South China Morning Post
Advertisement
Advertisement
US-ally trade wars
Get more with myNEWS
A personalised news feed of stories that matter to you
Learn more
A worker checks the coils at a steel collection facility in Tokyo in August 2009. Photo: Reuters
AsiaEast Asia

US and Japan reach deal over Trump-era steel tariffs

  • The Biden administration agreed to grant relief from the extra duties to a certain amount of imports, but will not lift them altogether
  • The move comes as the US seeks to mend ties damaged under the previous president and to ‘fight against China’s unfair trade practices’
US-ally trade wars
Kyodo
Kyodo
Why you can trust SCMP
The United States said Monday it has agreed with Japan to resolve a trade irritant over steel tariffs imposed during the previous administration under Donald Trump, granting relief from the extra duties to a certain amount of imports.
Although Japan was seeking the removal of the tariffs, which have been in place since 2018, the administration of President Joe Biden has only agreed to an introduction of a tariff-rate quota in an apparent effort to protect the American steel industry.

Under a deal to take effect on April 1, up to an annual 1.25 million tonnes of steel – the average amount of Japanese steel imported into the United States in 2018 and 2019 – will be allowed to enter the country duty-free.

02:17

Trump’s protectionist campaign promise: trade tariffs on steel and aluminium imports approved

Trump’s protectionist campaign promise: trade tariffs on steel and aluminium imports approved

The move comes as the Biden administration is working to rebuild alliances that it believes have been undermined by Trump’s unilateralist foreign and trade policy, under which imports from trade partners such as Japan and the European Union were slapped with additional duties of 25 per cent on steel and 10 per cent on aluminium.

The latest deal will “help us rebuild relationships with our allies around the world as we work to fight against China’s unfair trade practices and create a more competitive global economy for America’s families, businesses and workers,” US Commerce Secretary Gina Raimondo said in a statement.

The agreement did not cover aluminium tariffs, Biden administration officials said.

Japan eyes tighter curbs to counter cyberattacks in move aimed at China

The two countries have been seeking to resolve the tariff issue after Japan’s trade and industry minister Koichi Hagiuda and Raimondo agreed on the launch of negotiations in November.
In October, the Biden administration reached an agreement with the EU to end the Trump-era tariff rift, with the US side allowing a certain quantity of European steel and aluminium to enter duty-free and the EU suspending retaliatory tariffs on US products.
Post