U.S. trade representative Robert Lighthizer said several American allies would initially be exempt from blanket steel and aluminum tariffs. The March 22 comments were made hours before the 25% tariff on steel and the 10% duty on aluminum are scheduled to begin being enforced on March 23.

Speaking before the Senate Finance Committee, Lighthizer said the EU, along with Argentina, Australia, Brazil and South Korea, would be exempted. Canada and Mexico have already been excluded.

“The idea that the president has is that, based on a certain set of criteria, some countries should be out,” Lighthizer stated. “What he has decided to do is pause the implementation of the tariffs in respect to those countries.”

Those American allies have been lobbying hard for a reprieve from the tariffs, which were abruptly announced on March 3. The news “stunned U.S. trading partners, alarmed American industry leaders and roiled stock markets,” according to Reuters.

On Sunday March 18 the U.S. Department of Commerce released the procedures that U.S. companies must follow to exempt specific products from the Trump administration’s impending tariffs on steel and aluminum,

The administration of President Donald Trump has justified the restrictions on national security grounds.

“If Mr. Trump does follow through and exempt all of those countries from the tariffs permanently, some of the largest foreign suppliers of steel to the United States will not be subject to them,” according to the New York Times. “In total, the countries Mr. Lighthizer listed, together with Canada and Mexico, account for more than half of the total volume of steel sold to the United States in 2017.”

The expanded list of exemptions indicated the tariffs were aimed primarily at Beijing for what Trump has called unfair trade practices.

“In particular, the president expressed concern that Chinese metals were coming into the United States through other countries, a process called “transshipping,” according to the Times. “Administration officials say Chinese steel is often processed into a new product and then routed through another country before hitting American shores.”

On March 22, Trump announced $60 billion in targeted tariffs against China, though a list of products has not been released to the public.

U.S. steel users have warned against the steel and aluminum tariffs. A letter signed by the Industrial Fasteners Institute and 14 other trade associations representing over 30,000 US steel-using manufacturers warned that the entire U.S. steel supply chain “will be damaged by restrictions on steel imports.”

Fastener industry veterans such as IFI chair Phil Johnson predicted the 2018 Trump tariffs may cost the U.S. 500,000 assembly jobs. It is estimated that for every added steel job 13 assembly jobs will be lost, he calculated. Johnson cited wheel nuts from China and Taiwan as becoming too competitive for U.S. manufacturers – along with other sub-assemblies and finished goods.

“We are not gaining if we are chasing away assembly jobs,” he reasoned.

The Trump tariffs, which include bar, rod, wire, ingot and flat rolled steel, may result in punitive retaliation tariffs on U.S. products, including likely targets of liquor, bluejeans and motorcycles.

The IFI had been active on the tariff issue for nearly a year when the Department of Commerce began a 232 national security investigation on steel and aluminum.

Johnson has called on the fastener industry to contact members of Congress, the White House (email the President from WhiteHouse.gov or tweet President Trump @realDonaldTrump. Or click here to sign the petition online.) Web: IndFast.org