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Trump Grants Additional Tariff Relief to Key U.S. Trading Partners

Thursday, May 10, 2018

(North American Meat Institute)

President Donald Trump decided to extend by one month a temporary exemption from steel and aluminum tariffs for Canada, Mexico and the European Union. The decision gives three of the U.S.’s four largest trading partners until June 1 to reach an agreement with the administration to avoid 25 percent tariffs on aluminum and 10 percent duties on steel imports. The tariffs were set to take effect May 1.

Argentina, Brazil and Australia, three other trading partners that had also been granted a temporary exemption from the tariffs, will be subject to quota agreements. Argentina’s steel exports will capped at 135 percent of its three-year average export volume. Meanwhile, Brazil’s exports of semi-finished steel will be capped at the average amount shipped between 2015 and 2017, while finished steel will be capped at 70 percent of its three-year average.

South Korea is the only country to have finalized a deal for a permanent exemption from the tariffs, after agreeing to cap its steel exports to the U.S. at 70 percent of the average export volume over the previous three years. The country, however, will still be subject to the 10 percent tariff on aluminum exports. The U.S. imposed tariffs on steel and aluminum imports as part of its Section 232 action, which determined such imports posed a threat to national security.

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