Trump to implement steel, aluminum tariffs against EU, Canada and Mexico

Commerce Secretary Wilbur Ross said starting Friday, steel and aluminuim products from will be subject to the same tariffs as most other nations when imported into the USA.

“The EU, Canada, and Mexico make up about half of USA steel imports, so the economic effect of these tariffs would be far more than anything we’ve seen to date”, he said.

Canadian officials said at a press conference that Canada would enact tariffs on $12.8 billion in USA exports, effective July 1, to retaliate against Trump’s action.

Trump first announced the fees in March, saying they were a national security issue because unfair competition from foreign producers of steel and aluminum damages the US.

The US tariffs coincide with and could complicate the Trump administration’s separate fight over Beijing’s strong-arm tactics to overtake US technological supremacy and negotiations to rewrite the North American Free Trade Agreement.

“Throughout these talks, the US has sought to use the threat of trade restrictions as leverage to obtain concessions from the EU”, Malmström said. One U.S. industry official who has been in contact with negotiators from both sides said neither country had been notified by the White House as of Wednesday evening and they were learning of the possibility of tariffs from news reports.

The United States confirmed steel and aluminium tariffs would be levied on imports from long term allies Canada, the European Union and Mexico. Barring an 11th-hour reprieve, those exemptions will expire as scheduled.

As of midnight on May 31, a 25% tariff on steel and a 10% tariff on aluminum from the European Union, Canada and Mexico will go into effect, according to the New York Times.

Read the rest at the Toronto Star. Some observers say a G6-plus-one scenario is already shaping up, with Trump as the outlier.

Institute CEO Jim McGreevy called the tariffs a new tax on the USA beer industry.

United Kingdom exports of aluminium to the U.S. are tiny, but in March the UK’s Aluminium Federation said it feared the 10% tariffs.

Gareth Stace, director of UK Steel, said: “President Trump had already loaded the gun and today we now know that the U.S. administration has unfortunately fired it and potentially started a damaging trade war”.

Canada, Mexico and the European Union combined exported $US23 billion worth of steel and aluminium to the USA previous year – almost half of the $48 billion total steel and aluminium imports in 2017. “We believe these tariffs aren’t compatible with WTO rules”, she said in Lisbon.

Since the announcement South Korea, Argentina, Australia and Brazil have agreed to put limits on the volume of metals they can ship to the USA in lieu of tariffs. Through the first three quarters of 2017, the US ran a relatively minor trade deficit with Canada of about a half-million metric tons, according to Department of Commerce data.

European officials had braced for the tariffs and the EU has threatened to retaliate against USA orange juice, peanut butter and other goods in return.

President Donald Trump has long threatened tariffs on imports into the United States.

Still, Canada’s economy grew at its slowest pace in almost two years in the first quarter amid cooler exports and a weaker housing sector, Statistics Canada said.

“We must ensure our markets are not destabilised by millions of tonnes of steel being diverted away from the USA and into Europe”.

UK Steel said the tariffs will “see damage not only to the UK steel sector, but also the United States economy”.

The Government Of Canada has said in the past that it would retaliate against the States if these tariff’s were imposed on Canada.

Qualtrough, however, says it is “difficult to fathom” how Canadian steel could pose a security threat, given the close security relationship between the two countries and extent of integration between their respective defence sectors.

Around half of Canada’s steel production is exported mostly to the US and more than 80 per cent of aluminum production is exported to the U.S. The EU shares many of Washington’s concerns about China’s efforts to acquire advanced technology through compulsory licensing practices, cybertheft and other measures.

Trump announced worldwide steel and aluminum tariffs in March but granted exemptions to some major trading partners. “They’re critical for national security”.

“I don’t think it helps the NAFTA negotiations”, Lester said.

“As to Canada, Mexico, you will recall that the reason for the deferral had been pending the outcome of the NAFTA talks”, he said.