The US is to impose tariffs on steel and aluminium imports from allies in Europe and North America. The US said a 25% tax on steel and 10% tax on aluminium from the EU, Mexico and Canada will start at midnight. The move immediately triggered vows of retaliation from Mexico and the EU, which called the tariffs “protectionism, pure and simple”.
The UK said it was “deeply disappointed” by the US decision, which followed weeks of negotiations. EU trade commissioner Cecilia Malmstrom said it was a “bad day for world trade”, while European Commission president Jean-Claude Juncker said the move was “totally unacceptable. The EU had “no choice” but to bring a case before the World Trade Organization and impose duties on US imports, he added.
Europe had previously outlined a list of items, including US bourbon, cranberries and jeans, as potential targets for retaliation. Mexico’s Economy Ministry said it would place tariffs on items such as steel, pork legs and shoulders, apples, grapes, blueberries and cheese. President Trump announced plans for tariffs on foreign steel and aluminium in March, justifying them on national security grounds. He has argued that global oversupply of steel and aluminium, driven by China, threatens US steel and aluminium producers, which are vital to the US.
Since the announcement South Korea, Argentina, Australia and Brazil have agreed to put limits on the volume of metals they can ship to the US in lieu of tariffs. The US granted temporary exemptions to the EU, Canada and Mexico amid negotiations over limits. That deadline was due to expire on 1 June, having already been extended by a month.
Credit: BBC
