Japan threatens U.S. with retaliatory tariffs
TOKYO (AP) -- Japan threatened today to impose $85 million in retaliatory duties on American imports unless the United States backs away from steel tariffs ruled unfair by the World Trade Organization.
The threat followed one delivered earlier this month by the European Union and, if carried out, would be the first time Japan has adopted such sanctions against imports from its biggest trading partner.
A Finance Ministry official said the government would officially notify the WTO today of a list of "rebalancing tariffs" of up to 30 percent it plans to slap on American products including steel, plastics and clothing.
Under WTO rules, Japan must wait 30 days before it can impose those punitive duties, the official said on condition of anonymity. Prime Minister Junichiro Koizumi's Cabinet will make the final decision about whether to press ahead with retaliation.
Also today, a South Korean trade official said his country may level retaliatory measures on American products if the United States doesn't drop the steel duties.