Washington and Tokyo are in the final stage of talks to exempt a portion of U.S. imports of steel from Japan from extra tariffs imposed in 2018 by U.S. President Donald Trump, sources close to the matter said.
The sources said that the two countries are discussing the establishment of a duty-free import quota, but its size and some other details have not been finalized yet.
The United States had levied additional duties of 25% on steel and 10% on aluminium imports since 2018 when the Trump administration cited potential national security risks under its “America First” foreign and trade policy.
The two countries will continue discussions on the levies on aluminum imports, according to the sources.
Japan has been asking for exemptions from the Trump-era tariffs. Last November, trade minister Koichi Hagiuda and U.S. Commerce Secretary Gina Raimondo agreed to launch negotiations.
The United States is particularly concerned about the impact on its economy of what it says is excessive steel production by China.