Published: Fri, June 01, 2018
Global Media | By Derrick Guzman

Steel and aluminum tariffs to apply to EU, Mexico, Canada

Steel and aluminum tariffs to apply to EU, Mexico, Canada

The Trump administration imposed the duties on imports from most other us trading partners earlier this year to stem a flood of cheap steel and aluminum into the country.

The next question would be: how will the (US) President (Donald Trump) react?

Tariffs of 25 percent on steel imports and 10 percent on aluminum will be imposed on the EU, Canada and Mexico from midnight (0400 GMT on Friday), Ross told reporters.

While not confirming directly that the U.S. would decide to impose tariffs, he said: "It's up to the European Union to decide if it wants to take retaliatory measures". Canada and Mexico have retaliated while the European Union says its own reprisals are ready to go.

Study says auto tariffs will cost 157K jobs MORE announced Thursday morning that Trump had chose to make good on a threat to place stiff steel and aluminum tariffs on Canada, Mexico and the European Union, a move that ignited tensions between White House and business groups.

Canadian Prime Minister Justin Trudeau (seen here with President Trump in October) on Thursday called the argument that USA steel import tariffs were necessary for national security reasons an "affront" to Canada.

Late yesterday, Mr Trump issued a statement about the NAFTA negotiations, saying the days of the United States being taken advantage of on trade were over.

Canadian Prime Minister Justin Trudeau said the steel and aluminium tariffs were "totally unacceptable" and a violation of a centuries-old relationship between the USA and Canada. The list of US exports that European Union would impose additional tax on has already been decided, and notified to WTO.

Mexico announced it will retaliate with duties on U.S. products including fruit, pork bellies, cheese and flat steel.

The Mexican peso dropped about 1 percent, hitting its weakest level against the dollar in almost 15 months, and the Canadian dollar shed about 0.6 percent.

The European Union is weighing up slapping new rates on products from Harley-Davidsons, Levi jeans and bourbon whiskey - targeting specific products from states represented by influential Republicans in the Congress and Senate.

EU members have given broad support to a European Commission plan to set duties on €2.8bn ($3.4bn) of United States exports if Washington ends tariff exemptions.

A second batch of American exports worth around €3.7 billion ($4.3 billion) a year could eventually be targeted.

Trump has maintained that his government will impose the tariffs unless a "fair" NAFTA deal is signed. America only has the capacity to produce 1.8 million metric tons a year, according to a U.S. Commerce Department report. Mexico was the third largest, behind South Korea. He estimated the US tariffs would affect $4 billion in trade between the two countries.

Malmstrom said the Trump measures "will cause a lot of damage to our steel and aluminum industry".

EU, Canada and Mexico also draw up retaliatory measures to Washington's stinging steel and aluminium duties. Thursday's tariff announcement by the White House will further complicate agreeing on a G-7 agenda.

"The United States has been taken advantage of for many decades on trade". The EU also started the process of filing a complaint with the World Trade Organization. Mexico has also vowed to impose retaliatory import duties on USA products.

Trump's announcement lifted American steel and aluminum stocks because those companies stand to benefit from penalties against their foreign competitors.

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