TAIPEI CITY, Taiwan, May 2, 2018 (Newswire.com) - United States President Donald Trump has delayed the implementation of metals tariffs for an additional 30 days for the European Union, Canada and Mexico. Morgan Newfield analysts reported that negotiations with Argentina, Brazil and Australia have resulted in permanent exemptions from the tariffs on steel and aluminum.
The White House announced the decisions shortly before the temporary exemptions were due to expire but did not provide any details on the terms of the agreements reached.
Morgan Newfield analysts say the White House has also decided to extend discussions with Canada, the European Union and Mexico for another 30 days. These negotiations will prioritize the restriction of imports, prevention of transshipment and national security.
Trump’s administration has stated that there will be no further extensions of tariff exemptions beyond this final 30 day period.
Towards the end of March, Trump called on a decades old trade law to establish grounds for protection of US steel and aluminum manufacturers and decided to impose metals tariffs on steel and aluminum imports but granted temporary exemptions to several countries and a permanent exemption to South Korea.
The tariffs, which have caused tensions between the United States and a number of its trading partners have also resulted in a number of challenges being brought before the World Trade Organization.
Morgan Newfield analysts say that for temporary tariffs exemptions to become permanent, countries exporting steel and aluminum would be forced to agree to quotas that would offer protection to US metals producers.
Source: Morgan Newfield