U.S. Beef Exports to Japan Face Increased Tariffs

TOKYO, JAPAN – U.S. beef exports to Japan from April 1, 2020, exceeding the safeguard trigger level of 242,000 metric tons, which is good for the American cattle industry but also pulls the trigger on increased tariffs for the second year. According to the U.S.-Japan Trade Agreement (USJTA), the island nation has raised tariffs on U.S. beef imports to 38.5 percent from 25.8 percent for 30 days. This is the first time the safeguard measure has been imposed on U.S. beef imports since August 2017, according to Reuters. The tariff hike is expected to have a limited impact on the beef market. Under the agreement, Japan lowered tariffs on U.S. beef from the most-favored-nation rate of 38.5 percent to 26.6 percent in January of 2020. Then in April of last year, the rate slipped to 25.8 percent and will drop to 9 percent by 2033. On April 17th, the rate will drop to 25 percent.
(SOURCE: All Ag News)