US, Japan reach deal to cut tariffs on Japanese steel, fight excess output

“The United States and Japan on Monday announced a deal to remove Trump-era tariffs from about 1.25 million metric tons of Japanese steel imports annually after Washington granted similar access for European Union steelmakers last year,” said Reuters during late Tuesday morning in Asia.

The news quotes US official to mention, “The new deal, which excludes aluminum at Japan's request, will take effect on April 1 and requires Japan to take ‘concrete steps’ to fight global excess steel manufacturing capacity, largely centered in China.”

A joint statement was also mentioned stating that Japan would start to implement within six months "appropriate domestic measures, such as anti-dumping, countervailing duty, and safeguard measures or other measures of at least equivalent effect,” to establish more market-oriented conditions for steel.

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FX implications

Considering a lack of major data/events and the market’s wait for Thursday’s US Consumer Price Index (CPI), traders paid a little heed to the news with the USD/JPY prices waiting for Tokyo open after ending the sluggish week-start day near 115.00