Japan applies to the United States for exemption from tariffs on its steel and aluminum products

As the current exception measures against Japan are about to expire, the Japanese government will start negotiations to avoid adverse effects on Japanese companies. Japan believes that some products are difficult to purchase substitutes in the United States, and excluding Japanese products from the applicable objects is also beneficial to the United States, and will seek understanding from the United States.

On February 12, the Japanese government applied to the US government to exclude Japanese products from the applicable objects in response to US President Trump’s order to impose a 25% tariff on steel and aluminum products from March. As the current exception measures against Japan are about to expire, the Japanese government will start negotiations to avoid adverse effects on Japanese companies. Japan believes that some products are difficult to purchase substitutes in the United States, and excluding Japanese products from the applicable objects is also beneficial to the United States, and will seek understanding from the United States.

At a press conference on the 12th, Japanese Minister of Economy, Trade and Industry Yoshiharu Muto said that Japan had applied to exclude Japanese products from the applicable objects on February 11 local time in the United States (12th Japan time). On the 12th, Japanese Prime Minister Shigeru Ishiba said regarding the US tariffs on steel and aluminum products: “We will carefully investigate the impact of this measure on Japan, and at the same time promote the work of excluding Japanese products from the applicable objects.”

According to the executive order signed by Trump on February 10 local time, the tariff increase measures will be applied from March 12.

Trump launched the tariff increase measures on steel and aluminum products in March 2018 during his first term. After June of the same year, for steel products that could not be purchased as substitutes in the United States, applications submitted by various companies began to be accepted, and related products were exempted from tariffs. In April 2022, under the Biden administration, the United States also introduced an exception measure for Japan to exempt tariffs when the annual import volume was less than 1.25 million tons.

Due to the executive order issued by Trump this time, the two exceptions previously enjoyed by Japanese companies will become invalid.