The Strategist

The US postpones introduction of steel and aluminum duties until June

05/01/2018 - 06:03

The White House postponed introduction of customs duties on steel and aluminum products before the beginning of June. This decision affects the European Union, Canada and Mexico.

The US postponed introduction of customs duties on steel and aluminum products until June 1. The transfer of the term affects the European Union, Canada and Mexico, the White House reported on the night of Tuesday, May 1. The previous exceptional order was in force until May 1.

German Chancellor Angela Merkel and French President Emmanuel Macron during their visits to US President Donald Trump held talks on the introduction of a long-term exceptional order for the EU. In this case, duties at a rate of 25 percent for steel products and 10 percent for aluminum products should not be applied to products from the EU.

Washington also reached an agreement with South Korea on steel imports, as well as "principled agreements" with Argentina, Australia and Brazil, "details of which will soon be finalized," the White House spokesman said.

Trump announced introduction of duties in March. If they eventually apply to European goods, the EU will take retaliatory measures, including retaliatory duties and a complaint to the World Trade Organization.

Meanwhile, the European Commission is preparing a response against the United States in the light of the lack of certainty within the trade dispute. "Right now our priority is a dialogue," European Commissioner for Trade Cecilia Malmström, told Frankfurter Allgemeine Sonntagszeitung.

If the United States does not make a "long and unconditional" exception for European aluminum products and steel, the EU will respond. "We are preparing a triple reaction, which will be compatible with the norms of the WTO," Malmström said. It consists in filing a complaint with the WTO, defensive measures for the European economy and imposing fine customs duties on a number of American goods. Among them are American steel products, motorcycles Harley-Davidson, whiskey, jeans, orange juice.