Japan May Retaliate for Tough U.S. Tariffs

Japan will slap a 30% tariff on U.S. steel products if Washington does not remove its steel import safeguards by the end of the month, a report said Saturday.

The government will formally announce the planned penalties next week, Kyodo News reported. They also include a 5% special tax on U.S. leather goods and clothes, the agency said.

The steps would be in retaliation for 8% to 30% tariffs the United States imposed on certain kinds of imported steel through March 2005.

The U.S. tariffs were designed to give the battered American steel industry time to regroup and consolidate, but Washington’s trading partners argued they were illegal.

Japan and other countries won a ruling this month from the World Trade Organization that the tariffs violated international fair-trade regulations, clearing the way for the retaliatory steps.

Kyodo News reported that Tokyo’s penalties against the U.S. would amount to $98 million a year, roughly equal to the financial damages suffered by Japanese steel producers because of the U.S. measures.

Japan’s trade ministry could not be reached for comment.

Norway announced Friday it would give the United States until Dec. 6 to lift tariffs on foreign steel or face a 30% penalty duty on American products.

The European Union has threatened to impose retaliatory sanctions of up to $2.2 billion by introducing 100% duties on some American imports, effectively pricing those goods out of the European market.