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Japan temporarily sets higher tariffs on US beef

US beef headed into Japan will temporarily see a higher tariff rate.

University of Missouri livestock economist Scott Brown says this is a safeguard provision that’s been in place for several years.  “Because of the increase in US beef imports in Japan, for the fiscal year that will end in March, they are going to increase the tariff from what was a 25.8% tariff to a 38.5% tariff.”

He tells Brownfield this is an issue that could continue to hinder export growth for US beef in that market for years to come.

While the bilateral trade agreement signed between the US and Japan in 2019 does reduce tariffs on US beef over the next 15 years, Brown says the safeguard threshold wasn’t addressed.  “However, there’s the ability to have discussion between the US and Japan in terms of what to do if that safeguard provision is triggered moving forward,” he says. 

The tariff will be in place through April 16, 2021 and Brown says it’s likely sales of US beef to Japan will be delayed until after the 25 percent tariff goes back into place next month. 

AUDIO: Scott Brown, University of Missouri

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