Adjusting Imports of Steel Into the United States

This proclamation establishes a tariff-rate quota on steel imports from Japan, replacing the 25% tariff with a quota of 1.25 million metric tons for steel melted and poured in Japan. The agreement maintains the 25% tariff on Japanese steel exceeding the quota and on steel from other countries, while adding Japan to the list of countries with modified treatment. The changes take effect April 1, 2022.

Federal Register Open PDF 87 FR 19351

Impact dates

Dec 31, 2023
EU exception for certain steel headings expires
Apr 1, 2022
Tariff-rate quota effective for Japanese steel imports; HTSUS modifications take effect

Key directives

Establish tariff-rate quota of 1.25 million metric tons on Japanese steel imports
Require steel to be melted and poured in Japan for in-quota treatment
Amend U.S. Note 16 of HTSUS subchapter III of chapter 99
Revise clause 2 of Proclamation 9705 to add Japan exception
Revise clause 1 of Proclamation 9980 for derivative steel articles
Secretary to recommend updates to in-quota volumes as warranted
Secretary, in consultation with DHS Secretary and USTR, to ensure compliance with melt-and-pour requirement

Who is ordered

Timeline

Immediate

Tariff-rate quota takes effect April 1, 2022 for Japanese steel
HTSUS amendments implemented
Japan added to exception list for derivative steel articles

Near term (90d)

Monitoring of quota implementation begins
Annual review of U.S.-Japan arrangement anticipated

Long term

Potential updates to in-quota volumes based on Secretary recommendations
Ongoing cooperation on non-market excess capacity and carbon intensity
Quota continues unless expressly reduced, modified, or terminated

Risks & tensions

Melt-and-pour requirement creates compliance enforcement burden and potential for transshipment disputes
Quota volume may prove insufficient or excessive depending on market conditions; mechanism for adjustment is advisory to President, not automatic
Maintains 25% tariff on other countries despite Japan deal, leaving trade friction with allies unresolved
Annual review commitment creates ongoing negotiation uncertainty