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U.S. warns Japan's planned tariff hike on U.S. beef would harm ties

U.S. Agriculture Secretary Sonny Perdue warned Friday that
Japan's planned imposition of emergency tariffs on frozen beef from
the United States and other countries "would harm our important
bilateral trade relationship with Japan."

"I am concerned that an increase in Japan's tariff on frozen
beef imports will impede U.S. beef sales and is likely to increase
the United States' overall trade deficit with Japan," Perdue said in
a statement.

Perdue was referring to a tariff increase to 50 percent from
38.5 percent starting in August on frozen beef imports from countries
that do not have a free trade agreement with Japan, a measure
Japanese officials said is in response to a recent surge in imports.

"This would harm our important bilateral trade relationship with
Japan on agricultural products," he said.

U.S. exports of beef and beef products to Japan totaled $1.5
billion last year, making it the United States' top market, according
to the U.S. Agriculture Department.

Perdue said he has asked the Japanese government "directly and
clearly" to "make every effort" to address Washington's concern about
the so-called safeguard tariffs that Tokyo will introduce for the
period from Aug. 1 to March 31.

The measure does not affect Australia, a major beef exporter
that has an FTA with Japan.

Soon after his inauguration in January, President Donald Trump
withdrew the United States from the Trans-Pacific Partnership, a
pending regional FTA that -- once implemented with U.S. participation
-- would have reduced Japan's 38.5 percent tariff on fresh and frozen
beef cuts to 9 percent over 16 years.

The Trump administration could take up the emergency tariffs
during the second round of a high-level economic dialogue the
Japanese and U.S. governments are planning to hold in October in
Washington.

With Trump criticizing Tokyo's hefty trade surplus with
Washington, his administration may push Japan to drop the safeguard
tariffs and call for the start of negotiations for a bilateral FTA.

The economic dialogue involves Japanese Deputy Prime Minister
Taro Aso and U.S. Vice President Mike Pence, two top officials who
launched it during their meeting in April in Tokyo.

Japan has decided to impose emergency tariffs after frozen beef
imports reached 89,253 tons in the April-to-June quarter, up 17.1
percent from a year earlier.

Under World Trade Organization rules, Japan can introduce
safeguard tariffs when imports grow more than 17 percent in a quarter
on a year-on-year basis. (July 28)