SANTA BARBARA — President Reagan on Friday imposed tariffs of 100% on medium-sized Japanese color televisions, powerful lap-top and desk computers and certain hand power tools, to retaliate for Japan's failure to allow more American products into its markets and to halt the underpriced "dumping" of Japanese semiconductor computer chips in other nations.
The measure, which takes effect immediately, covers goods currently in customs warehouses, but not those on retailers' shelves. It may double the price of television sets and other products finished in Japan, though those assembled in the United States by Japanese companies or their subsidiaries would not be affected.
"The health and vitality of the U.S. semiconductor industry are essential to America's future competitiveness. We cannot allow it to be jeopardized by unfair trading practices," Reagan said in a written statement.
Semiconductors are electronic circuits that store and manipulate information and are used in a variety of products from computers to consumer electronics.
Heightens Tension
The President's action, although expected, heightens the trading tension between the United States and its second largest trading partner, and it raises the risk that Japan will take steps to reduce its imports from the United States.
However, in Tokyo, Hajime Tamura, minister of international trade and industry, while condemning Reagan's decision, declared today that Japan will refrain from taking retaliatory action of its own.
"Hoping to prevent this issue from causing severe damage to the world's free-trading system, the Japanese government has decided, from this broader perspective, not to take any retaliatory measures immediately," Tamura said.
According to the White House, Japan has failed to live up to an agreement, signed Sept. 2, 1986, in which the Japanese government promised to prevent below-cost sales of Japanese produced semiconductors in third countries, and to enhance access to the lucrative Japanese market for foreign-made products.
The sanctions are being applied to:
--The more powerful computers available for the home market, including both desk-top and portable units with a capacity of 16 bits.
--Power hand tools, including certain construction-grade rotary drills, electropneumatic rotary and percussion hammers, grinders, sanders and polishers used by industry for residential and non-residential construction.
--Eighteen- to 20-inch color televisions.
"The products upon which the tariffs are being raised were chosen to minimize the impact on American consumers and businesses," Reagan said. "All these products are available from domestic or other foreign producers."
White House spokesman Marlin Fitzwater said that because most of the products are available from other producers, price increases felt by American consumers "should be minimal."
On March 27, Reagan announced that sanctions would be imposed. He made public a list of 17 broad product categories representing $1.9-billion worth of Japanese imports a year as potential targets.
The list was trimmed to imports worth $300 million annually--the amount the government says equals the injury sustained by the U.S. semiconductor industry in the eight months since the two countries signed the trade agreement on microchips.
Computer Share $180 Million
According to Fitzwater, the computers account for $180 million in U.S. sales, the televisions $90 million and the tools $30 million.
He said there would be no impact on televisions assembled in the United States from Japanese parts.
Tamura, the Japanese trade minister, reaffirmed today that Japan will, however, file an appeal under the General Agreement on Tariffs and Trade, seeking bilateral consultations with the United States initially.
GATT is a system of free-trade rules set up in 1948 to reduce trade barriers through international negotiations. GATT has 92 member nations, and the rules cover more than 80% of world trade.
Although a ruling supporting Japan's claim that the American punitive tariffs violate GATT rules would give international sanction to retaliatory tariffs by Japan, Reagan is widely expected to lift the sanctions before any decision could be reached in GATT.
Echoing remarks by White House Chief of State Howard H. Baker Jr., Tamura declared that "a trade war will not occur."
'Will Not Have Trade War'
"Japan and the United States are nations with the highest level of friendly relations. Although we may exchange words which sound like a trade war, we will not have a trade war," he said.
Tamura said he would present new, current data to U.S. Trade Representative Clayton K. Yeutter next week and renew an appeal for immediate withdrawal of the sanctions. The two officials are scheduled to meet both Tuesday and Wednesday to discuss the semiconductor dispute and overall U.S.-Japan trade issues.
