Japan Trade Minister, USTR Reaffirm Tariff Cap Arrangement

Washington, Sept. 4 (Jiji Press)–Japanese trade minister Ryosei Akazawa and U.S. Trade Representative Jamieson Greer reaffirmed Friday the continuation of a special arrangement in which additional U.S. tariffs exceeding a level set under a bilateral agreement reached last year will not be imposed on goods from Japan. The confirmation at their meeting in Washington came at a time when the U.S. government is preparing to introduce a new tariff, targeting overproduction, under Section 301 of the U.S. Trade Act of 1974. The special arrangement caps the combined rate of Washington’s so-called reciprocal tariffs and existing levies at 15 pct for Japanese products. “Last year’s agreement remains unchanged, and the two sides confirmed once again that they will continue working on its implementation,” Akazawa told a press conference after the meeting. In July this year, the United States imposed tariffs of 10 pct or 12.5 pct on 60 economies, including Japan and China, alleging that their governments have not taken sufficient measures against goods made with forced labor. Washington is conducting Section 301 investigations into Japan and 15 other economies regarding overproduction. It is believed to be mulling a 7.5 pct additional tariff on China, and Japan may also be subject to fresh levies. Akazawa met with U.S. Commerce Secretary Howard Lutnick on Thursday to discuss progress in the implementation of Japan’s pledged investments and loans of up to 550 billion dollars in the United States. “Amid the growing presence of the artificial intelligence and semiconductor industries, the weight of (the sectors) is becoming very large when considering investment in the United States,” Akazawa said at the press conference. END [Copyright The Jiji Press, Ltd.]