United States allies line up for exemptions from Trump's aluminum, steel tariffs

United States allies line up for exemptions from Trump's aluminum, steel tariffs

"All of them will see an increase in their cost of doing business", Isely said. "We have large trade deficits with Mexico and Canada".

President Donald Trump offered the prospect of relief from steel and aluminum tariffs to countries that "treat us fairly on trade" on Thursday, a gesture apparently aimed at renewing pressure on Canada and Mexico to give ground in separate trade talks.

The president says he will exempt Canada and Mexico as "a special case" while negotiating for changes to the North American Free Trade Agreement.

Data released Wednesday showed the USA foreign trade deficit widened in January to its highest level in nine years - heaping pressure on Trump , who had campaigned on a promise to reverse that trend.

Last week Trump stunned the world - and his own aides - with an off-the-cuff announcement of his plan, even before White House lawyers judged the legality of the tariffs.

Dr Fox said the policy championed by Mr Trump was "the wrong way" to tackle the problem of cheap steel being dumped on the United States market. "Their excess capacity alone exceeds the total US steel-making capacity".

"The proposal so far would be a global tariff on steel and aluminum", he said.

Trump in recent weeks had complained India's tariff on the import of American motorcycles-specifically Harley-Davidsons-was too high.

Brazil, the second-largest exporter of steel to the US, is also the largest importer of USA metallurgical-grade coal to fuel the steelmaking furnaces.

The White House is moving closer to imposing tariffs on aluminum and steel imports, but America's neighbors will be exempt - for now.

Those "other countries" can try to negotiate their way out of the tariffs, he indicated, by ensuring their trade actions do not harm America's security.

Philip Levy, a former trade adviser in President George W. Bush's administration, told AP that the flaw in Trump basing his tariffs on national security was that military allies could ask to be excluded, undermining the president's stated objective of protecting domestic steel and aluminum mill jobs. Century Aluminum said it would reopen a smelter in Kentucky and double the work force there, to 600. Therefore, Senate Finance Chairman Orrin Hatch voiced that the ultimate takers of the punishment will be both the American firm and individual, who purchases the steel and aluminum products.

He said that in the long term, countries that have been slapped with the tariffs will likely seek recourse through the World Trade Organization, which he expected to rule against the United States.

Mexico's Economy Minister Ildefonso Guajardo raised the prospect of reprisals if Washington pushed ahead with tariffs and insisted NAFTA remain "a trilateral accord" in response to a United States proposal to hold talks with Canada and Mexico separately.

President Donald Trump today imposed heavy tariffs on imported steel and aluminium which he said were necessary to boost the U.S. industry suffering from "unfair" business practices, a move that has sparked fears of a global trade war. If the ill-fated direction toward trade tariffs for Canadian steel and aluminum is forged, retaliation will be necessary. They say that exemptions for specific countries to the tariffs would only allow China - whose huge plant expansions have driven a global glut of steel and aluminium - to skirt the duties by exporting through third countries.

Mr Brady and more than 100 House Republicans urged Mr Trump on Wednesday to use narrowly focused tariffs to take action against China and other countries instead of across-the-board measures.

In addition to such iconic brands, the American products that would face a tit-for-tat European Union tariff of 25 per cent range from steel bars and motor boats to t-shirts and orange juice. "If we're in NATO, he wants to make sure that NATO gets more money so that NATO can protect all of us and fulfill its goal", Mnuchin told CNBC.



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