Japan adds tariffs for US WTO violations

Japan announced Monday that it plans to raise tariffs on 15 US products by 15 percent in retaliation for the US continuation of the Byrd Amendment, which gives funds raised by duties charged to foreign countries for their violations of US trade laws directly to industries affected rather than putting the money in the US treasury.

The World Trade Organization ruled in 2003 that the amendment is illegal and ordered the US to repeal it. While the US agreed to do so, it has so far not complied with the WTO’s ruling.

Japan said it would give the US until September 1 to stop operating under the Byrd Amendment, which the WTO said in its ruling unfairly protects American manufacturers. If the US does not change its policy by then, Japan will begin to levy the higher tariffs on products made from US steel, such as ball bearings and airplane parts.

The cost of the new levies could be as much as ¥5.7 billion (£29 million, $51 million), according to sources in the Japanese trade ministry.

The European Union and Canada have already levied tariffs on various US products in connection with its continued operation of the amendment. The EU has hiked tariffs on US-made paper, fabric, clothing, shoes, and machinery, while Canada has put such taxes on oysters, live swine, and cigarettes.

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