Japan Backs Away From US Steel Tariffs

by Mary Swire, Tax-News.com, Hong Kong

14 June 2002

Although the plan for exemptions from US 'anti-dumping' steel tariffs being developed by the US Commerce Department has underwhelmed European steel producers, it has been enough to cause Japan to call a temporary halt to plans to impose retaliatory tariffs against United States steel products.

Japan had planned to impose 100% tariffs on US$4.88 million worth of US steel and steel products from June 18, and then, if the World Trade Organisation rules against the US, to go ahead with a larger plan for retaliatory tariffs amounting to US$123.43m.

Yesterday, however, Japanese Trade Minister Takeo Hiranuma said after telephone talks with US Trade Representative Robert Zoellick that Japan would hold off for now and pursue further talks. Mr Hiranuma said Mr Zoellick had told him Washington was carefully considering exemptions from US tariffs and that it would announce them in due course. "We got the impression that the United States was being constructive and taking into account our interests," he said.

Washington's politically-motivated tariffs have triggered angry reactions and plans for retaliatory tariffs from many countries, including the EU, Russia, China, Australia, South Africa, and Japan. Not that the trade with Japan is a big deal for either country: Japan's steel imports from the US, including cold-rolled steel sheets and galvanized sheets, and special steel products such as stainless steel, amount to only about 8,000 tons.

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