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AEM Welcomes U.S. Japan Steel Agreement, Encourages Full Tariff Removal

Wed February 09, 2022 - National Edition

Association of Equipment Manufacturers (AEM) senior vice president of government and industry affairs Kip Eideberg issued the following statement in response to the announcement of a U.S. – Japan steel agreement:

"AEM welcomes this announcement, but the Biden administration must expeditiously remove the remaining damaging tariffs put in place by President Trump. U.S. manufacturers are still subjected to tariff rate quotas [TRQs] and 25 percent tariffs on steel and aluminum, while our foreign competitors continue to access the global market at better rates. We strongly encourage the Biden administration to remove all remaining Section 232 steel and aluminum tariffs on our trading partners and allies."

The administration announced it has reached a new steel tariff agreement with Japan. Starting April 1, the United States will accept up to 1.25 million metric tons of Japanese steel duty-free each year, then apply a 25 percent tariff on imports above that threshold. The tariff rate quota only applies to imports of steel melted and poured in Japan and excludes aluminum. The administration indicated negotiations on easing U.S. tariffs on Japanese aluminum are ongoing.

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