Delays to tariffs on Canada, EU, Mexico

WASHINGTON - The White House on Monday announced that the steel and aluminum tariff exemptions for European Union member countries, Canada and Mexico will be extended until June 1 in order to give "a final 30 days" for them to reach agreements over trade negotiations.

The decisions came just hours before temporary exemptions from the tariffs on these countries were set to expire at 12:01 am on Tuesday.

In a statement, the White House said the details of the deals with Brazil, Argentina and Australia would be finalized shortly, and it did not disclose terms.

"The administration is also extending negotiations with Canada, Mexico, and the European Union for a final 30 days. In all of these negotiations, the administration is focused on quotas that will restrain imports, prevent transshipment, and protect the national security," the White House added.

A source familiar with the decision said there would be no further extensions beyond June 1 to stave off tariffs.

US President Donald Trump on March 23 imposed a 25 percent tariff on steel imports and a 10 percent tariff on aluminum, but granted temporary exemptions to Canada, Mexico, Brazil, the EU, Australia and Argentina.

As the Republic of Korea has agreed to follow a quota for its steel exports to the US as well as other measures to reduce excessive steel capacity, it will be exempt from the steel tariff but will face additional tariffs on aluminum exports to the US, which took effect on Tuesday.

Trump has invoked a 1962 trade law to erect protections for US steel and aluminum producers on national security grounds.

The tariffs, which have increased frictions with US trading partners worldwide and have prompted challenges before the World Trade Organization, are aimed at allowing the two US metals industries to increase their capacity utilization rates above 80 percent for the first time in years.

The White House said the agreements reflect administration efforts "to reach fair outcomes with allies to protect our national security and address global challenges to the steel and aluminum industries".

But Canada, Mexico and the European Union have all insisted they will not accept quotas to gain permanent exemptions from the US tariffs.

"The EU should be fully and permanently exempted from these measures, as they cannot be justified on the grounds of national security," it said in a statement.

Xinhua - Reuters

(China Daily 05/02/2018 page12)