Japanese Trade Minister Seeks for U.S. Tariff Exemption

Japanese Trade Minister Hiroshige Seko says the possibility for exemption on U.S. tariffs on some steel and aluminum products from Japan but it is not quickly replaceable.

During the news conference, Hiroshige said “I think there is a high chance that Japanese steel and aluminum products would be exempted from the new tariffs on a per-item basis, as they contribute greatly to U.S. industries and many of them have little substitute,”

The U.S. President Donald Trump has imposed tariffs of 25 percent on steel and 10 percent on Aluminum except on Canada and Mexico and other nations could also be exempted in consideration of the “no exception” line.

This policy has allowed importers to look for exemptions on specific products.
Japanese steelmakers, as well as, other U.S. partners are motivated to apply for exemptions, Seko added.

Japan is aiming for a country exemption individually. They will persist to request for exemption to the U.S. Trade Representative, according to Seko. Goods worth two million steels are exported from Japan to the United States a year, representing about five percent of total steel exports. About 2.1 million tonnes of rolled and extruded aluminum area produced yearly. Around 27,000 tonnes are exported to the U.S. from total exports of 243,000 tonnes. Although, they are more concerned that tariffs may prompt retaliation and initiate a trade war.

International automakers and automobile suppliers are urging the Trump administration and U.S. Congress to exempt the European Union and other allies from the imposition of tariffs, particularly on steel and aluminum to be implemented on Friday, according to the authorities from the industry.