U.S. Shields Allies from Steel Tariffs

The U.S. has shielded a list of allies, including Europe, Australia, South Korea, Argentina and Brazil, from steel and aluminum tariffs that took effect March 23.

U.S. Trade Representative Robert Lighthizer said President Donald Trump decided to “pause the imposition of the tariffs with respect to those countries.”

Japan, one of the United States’ closest allies, has not been granted exemptions to the steel and aluminum tariffs. Japanese prime minister Shinzo Abe will meet with Trump at the president’s Florida resort on April 17 and 18. The leaders will discuss “reciprocal trade and investment ties” then, as well as North Korea.

Trump announced in March that the U.S. would impose a 25 percent tariff on imported steel and 10 percent on aluminum but exempted Canada and Mexico as long as they agreed to an updated North American Free Trade Agreement.

He also left the door open for allies to negotiate their own exemptions, sparking a furious lobbying effort by trading partners like the European Union, which is threatening retaliation if it’s hit by the duties.

Sources: Bloomberg, Reuters