The U.S. Department of Commerce announced a trade agreement with Japan on Monday to reduce China’s unfair trade practices.
The agreement will allow about 1.25 million tonnes of Japanese steel imports to be exempt from tariffs annually.
According to U.S. officials, the deal also requires Japan to take “concrete steps” to deal with global steel oversupply, primarily concentrated in China.
According to the joint statement from the U.S. and Japan, “appropriate domestic measures within six months to create a more market-oriented steel sector.” Like the steel and aluminum accord signed between the U.S. and the E.U. in October of last year, imported steel from Japan must be completely “cast” in Japan.
In a statement, U.S. Commerce Secretary Raimondo declared, “Today’s announcement builds on our agreement with the European Union as we combat unfair Chinese practices and create a better place for American families, companies, and workers.” A competitive global economy will further help rebuild our relationships with allies worldwide. ”
According to ambassador Kathrine Tai, “This agreement, along with the settlement reached last year with the European Union, will help us work with Japan to combat China’s anti-competitive, non-market trade practices in steel, while also helping deliver on President Biden’s ambitious global climate agenda.”
The Trump administration placed a 25% tax on imported steel from dozens of nations and a 10% duty on imported aluminum in 2018 for national security reasons. In addition, the U.S. placed steel and aluminum tariffs on China and U.S. allies.
The U.S. Department of Commerce said in a statement announcing the 232 tariff agreement between the U.S. and Japan.
“The deal is another example of President Biden’s focus on strengthening relationships with our vital allies and partners, and working with them to address unfair practices by countries like China together.”