Reducing the 25% levy on Japanese Steel imports is President Joe Biden’s next move in tackling the rising supply chain crisis and inflation in the U.S.
The deal will allow Japan to export 1.25 million metric tons to the U.S. with zero levies annually; the deal will be canceled immediately if Japan exceeds the said limits. The tariff also requires Japan to meet the “melted and poured” standard to ensure that the imported steel is entirely produced within the nation.
The import limit was set after American steel industry executives feared the tariff cut would make the industry volatile amid the pandemic crisis. Japan announced that it is looking forward to increasing the threshold limit in the future.
The tariffs on aluminium remain unchanged.
Former President Donald Trump imposed heavy tariffs on steel and aluminum imports to prevent China from dumping or skirting the U.S. import tariffs. Trump’s attempt to strengthen national security led to retaliatory tariffs from other nations on American goods as well.
The EU and Britain struck similar deals with the U.S. They have agreed to cut their retaliatory tariffs on Harley Davidson and Kentucky Bourbon imports. Biden is aiming to fix the global supply chain crisis by improving relationships with market-driven democracies. Yet, he left the $350 billion import tariffs on Chinese goods unchanged.
