US Ends Steel Dispute with EU, Begins Tariff Reduction Talks with Japan

Gina Raimondo, U.S. Secretary of Commerce (right), and Koichi Hagiuda, Japanese Minister of Economy, Trade and Industry [Image source=Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] The United States and Japan officially began negotiations on the 15th to ease steel tariffs.

According to the Nihon Keizai Shimbun and others on the 15th, U.S. Secretary of Commerce Gina Raimondo, who is visiting Japan, met with Japanese Minister of Economy, Trade and Industry Koichi Hagiuda on the same day to discuss additional tariffs imposed by the U.S. on Japanese steel and aluminum.

In his opening remarks at the meeting, Minister Hagiuda said, "This is an important opportunity to discuss the future mode of U.S.-Japan cooperation," adding, "We want to further expand the cooperative relationship between the two countries." In response, Secretary Raimondo said, "The U.S. engagement with Japan is unwavering," and "We want to advance the cooperative relationship between the two countries."

Minister Hagiuda is also scheduled to discuss tariff issues soon with Katherine Tai, U.S. Trade Representative (USTR).

Japanese media speculate that the two countries will soon conclude discussions on tariff issues to counter China in the economic sector. The Nikkei reported, "There is a possibility that the U.S. will partially exempt tariffs on Japan."

The U.S. appears to be seeking to form a united front against China by resolving steel and aluminum tariff disputes with the European Union (EU) and subsequently pursuing consultations with allies such as Japan.

At the end of last month, the U.S. and the EU announced the resolution of their steel and aluminum tariff dispute. The U.S. agreed to partially exempt tariffs on EU steel and aluminum, and the EU agreed to cancel retaliatory tariffs on U.S. products.

Both sides also announced plans to "develop a joint methodology to assess (carbon) emissions associated with steel and aluminum for trade purposes." Analysts suggest this will become a new means to exclude China, which struggles to meet environmental standards.

In March 2018, during the Donald Trump administration, the U.S. applied Section 232 of the Trade Expansion Act, citing increased imports as a threat to national security, imposing additional tariffs of 25% on steel and 10% on aluminum. These tariffs applied not only to Japan but also to the EU and China, leading to trade disputes.

South Korea accepted a quota limiting steel exports to 70% of the average volume over the previous three years in exchange for exemption from the 25% tariff. As a result, South Korean steel exports to the U.S. shrank from an annual average of 3.83 million tons during 2015?2017 to around 2 million tons.

Representative Tai is scheduled to visit South Korea on the 18th. The South Korean and U.S. governments are expected to discuss trade issues, including steel tariffs.

This content was produced with the assistance of AI translation services.