Trade Agreement between Japan and the United States of America

The Trade Agreement between Japan and the United States of America came into force on 1 January 2020, eliminating tariffs for a significant portion of goods traded between both countries, covering various sectors such as steel and iron, automotive, and digital trade. 

The agreement includes most energy products and their constituents including but not limited to: iron, base metal, steel, aluminum, battery packs, and cells. Customs duties on automobile and auto parts are subjected to further negotiations with respect to the elimination of customs duties.

US lifted Section 232 tariffs on steel from Japan on April 1, 2022. On February 7, 2022, the US and Japan announced that they had reached an agreement to partially lift 25% tariffs on certain Japanese-origin steel imports that had been imposed in 2018 under Section 232.

Specific rule of origins apply in order to qualify for preferential tariff treatment, depending on whether goods are wholly produced in the parties' territories, undergoing change in tariff classification or satisfying a minimum local value content of 10%.

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