U.S. President Donald Trump issued another month-long reprieve of his tariffs on steel and aluminum imports for key allies.
Scheduled to begin on May 1, the Trump tariffs would have impacted such American allies as Canada, Mexico, Brazil, Argentina, the European Union, and Australia, which collectively account for more than 50% of U.S. steel imports.
Key U.S. allies were bracing for a trade war as Trump’s initial exemption was set to expire. With hours remaining, the Trump administration extended the reprieve for another month. Now those countries have until June 1 to work out individual deals to avoid the 25% tariff on steel and 10% tariff on aluminum.
European leaders expressed frustration at the temporary delay.
“The U.S. decision prolongs market uncertainty, which is already affecting business decisions,” the European Commission stated. “The EU should be fully and permanently exempted from these measures, as they cannot be justified on the grounds of national security.”
On Tuesday White House trade adviser Peter Navarro said every country granted an exemption from the tariffs will face an import quota and other restrictions.
“Any country or entity like the European Union, which is exempt from the tariffs, will have a quota and other restrictions,” Navarro stated.
Navarro indicated this extension is the last one Trump will grant, meaning that agreements between the U.S. and its allies must be finalized by June 1 or the tariffs will be applied.
Both Canada and Mexico have repeatedly said that they will not pay a tariff or agree to a quota.
South Korea is the only country with a full exemption after it agreed to quotas, Reuters reports. The White House said on Monday it had reached agreements for permanent exemptions for Argentina, Australia and Brazil.
In the U.S., more than 3,500 exclusion requests have been filed with the Commerce Department, according to Regulations.gov, though only about 550 have been made available for public comment. Once public, domestic steel manufacturers have 30 days to file an objection.
Industrial Fasteners Institute’s Washington representative Jennifer Baker Reid has called the exclusion process “incredibly burdensome.”
The IFI has been trying for more than a year to convince the Trump administration against implementing a steel tariff, which ultimately were rationalized after the Commerce Department reported that steel and aluminum imports “threaten to impair the national security,” as defined by Section 232 of the Trade Expansion Act of 1962.
The IFI is part of the Coalition of American Metal Manufacturers and Users, which opposes the 232 tariffs under the slogan,“Tariffs are Taxes.”
The fastener industry can contact members of Congress or the White House (email the President from WhiteHouse.gov or tweet President Trump @realDonaldTrump. Or click here to sign an online petition.) Web: IndFast.org
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