TOKYO -- Washington waived additional tariffs on 78% of Japanese steel and aluminum imports in May and on 64% of such imports in June, Nikkei has learned, as the hollowing out of U.S. manufacturing continues.
U.S manufacturers have struggled to turn out sufficient quantities of high-performance steel and aluminum for auto production, which manufacturers have long relied on Japan for. President Donald Trump's aggressive effort to protect U.S. steel and aluminum producers has had unintended consequences.
Washington enacted the new import duties in March 2018, announcing additional tariffs of 25% on Japanese steel and 10% on aluminum. At the time, there were concerns in Japan about the effect on exporters, but an analysis in May and June by Japan's Ministry of Economy, Trade and Industry found that the duties were waived for the majority of these materials.
Washington has indicated that it will not apply the duties to products that are difficult to find U.S. substitutes for, even if those products are subject to additional tariffs. The government considers requests for exemption if a U.S. automaker or trading company, for example, requires Japanese materials.
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