Japanese steel products now now are being imported into the United State without tariffs imposed by the Trump-era authorization under Section 232 of the Trade Expansion Act of 1962, according to a recent news release.
The commodity is protected from the 25% tariff on steel and 10% on aluminum so long as the amount imported remains below agreed levels, according to a joint statement issued by the U.S. Department of Commerce and the U.S. Trade Representative.
The Section 232 tariff exemption deal with Japan is aimed at China, Commerce Secretary Gina Raimondo said in the joint statement.
U.S. Trade Representative Katherine C. Tai
| twitter.com/ambassadortai
"Today's announcement builds on the deal we struck with the EU [last fall] and will further 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," Raimondo said. "I'd like to sincerely thank our counterpart at Japan's Minister of Economy, Trade and Industry Hagiuda Koichi, for his determination and resolve, as well as Ambassador Rahm Emanuel for his partnership in this effort."
In her portion of the joint statement, U.S. Trade Representative Katherine C. Tai also referred to last year's agreement with the EU and the newest deal with Japan to "combat China’s anti-competitive, non-market trade actions in the steel sector." She also said that the deals will help achieve President Joe Biden's "ambitious global climate agenda."
"Importantly, this agreement represents an important example of our worker-centered trade policy in action," Tai said. "It will protect a vital American industry, our workers, and their families as we work to deliver trade policies that can unlock broad-based economic prosperity and growth."
The Monday, Feb. 7 joint statement was used to announce the new Section 232 tariff exemption agreement with Japan, intended to allow sustainable volumes of Japanese steel to enter the U.S. market without applying under the existing 232 tariff agreement.
The deal also aims at ensuring long-term viability of the nation's steel industry, the American steel industry and protect domestic-based jobs, according to the statement.
"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," the officials said.
Section 232 authorizes the president to impose tariffs on products identified as a threat to national security.
In March 2018, then-President Donald Trump used Section 232 to impose tariffs on aluminum and steel imports. The tariffs are still in place on imports from Europe and other countries. Canada and Mexico remain exempt from those tariffs.
