I think the US needs that kind of warning

David Woods World Trade Agenda Consultants

The move will mark the first time Japan has taken this type of action in a trade dispute.

From 18 June, imports of US steel and steel products will be hit with a 100% tariffs valued at $4.88m (�3.55m), Japan's trade and industry ministry announced.

Japan has joined China, South Korea, the European Union and other steel exporters in condemning the US tariffs, which they say are illegal under the World Trade Organization's (WTO) rules.

"The US commitment, which was once taken virtually for granted, to open trade is now hugely in doubt," said World Trade Agenda Consultants' David Woods.

"I think the US needs that kind of warning because we are getting to the point where it's going to be extremely difficult to see any movement in trade liberalisation."

US tariffs

The US began imposing tariffs of up to 30% on certain imported steel products on 20 March, using global trade rules that allow temporary safeguards to protect domestic industries against imports.

Japan has complained about the US tarriffs to the WTO.

Another $118.5m in penalties could be applied by Japan if the WTO rules that the US levies violate the trade body's rules.

Japan formally set the tariffs on Thursday after talks between US Trade Representative Robert Zoellick and Japanese Trade Minister Takeo Hiranuma failed to resolve the dispute.

A final WTO ruling is not expected for at least two years.