Japan’s lead tariff negotiator was in Washington, D.C. this past week seeking to finalize details of the U.S.-Japan Trade and Investment Agreement that was recently announced by the White House.
“I think there was a bit of relief in the Japanese trade, having met with several importer distributors and member exporters while I was there,” says U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom who was in Tokyo when the agreement was announced. “I think the fact that a deal had been done on autos, which is obviously one of the big sticking points with Japan, and laid to rest any concerns there might have been on possible retaliation from the Japanese side, should a deal not have been reached.”
U.S. red meat exports to Japan were put on a level playing field with other competing nations under the 2020 U.S.-Japan Trade Agreement, signed during the first Trump administration, Halstrom notes.
“Most pork is imported at zero tariff,” Halstrom says. “While Japan’s beef tariff is currently the highest of any major import market at 21.6%, it is level with other suppliers and is scheduled to phase to 9% by 2033.”
He says the 2020 agreement put the U.S. on a level playing field, even though U.S. duties are higher than some other countries.
“The fact that we got this deal done, at least at the minimum, maintains that level playing field,” Halstrom adds. “I think that’s important to remember, because it wasn’t that long ago where we were at a severe disadvantage tariff wise.”
