US poised to impose steel, aluminium tariffs on EU

The US is poised to impose steel and aluminium tariffs on the European Union (EU) and possibly on Canada and Mexico, this week when a temporary exemption expires as trade talks remain at an impasse, a media report said.

The threat of tariffs was supposed to force trading partners into quickly agreeing to US concessions, including limiting imports of steel and aluminium and other trade terms that favour American companies and workers, an informed official told The New York Times on Wednesday.

In addition to the metal tariffs, President Trump has threatened to impose levies on imported automobiles, the bulk of which comes from Canada, Mexico, South Korea, Japan and the EU.

Discussions between the countries are continuing and President Donald Trump could ultimately decide not to impose tariffs on any of the trading partners, according to the official.

But with the exemption deadline quickly approaching and the countries still far apart on many issues, a resolution could be tough to pull off by Friday.

The EU, Canada and Mexico, all of which were granted temporary exemptions from the metal tariffs, said they were unsure whether the tariffs would go into effect on Friday, but were readying retaliatory measures that would impose equal harm on American consumers and businesses in case they are triggered.

Chrystia Freeland, the Canadian Foreign Minister, met US Trade Representative Robert Lighthizer on Wednesday to discuss the tariffs, as well as Nafta (North American Free Trade Association).

"I would like to absolutely assure Canadians, particularly those who work in steel and aluminium industries, that the government is absolutely prepared to and will defend Canadian interests and Canadian jobs," she said.

"We will respond appropriately."

Cecilia Malmstrom, the European Trade Commissioner, told the European Parliament on Tuesday that she expected to have a "positive agenda with the US side, with no tariffs or quotas", reports The New York Times.

"Realistically, however, we do not think we can hope for that," she added.

Mexican officials were also planning to retaliate with their own limits on American imports should tariffs on steel and aluminium be imposed.

As the steel and aluminium tariffs went into effect in late March, the Trump administration has insisted that trading partners either accept the tariffs or commit to voluntarily restraining their own metal exports with quotas.

--IANS

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