WASHINGTON/TOKYO (REUTERS) - The United States and Japan on Monday (Feb 7) were set to announce a deal to grant Japanese steelmakers relief from Trump-era US tariffs for a limited amount of steel imports, people familiar with the plans said.

The sources, who spoke on condition of anonymity because the deal was not yet public, said it will allow about 1.25 million metric tonnes into the US duty-free, with volumes above that level subject to the 25 per cent Section 232 national security tariffs.

The sources said the agreement differs significantly from a deal announced last year by the US and the European Union that removes tariffs from more than 4 million tonnes of steel annually and leaves Japanese aluminum subject to 10 per cent US tariffs.

Unlike the EU deal, past steel product exclusions from tariffs will not be added to Japan's quota, and Japan will not participate in US-EU talks on a global agreement to discourage trade in steel made with high carbon emissions, the sources added.

Japan's steel industry is highly dependent on coal-fired blast furnace production, while more than 70 per cent of US steel is made with electric-arc furnaces that emit less carbon.

Spokesmen for the Commerce Department and the US Trade Representative's office declined to comment on the US-Japan steel talks.

Last week, Japan's Ambassador to Washington, Mr Koji Tomita, said that negotiations between Japan and the United States over US steel and aluminum tariffs were robust and the EU deal would serve as a template for an agreement with Japan.

Japan, Britain, South Korea and other US allies have said they should not be subject to the metals tariffs imposed in 2018 by former president Donald Trump under a Cold War-era national security trade law.

US Commerce Secretary Gina Raimondo has announced her intention to start talks with Britain towards resolving the metal tariff dispute.