HS Code:
This category pertains to iron or steel products from Japan or the United Kingdom, as specified under heading 9903.81.81 and enumerated in U.S. note 16 to the subchapter. These products are subject to specific aggregate quantity limits for each calendar year starting from January 1, 2022, as prescribed in subdivision (g) of the note. The trade of these products is governed by tariff rate quotas (TRQs) established to manage import volumes and protect domestic industries while maintaining trade relations with key partners like Japan and the UK.
Total Trade Volume
Approximately 1.5 million metric tons
Data from 2022
Source
U.S. International Trade Commission (USITC) and U.S. Customs and Border Protection (CBP)
Average Rate
25% ad valorem (for quantities exceeding TRQ limits)
Highest Rate
25% ad valorem (Section 232 tariffs apply outside quota limits)
Lowest Rate
0% (within TRQ limits as per agreements)
Shift to Tariff Rate Quotas from Section 232 Tariffs
Reduced tariff burden for Japan and UK within quota limits, fostering increased trade while protecting U.S. domestic steel industry through volume caps.
2022
Rising Demand for Sustainable Steel
Increased interest in low-carbon steel production in Japan and the UK, potentially influencing future trade agreements and market share under TRQs.
2022-2023
In early 2022, the U.S. replaced Section 232 tariffs with TRQs for steel imports from Japan and the UK, allowing a specific volume of iron and steel products to enter duty-free or at reduced rates.
March 2022 (Japan), May 2022 (UK)
Enhanced market access for Japanese and UK steel exporters within quota limits, stabilizing trade relations while maintaining safeguards for U.S. producers.
The U.S. government introduced mechanisms to monitor aggregate quantities under subdivision (g) of U.S. note 16, with potential for annual adjustments based on market conditions and domestic needs.
Ongoing since January 2022
Provides flexibility in managing import volumes, potentially affecting trade flows if quotas are revised or exceeded.