to the Reuters news service, the deal requires Japan to “take ‘concrete steps’ to fight global excess steel manufacturing capacity, largely centered in China.”
The agreement calls for quota volumes of 1.25 million metric tons, based on 2018–2019 average shipment levels. The deal also includes a melted and poured requirement and counting exclusions against the quota volume.
"This is a step towards a solution... but we will continue to strongly urge the United States to fully eliminate the tariff in a manner consistent with WTO rules," Japanese industry minister, Koichi Hagiuda, said.
U.S. Commerce Secretary Gina Raimondo said the deal "will strengthen America's steel industry and ensure its workforce stays competitive, while also providing more access to cheaper steel and addressing a major irritant between the United States and Japan, one of our most important allies."
Steel Manufacturers Association president Philip Bell said, "Overall this is a strong deal for American steelmakers. It shows that we should not take a one-size-fits-all approach when it comes to our jobs, environment and economic growth.”