White House Extends Steel, Aluminum Tariff Negotiations Another 30 Days

US postpones decision on steel tariffs

US postpones decision on steel tariffs

The White House announced yesterday it is delaying a decision on on 25 percent tariffs on steel and 10 percent duties on aluminum for several close US trading partners until June 1.

Concerns in recent days centered around whether that exemption would be made permanent.

Ross, in his CNBC interview, did not provide details on the Trump administration's specific demands on China, but said: "We have a pretty good idea of what we need to come out with". From the domestic metals producers' point of view, the initial announcement was met with some disappointment that necessary import restrictions were being postponed.

Discussions continue with China.

If they fail to agree on a course of action to protect intellectual property rights from depredation, U.S. punitive tariffs on $50 billion in Chinese goods are set to take effect May 22 and are certain to set off a chain of retaliation that could spill over into the global economy.

The last U.S. ambassador to Canada under Barack Obama said he regrets the uncertainty being caused by his country's current trade policies.

The last-minute delay of steel tariffs for the EU, Canada and Mexico reflect an ongoing negotiation tactic by the U.S.

"We know ultimately that both tariffs and quotas would be negative for all parties". What is more, the European steel association Eurofer acknowledged Monday's USA decision but noted that there will be an increase in imports.

"The EU should be fully and permanently exempted from these measures, as they can not be justified on the grounds of national security", reads the statement.

President Trump took to his Twitter account to inform about the U.S. delegation heading towards China to hold talks on the trade deficit between the two countries. Closure of the US market creates the potential for a "double whammy" to the European industry.

But Canada and Mexico, which each send more than half their steel production each year into the United States, have repeatedly said that they expect a full exemption from the duties and will not pay a tariff or agree to a quota.

The US President offered the 30-day reprieve to the EU, Mexico and Canada after Wall Street closed down on Monday over fears of a tit-for-tat spat.

Trump administration officials have said that in lieu of tariffs, steel-and aluminium-exporting countries would have to agree to quotas created to achieve similar protections for USA producers. The United States under Trump is becoming a lot more restrictive in its trade policies, according to James Lewis, senior vice president at the Center for Strategic and International Studies in Washington.

In her meeting with Trump, Merkel said, she saw little progress in obtaining permanent exemptions.

"Overcapacity in the steel and aluminum sectors does not originate in the EU", the European Commission's statement said.

"It is not realistic to resolve all issues through one round of negotiations, but we believe that, as long as the USA is honest, to resolve the relevant issues, the negotiation will be a positive one", said foreign ministry spokeswoman Hua Chunying said. The E.U.'s trade commissioner, Cecilia Malmstrom, had drawn up a list of carefully chosen retaliatory tariffs, including one on motorcycles (meant to affect Harley-Davidson Inc., which is based in Wisconsin, the home state of House Speaker Paul D. Ryan) as well as bourbon (from Kentucky, the home state of Senate Majority Leader Mitch McConnell). The US on Monday confirmed that South Korea was granted a permanent exemption.

An irony here is that many influential people in the European Union share some of the Trump Administration's concerns about Chinese mercantilism.

We do extensive business with the US.

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