EU, Canada and Mexico Will Face 25% Steel Tariff
05/31/2018 - The Trump administration is going ahead with its 25% tariff on steel imports from Mexico, Canada and the European Union and will begin assessing it on Friday.
The decision to pull the trigger on the steel and aluminum tariffs comes after negotiations between the U.S. and its allies failed to produce any compromises. The administration announced the tariffs in March, but delayed implementation for certain countries to allow time for negotiations.
The decision prompted swift reaction from the countries, which are promising to retaliate, as well as from the European Steel Association (EUROFER).
“The U.S. measure is naked protectionism – today is a bad day for the world trade system,” said EUROFER director general Axel Eggert. “However, what’s done is done – the U.S.’ administration seems not to believe that being close, political, economic and geo-strategic partners is sufficient grounds to prevent the EU from being hit.”
“EUROFER condemns the U.S. action and calls on the European Commission to swiftly adopt safeguard measures that are broad in scope, comprehensive in the countries covered – but that ensure access to traditional trade flows.”
He called on the European Commission to adopt measures protecting the European steel industry from imports that otherwise would have been destined for the U.S. market.
“The EU thus needs to act swiftly in its own interest to defend the internal market from the ‘Section 232 effect,’” he said.
European Commission president Jean-Claude Juncker, too, said the administration’s decision is mere protectionism and promised that Europe would respond, The Washington Post reported. The EU has said it would target Harley-Davidson motorcycles and Kentucky bourbon.
Meanwhile, Mexico’s Economy Ministry said it would look to impose trade measures against a variety of U.S. products, including some steel and pipe products, lamps, berries, grapes, apples, cold cuts, pork chops and various cheese products, The Post said.
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