Tokyo, Nov 22: Japan will raise tariffs on US steel products and gasoline by 30 per cent if the United States does not retract its steel import curbs, a report said today. Japan will increase tariffs by five per cent on some other import items from the United States, including leather products and clothing, the Kyodo news agency said, quoting trade sources.
In March 2002, the US administration raised tariffs on imported steel products by nearly 30 per cent, a move that analysts said was largely politically motivated.
Earlier this month, the World Trade Organisation (WTO) ruled the US tariffs violated global trade rules after the EU lodged a complaint at the Geneva-based group.
Japan will notify the WTO of its intention to take the retaliatory measures if Washington fails to withdraw the import limits by the end of this month, the report said.
Once it does so, Japan would be able to initiate action after 30 days.
The total value of retaliatory steps to be taken will be around USD 98 million a year, roughly equal to the estimated amount of damages Japan will incur a year due to the US steel import curbs, Kyodo quoted the sources as saying.
The government is expected to finalise the decision next week, the report said.
If the United States refuses to comply with the WTO ruling to lift the tax, the EU will, in accordance with WTO rules, impose its own trade sanctions on a number of American products worth USD 2.2 billion.
Bureau Report