In November 2021, the U.S. started to pull back on Section 232 tariffs using tariff rate quotas on imported steel and aluminum from the EU. The U.S. and Japan have agreed to a similar strategy on imported steel from Japan to take effect April 1, 2022.
Similar to the EU deal, importers of Japanese steel under Section 232 exclusions will file tariff rate quotas – eliminating the 25% tariff imposed during the Trump Administration. However, these excluded products will count against the quota. The quota will cover 54 product categories at an annual 1.25 million metric ton limit of imported steel.
All products entered under the quota must be certified as melted and poured in Japan. As with previous set quotas, the TRQ will be administered quarterly. Up to 4% of unused quota from the first quarter can roll over to the third quarter and up to 4% of unused quota from the second quarter can roll over to the fourth quarter. Unused quota from the third quarter, up to 4%, again, can roll over to the first quarter of the following year.
If you have questions about these quotas or the exclusions, please reach out Mohawk Global Trade Advisors.