US set to slap tariffs on steel and aluminium from the EU
According to sources, the move could happen on Thursday
The United States will announce plans to impose tariffs on steel and aluminium from the European Union as early as Thursday morning, two people briefed on the matter said, confirming a report in The Wall Street Journal.
The decision would land ahead of a Friday deadline for exemptions to the planned metals tariffs amid stalled trade talks with the EU, and would be likely to prompt retaliation from the bloc.
The two sources said an announcement was planned for Thursday morning in Washington, but that the timing could still change.
The US Commerce Department and US Trade Representative’s Office did not immediately respond to requests for comment.
President Donald Trump imposed a 25 per cent tariff on steel imports on March 23 and a 10 per cent tariff on aluminium, but granted temporary exemptions to the EU, Canada, Mexico, Brazil, Australia and Argentina.
Mr Trump invoked a 1962 trade law to erect protections for US steel and aluminium producers on national security grounds, amid a worldwide glut of both metals that is largely blamed on excess production in China.
The European Commission, which co-ordinates trade policy for the 28 EU members, has said the bloc should be permanently exempted from the tariffs since it was not the cause of overcapacity in steel and aluminium.
The commission has said the EU will set duties on €2.8 billion (Dh11.94bn) of US exports, including peanut butter and denim jeans, if its metals exports to the United States worth €6.4bn are subject to tariffs.
The tariffs, which have increased friction with US trading partners worldwide and prompted several challenges before the World Trade Organisation, are aimed at allowing the US steel and aluminium industries to increase their capacity utilisation rates above 80 per cent for the first time in years.
Economists say the standoff with the EU could tip towards a trade war, particularly after Mr Trump last week launched another national security investigation into car and lorry imports that could lead to new US tariffs.
The Trump government has given permanent metals tariff exemptions to several countries including Australia, Argentina and South Korea, but in each case set import quotas.
Friday’s deadline for exemptions also affects Mexico and Canada, which are in contentious negotiations with the US on the North American Free Trade Agreement that Mr Trump has said he wants to revamp, or abandon if the talks fail.
Updated: May 31, 2018 01:53 PM