US imposes steel, aluminium tariffs

THE United States said on Thursday it will impose harsh tariffs on steel and aluminium imports from the European Union, Canada, Mexico at midnight (0400 GMT on Friday) – another move sure to anger Washington’s trading partners.

The announcement by Commerce Secretary Wilbur Ross was sure to cast a long shadow over a meeting of finance ministers from the world’s Group of Seven top economies that opens later in the day in Canada. Ross said talks with the EU had failed to reach a satisfactory agreement to convince Washington to continue the exemption from the tariffs imposed in March.

Negotiations with Canada and Mexico to revise the North American Free Trade Agreement were “taking longer than hoped” and there was no “precise date” for concluding them, so their exemption also will be removed, Ross said.

The announcement was confirmed by presidential proclamation shortly after Ross addressed reporters.

Despite weeks of talks with his EU counterparts, Ross said the US was not willing to meet the European demand that the EU be “exempted permanently and unconditionally from these tariffs”.

“We had discussions with the European Commission and, while we made some progress, they also did not get to the point where it was warranted either to continue the temporary exemption or have a permanent exemption,” Ross said.

Ross downplayed the threats of retaliation from those countries, but said talks can continue even amid the dispute to try to find a solution.

And President Donald Trump has the authority to alter the tariffs or impose quotas or “do anything he wishes at any point” – allowing “potential flexibility” to resolve the issue.

Trump imposed the tariffs of 25 percent on steel and 10 percent on aluminium using a national security justification, which Ross said encompasses a broad array of economic issues.

South Korea negotiated a steel quota, while Argentina, Australia and Brazil have arranged for “limitations on the volume they can ship to the US in lieu of tariffs”, Ross said.

“We believe that this combined package achieves the original objectives we set out, which was to constrict imports to a level to allow those industries that operate domestically to do so on a self-sustaining basis going forward.”

French Economy Minister Bruno Le Maire had warned before the announcement that the EU would take “all necessary measures” if the US imposed the tariffs.

“World trade is not a gunfight at the OK Corral,” Le Maire quipped, referring to a 1957 western movie

German Chancellor Angela Merkel said the EU would respond in a “firm and united” manner to the tariffs.