30% HIKE IN IMPORT TARIFFS
Japan will raise tariffs on U.S. steel products and gasoline by 30 percent as a retaliatory measure if the United States does not retract its steel import curbs, which the World Trade Organization has concluded are illegal, according to trade sources.
Japan will also increase tariffs on some other import items from the U.S., including leather products and clothing, by 5 percent, the sources said Friday.
Japan will notify the WTO of its intention to take retaliatory measures against the U.S. if Washington fails to withdraw the import limits by the end of this month, they 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 10.7 billion a year, roughly equal to the estimated damages Japan will incur a year due to the U.S. steel import curbs, the sources said.
The government is expected to finalize the decision this week, they said.
On Nov. 10, the WTO's highest court, the Appellate Body, said in its final verdict that the "safeguard" steel import curbs imposed by the U.S. violate global trade rules.
Japan has said it will retaliate if the U.S. fails to abide by the WTO ruling.
The European Union, one of eight WTO members filing complaints with the global trade watchdog over the steel restrictions, has already announced it will impose punitive tariffs worth up to $2.2 billion by the end of the year.
In response to the actions of its trading partners, the U.S. government is reportedly considering adopting a compromise measure, such as abolishing the safeguard restrictions ahead of schedule to avert a tit-for-tat trade war.