Japan decisive – slapping 100% tariffs on U.S. steel imports
Since
Japan and the U.S. ended in a deadlock over steel tariffs,
Japan is standing its ground with plans to slap 100% retaliatory tariffs on U.S. steel imports. May 17, the deadline
Japan had given for imposing the tariffs was the same day Japanese officials informed the World Trade Organization (WTO) of its firm decision to hit back with the tariffs.
Japan continues to be miffed over U.S. refusal to pay compensation for losses
Japan says its steel industry is suffering due to the Bush administration's 201 tariffs. Admittedly, U.S. steel exports bound for
Japan are minimal at about 20,000 tons, working out to a total of $4.9 million per year, insiders report. Nevertheless, insiders report that
Japan stands to lose close to $123.43 million in the first year of the Section 201 tariffs.
A last minute discussion at the end of last week, between
Japan's Takeo Hiranuma, minister of economy, trade and industry and U.S. Trade Representative Robert Zoellick ended in the U.S. rejecting Japanese demands. U.S. trade officials continue to insist that
Japan and the EU are violating WTO rules by implementing retaliatory tariffs. As a result,
Japan is requesting the WTO create a dispute-settlement panel to rule in this dispute at the earliest possible date.
Hiranuma is planning to make a last ditch effort at negotiations with Zoellick through June 17. Though, sources say a positive response from the U.S. is not likely. In that case, on June 18,
Japan will hit U.S. steel imports with $4.88 million in duties, effective immediately.
Sources report that an additional $118.55 million duties are set to be imposed at a later date on a wide range of U.S. imports. Insiders indicate that this action will be taken if the WTO rules against the U.S. and if the Bush administration still refuses to withdraw the tariffs.
Japan's aim is to cover all of its losses.