Japan To Raise Tariffs On U.S. Beef
Japan will increase tariffs on U.S. beef temporarily in an effort to slow import volumes. Currently set at 25.8%, the tariff will rise to 38.5% as early as this week, and will be in effect for one month, according to USDA’s Foreign Agricultural Service (FAS).
As part of a 2019 trade pact with the U.S., Japan is allowed to raise tariffs if beef imports reach 242,000 metric tons for the fiscal year. Japan Customs reported imports of US beef from April 1, 2020, to March 10, 2021, reached 242,229 tonnes, exceeding the safeguard trigger level. The temporary tariff increase will begin March 18 and end April 16.
The USJTA began in January of 2020, under which Japan committed to phasing out most tariffs, enacting tariff reductions, or implementing lower duties on a specific quantity of imports.
FAS said that under the USJTA, “…Japan immediately lowered tariffs on US beef from the most-favored nation rate of 38.5% to 26.6%. Tariffs were reduced further to 25.8% on April 1, 2020, and will eventually phase to 9% by 2033.
“The next round of tariff cuts was scheduled to occur on April 1, 2021, however due to imposition of the safeguard this will be delayed until April 17 when tariffs are reduced to 25%,” FAS added.
The Japan Times reported that Japanese consumption of U.S. beef has surged as imports from Australia has declined. The Australian beef market has seen prices spike and cattle supplies dwindle after years of drought.
