The United States will announce plans to impose tariffs on steel and aluminium from the European Union as early as Thursday morning, two people briefed on the matter said, confirming a report in the Wall Street Journal.

The decision would land ahead of a Friday expiration deadline for exemptions to the planned metals tariffs amid stalled trade talks with the EU and would likely prompt retaliation from the bloc.

The two sources said an announcement was planned for Thursday morning in Washington but that the timing could still change.

The US Commerce Department and US Trade Representative’s Office did not immediately respond to requests for comment.

President Donald Trump on March 23rd imposed a 25 per cent tariff on steel imports and a 10 per cent tariff on aluminium, but granted temporary exemptions to the EU, Canada, Mexico, Brazil, Australia and Argentina.

Trump invoked a 1962 trade law to erect protections for US steel and aluminium producers on national security grounds, amid a worldwide glut of both metals that is largely blamed on excess production in China.

The European Commission, which coordinates trade policy for the 28 EU members, has said the bloc should be permanently exempted from the tariffs since it was not the cause of overcapacity in steel and aluminium.

The Commission has said the EU will set duties on €2.8 billion of US exports, including peanut butter and denim jeans, if its metals exports to the United States worth €6.4 billion are subject to tariffs.

The tariffs, which have increased friction with US trading partners worldwide and prompted several challenges before the World Trade Organization, are aimed at allowing the US steel and aluminium industries to increase their capacity utilization rates above 80 per cent for the first time in years.

Economists say the standoff with the EU could tip toward a trade war, particularly after Trump last week launched another national security investigation into car and truck imports that could lead to new US tariffs.

The Trump administration has given permanent metals tariff exemptions to several countries including Australia, Argentina and South Korea, but in each case set import quotas.

Friday’s deadline for exemptions also affects Mexico and Canada, which are in contentious negotiations with the United States on the North American Free Trade Agreement that Trump has said he wants to revamp, or abandon if the talks fail. – Reuters </s> U.S. President Donald Trump suddenly seems to be a big fan of dropping all “tariffs, barriers and subsidies” with at least one trading partner, mere hours after he tweeted “tariffs are the greatest.”

On Tuesday night, Trump issued a tweet proposing that both the U.S. and the European Union drop all three as European Commission President Jean-Claude Juncker prepares to visit Washington for trade talks on Wednesday.

“That would finally be called free market and fair trade!” Trump tweeted.

“Hope they do it, we are ready — but they won’t!”

READ MORE: Trump tweets ‘Tariffs are the greatest!’ as $12B in emergency aid announced for U.S. farmers

The tweet came on the same day that Trump issued this one, amid news that his administration was starting a $12 billion plan to help U.S. farmers amid trade disputes.

Trump’s trade wars have seen the U.S. hit Canada, the European Union and Mexico with tariffs on aluminum and steel — a move that has seen the Great White North fire back with retaliatory tariffs on $16.6-billion of U.S. steel, aluminium and consumer products.

The U.S. has also imposed tariffs on $34 billion in Chinese products and threatened tariffs on $500 billion more in goods. China, meanwhile, retaliated with duties on pork and soybeans.

EU officials have managed expectations about the progress that Juncker is likely to make with Trump.

— With files from The Associated Press </s> Theresa May has hit back at Donald Trump’s “unjustified” decision to impose tariffs on steel and aluminium producers, which has pushed the EU to the brink of a trade war with the US.

In her first direct intervention, more than 24 hours after the US announced the tariffs would be imposed on the EU, Canada and Mexico, May said the US should immediately rethink its decision, warning it would have ramifications for US defence projects.

“I am deeply disappointed at the unjustified decision by the US to apply tariffs to EU steel and aluminium imports,” she said. “The US, EU and UK are close allies and have always promoted values of open and fair trade across the world.

“Our steel and aluminium industries are hugely important to the UK, but they also contribute to US industry including in defence projects which bolster US national security.”

May said the EU and UK “should be permanently exempted from tariffs” and Britain would work with the bloc to protect and safeguard workers and industries.

The EU has opened a case at the World Trade Organization after the US imposed a 25% duty on European steel and a 10% duty on European aluminium on Friday.

“We are not in a trade war, but we are in a very difficult situation caused by the United States,” said Cecilia Malmström, the EU trade commissioner. “The US is playing a dangerous game here.”

Wilbur Ross, the US commerce secretary, said insufficient progress had been made in talks with the EU, Canada and Mexico, since the US had agreed a temporary reprieve from the tariffs for the three close US allies after they were unveiled by Trump two months ago.

The Canadian prime minister, Justin Trudeau, issued an immediate tit-for-tat response, announcing tariffs of up to 25% on US imports equivalent to C$16.6bn, the total value of Canadian steel exports last year. The tariffs will cover steel and aluminium as well as orange juice, whiskey and other food products.

The EU is yet to announce its plans for retaliatory measures, although the president of the European commission, Jean-Claude Juncker, has promised imminent action. Targets are likely to be classic US products such as peanut butter, whiskey and Levi’s jeans, though under WTO rules, EU retaliatory measures cannot come into force until 20 June.

The tariffs are particularly damaging to the UK’s hopes of a trade liberalisation deal with the US after Brexit. Liam Fox, the international trade secretary, said the tariffs were “patently absurd” and that it would be “ a great pity if we ended up in a tit-for-tat trade dispute with our closest allies”.

May is expected to raise the tariffs directly with Trump when the pair meet at the G7 in Canada next week, where the issue is likely to dominate, though Downing Street has not ruled out the possibility of an earlier discussion. </s> Image copyright Getty Images

A senior US official has said that the European Union (EU) and six other countries will be exempt from steel and aluminium tariffs announced by President Trump, at least temporarily.

Trade Representative Robert Lighthizer told a Senate panel that Mr Trump had decided to "pause" the import duties while further discussions took place.

The tariffs of 25% on steel and 10% on aluminium are due to come into effect on Friday.

The EU had argued it should be exempt.

Aside from the EU Mr Lighthizer said Argentina, Australia, Brazil, Canada, Mexico and South Korea would be exempted.

"The idea that the president has is that, based on a certain set of criteria, that some countries should get out," he told the Senate committee hearing.

"There are countries with whom we're negotiating and the question becomes the obvious one that you think, as a matter of business, how does this work?

"So what he has decided to do is to pause the imposition of the tariffs with respect to those countries."

Earlier this month, the EU's trade commissioner said the bloc would "stand up to the bullies" over protectionism.

Cecilia Malmström said protectionism was being "used as a weapon to threaten and intimidate us".

Analysis: By Kim Gittleson, New York business correspondent

In announcing exemptions for the European Union, Argentina, Australia, South Korea and Brazil, the Trump administration has effectively narrowed the countries that it is targeting with its protectionist trade policies. It also blunts the potential fallout to the US economy from the implementation of these trade barriers.

It pays to do some maths.

US imports of steel last year totalled $33bn.

But if the countries granted exemptions are removed from that total - including Canada and Mexico, whose exemptions had already been announced - then less than a third of US steel imports would be subject to tariffs.

This significantly lowers the potential economic impact of the tariffs - as well as the potential help it might provide to domestic steel industry here in the United States.

And it suggests that in steel tariffs, as with many policy actions the White House has taken, the reality of what is being done falls slightly short of the rhetoric.

Gareth Stace, a director with the trade association UK Steel, said the temporary exemption from tariffs would be "greeted with an enormous sigh of relief" by the UK's steel sector.

"It now provides us with the breathing room to find a more permanent solution.

"The alternative would be a severe curtailment of our ability to export to the US. With some 350,000 tonnes of steel sold to the US last year, 7% of our total exports, it is clear any tariffs would ultimately hit the sector hard," he added.

A UK government spokesperson said they welcomed the "signals" that the US government was considering EU wide exemptions for limited time period.

"The government will continue to work closely with the EU and the US Administration for a full exemption, and to ensure UK companies are not negatively impacted, either directly or indirectly.

"We remain concerned about the impact of these tariffs on global trade and will continue to work with the EU on a multilateral solution to the global problem of overcapacity, as well as to manage the impact on domestic markets." </s> • The Trump administration started imposing tariffs on European, Canadian, and Mexican steel and aluminum on Friday morning.
• Canada called it an “affront”, the UK said it was “patently absurd”, and the French compared it to a cowboy shoot-out.

US allies have been responding furiously to the Trump administration’s decision to impose steep tariffs on their steel and aluminum exports as part of an escalating trade war.

Starting Friday, steel imports from those countries will be hit with a 25% tariff, while aluminum imports will be hit with a 10% tariff. Tariffs are essentially taxes on foreign goods coming into a country – (you can read more about how that works here).

The Trump administration’s move is meant to be a show of support to the US steel and aluminum industries from foreign producers that undercut domestic prices. The White House previously said that protecting those industries was a matter of national security, although many experts have questioned that justification.

Here’s how European nations, Canada, and Mexico, have reacted to Trump’s latest move.

UK Trade Secretary Liam Fox on Friday slammed the tariffs as a “patently absurd” move, and that UK government is considering counter-measures.

Barry Gardiner, a trade spokesman for the opposition Labour party, said: “We will not be cowed, we will not be bullied by the President. The President has said he believes he could win a trade war. We think a trade war is in nobody’s interests. It’s not in our interests, it’s not in the EU’s interests, and it’s not in the interest of American workers.”

The EU handles trade policy for its 28 member states, many of which also responded separately, including Brit ian, Germany, and France.

Commission President Jean-Claude Juncker has threatened to hit back at the US with EU tariffs on equal value, telling reporters on Thursday: “It’s totally unacceptable that a country is imposing unilateral measures when it comes to world trade.”

The EU previously released a list of US products that would be subject to tariffs in the event the metal restrictions went into effect. It included blue jeans, motorcycles, boats, bourbon whiskey, rice, playing cards, and steel.

France: This is like the OK Corral

Bruno Le Maire, France’s finance minister, echoed Juncker’s warnings by saying: “Our US friends must know that if they were to take aggressive actions against Europe, Europe would not be without reaction.”

Le Maire added: “World trade is not like the settling of accounts at the OK Corral,” referring to a 30-second shootout between a law-and-order gang and a group of cowboys in Tombstone, Arizona, in 1881.

Prime Minister Justin Trudeau described the move as “totally unacceptable” and an “affront to the thousands of Canadians who have fought and died alongside their American brothers in arms.”

He also described the tariff impositions as “illegal and counterproductive” under NAFTA and WTO rules, and that Trump’s national security justification was “simply ridiculous.”

Trudeau added that Canada would impose “dollar for dollar tariffs” on US products, including steel and aluminum from July 1, which would remain in place until the US lifted its own tariffs. Other US consumer products that could be hit include maple syrup, pizza, and toilet paper.

Canadian Foreign Minister Chrystia Freeland told reporters that Canada’s retaliatory tariffs were “strongest action by Canada in the post-War era.”

Mexico: Let’s keep it in proportion.

Mexican Economy Minister Ildefonso Guajardo described the new landscape as a “clearly defined battlefield,” but not a trade war. He also vowed that the country would take revenge proportionally.

He told Mexican radio on Thursday, as cited by Reuters: “A trade war is when there is an escalation of conflict. In this case, it is simply a response to a first action.

“We should stick to the clearly defined battlefield, where the response is appropriate and proportional.”

In a separate statement on Thursday, the Mexican government also called Trump’s new tariffs “measures that affect and distort international commerce in goods,” and that they were “neither adequate nor justified,” according to The Hill.

It said it would “impose equivalent measures” on US goods including foil, lamps, pork legs and shoulders, apples, and cheese.

Germany: No insults, but trying to fix it.

The country’s economic minister, Peter Altmaier, said his country would stand with the EU and even work “more closely” with Mexico and Canada, who were also hit by the trade war.

Altmaier told German TV on Friday, according to Reuters: “We tried to do it through negotiation and we will now do it by standing together and formulating a common European answer, possibly working more closely with Mexico and Canada.”

What the US says

US Commerce Secretary Wilbur Ross, who announced the tariffs, said on Thursday that there was “nothing weird” about the countries’ reactions, and that they “will get over that in due course.” </s> The European Union will impose counter measures after the United States decided to no longer exempt it from steel and aluminium tariffs, the head of the bloc's executive Jean-Claude Juncker said on Thursday.

The United States said it was moving ahead with tariffs on 

 aluminium and steel imports from Canada, Mexico and the EU, 

 ending a two-month exemption and potentially setting the stage 

 for a trade war with some of America's top allies.

"This is a bad day for world trade," Juncker said in a speech in Brussels. "So we will immediately introduce a settlement dispute with the WTO and will announce counter balancing measures in the coming hours."

"It is totally unacceptable that a country is imposing unilateral measures when it comes to world trade."

Responding to the announcement, a spokesman for the UK government said: "We are deeply disappointed that the US has decided to apply tariffs to steel and aluminium imports from the EU on national security grounds.

"The UK and other European Union countries are close allies 

 of the US and should be permanently and fully exempted from 

 the American measures on steel and aluminium." </s> Media playback is unsupported on your device Media caption Trump on new tariffs: 'We haven't been treated fairly'

US President Donald Trump has stepped up his war of words over trade tariffs, threatening to "apply a tax" on imports of cars from the European Union.

Mr Trump said other countries had taken advantage of the US for years because of its "very stupid" trade deals.

The trade wrangle began on Thursday when Mr Trump vowed to impose hefty tariffs on steel and aluminium imports.

That brought a stiff response from trading partners and criticism from the IMF and WTO.

EU trade chiefs have reportedly been considering slapping 25% tariffs on around $3.5bn (£2.5bn) of imports from the US, following Mr Trump's proposal of a 25% tariff on imported steel and 10% on aluminium.

They would target iconic US exports including Levi's jeans, Harley-Davidson motorbikes and Bourbon whisky, European Commission head Jean-Claude Juncker said.

What has Mr Trump said now?

In a tweet on Saturday, the president said: "If the EU wants to further increase their already massive tariffs and barriers on US companies doing business there, we will simply apply a Tax on their Cars which freely pour into the US.

"They make it impossible for our cars (and more) to sell there. Big trade imbalance!"

A second tweet decried the "$800 Billion Dollar Yearly Trade Deficit because of our 'very stupid' trade deals and policies".

Mr Trump added: "Our jobs and wealth are being given to other countries that have taken advantage of us for years. They laugh at what fools our leaders have been. No more!"

How many EU-made cars go to the US?

The US is the largest export market for EU cars - making up 25% of the €192bn (£171bn; $237bn) worth of motor vehicles the bloc exported in 2016 (China was second with 16%).

Germany is responsible for just over half of the EU's car exports, so new US tariffs would hurt the car industry there. But German carmakers also build hundreds of thousands of cars in the US every year - providing many US jobs that German officials say Mr Trump overlooks.

Do fellow Republicans back Mr Trump's trade threats?

A number have questioned the wisdom of the tariff proposal and have been urging the president to reconsider.

Image copyright Getty Images Image caption A VW dealership in California. Mr Trump says there is a "big trade imbalance"

Senator Orrin Hatch said: "I'm very surprised, he's had very bad advice from somebody down there. The people who are going to have to pay these tariffs are going to be the American citizens."

Senator Ben Sasse said: "Kooky 18th Century protectionism will jack up prices on American families - and will prompt retaliation."

And industry bodies like the US Motor and Equipment Manufacturers Association have expressed deep concern, saying the benefits from the recent cuts in corporation tax "could all be for naught".

But Mr Trump's Commerce Secretary Wilbur Ross stood firmly behind the plans, saying the president was "fed up with the continued over-capacity, he's fed up with the subsidisation of exports to us".

Why does he want to impose tariffs?

It chimes with his "America First" policy and the narrative that the US is getting a raw deal in its trade relations with other countries.

Mr Trump tweeted on Friday that the US was "losing billions of dollars" and would find a trade war "easy to win".

The president is using a clause in international trade rules which allows for tariffs for national security reasons.

But his move has not come totally out of the blue.

The commerce department recommended tariffs in February after conducting a review under rarely invoked national security regulations contained in a 1962 trade law.

Mr Trump had already announced tariffs on solar panels and washing machines in January.

What has the international response been?

The IMF said others could follow the US leader's precedent by claiming tough trade restrictions were needed to defend national security.

Canada said tariffs would cause disruption on both sides of the border. Prime Minister Justin Trudeau slammed the tariffs as "absolutely unacceptable".

He told reporters in Ontario he was "confident we're going to continue to be able to defend Canadian industry".

It is one of several countries, including Brazil, Mexico and Japan, that have said they will consider retaliatory steps if the president presses ahead with his plan next week.

World Trade Organization Director General Roberto Azevedo said: "A trade war is in no-one's interests."

But Mr Trump tweeted, "Trade wars are good."

Are trade wars good?

Analysis by Theo Leggett, business correspondent

If trade wars really were good and easy to win, the World Trade Organization probably wouldn't exist.

Most countries believe that negotiations are best carried out and disputes settled through a rules-based system. Introducing trade barriers on a tit-for-tat basis has the potential to harm companies on both sides.

But that's unlikely to bother Mr Trump. His campaign rhetoric drew heavily on the perceived threat to traditional US industries from foreign interlopers acting unfairly. He's simply continuing in that vein.

And it's unlikely to register much with the steelworkers of Pennsylvania and Indiana. Concerned about their jobs and the future, many will welcome Mr Trump's comments. </s> Thursday, May 31, 2018 at 3:22 am |

President Donald Trump’s administration is planning to impose tariffs on European steel and aluminum imports after failing to win concessions from the European Union, a move that could provoke retaliatory tariffs and inflame trans-Atlantic trade tensions.

The tariffs are likely to go into effect on the EU with an announcement by Friday’s deadline, according to two people familiar with the discussions. The administration’s plans could change if the two sides are able to reach a last-minute agreement, said the people, who spoke on condition of anonymity to discuss internal deliberations.

Trump announced in March the United States would slap a 25 percent tariff on imported steel, and a 10 percent tariff on imported aluminum, citing national security interests. But he granted an exemption to the EU and other U.S. allies; that reprieve expires Friday.

Europe has been bracing for the U.S. to place the restrictions even as top European officials have held last-ditch talks in Paris with American trade officials to try to avert the tariffs.

“Realistically, I do not think we can hope” to avoid either U.S. tariffs or quotas on steel and aluminum, said Cecilia Malmstrom, the European Union’s trade commissioner. Even if the U.S. were to agree to waive the tariffs on imported steel and aluminum, Malmstrom said, “I expect them nonetheless to want to impose some sort of cap on EU exports.”

European officials said they expected the U.S. to announce its final decision Thursday. The people familiar with the talks said Trump could make an announcement as early as Thursday.

U.S. Commerce Secretary Wilbur Ross attended meetings at the Organization for Economic Cooperation and Development in Paris on Wednesday, and U.S. Trade Representative Robert Lighthizer joins discussions in Paris on Thursday.

The U.S. plan has raised the threat of retaliation from Europe and fears of a global trade war — a prospect that is already weighing on investor confidence and could hinder the global economic upturn.

If the U.S. moves forward with its tariffs, the EU has threatened to impose retaliatory tariffs on U.S. orange juice, peanut butter and other goods in return. French Finance Minister Bruno Le Maire pledged that the European response would be “united and firm.”

Besides the U.S. steel and aluminum tariffs, the Trump administration is also investigating possible limits on foreign cars in the name of national security.

“Unilateral responses and threats over trade war will solve nothing of the serious imbalances in the world trade. Nothing,” French President Emmanuel Macron said in an impassioned speech at the Organization for Economic Cooperation and Development in Paris.

In a clear reference to Trump, Macron added, “These solutions might bring symbolic satisfaction in the short term. … One can think about making voters happy by saying, ‘I have a victory, I’ll change the rules, you’ll see.'”

But, Macron said, those “who waged bilateral trade wars … saw an increase in prices and an increase in unemployment.”

Tariffs on steel imports to the U.S. can help local producers of the metal by making foreign products more expensive. But they can also increase costs more broadly for U.S. manufacturers who cannot source all their steel locally and need to import the raw material. That hurts the companies and can lead to more expensive consumer prices, economists say.

Ross criticized the EU for its tough negotiating position.

“There can be negotiations with or without tariffs in place. There are plenty of tariffs the EU has on us. It’s not that we can’t talk just because there’s tariffs,” he said. He noted that “China has not used that as an excuse not to negotiate.”

But German Economy Minister Peter Altmaier insisted the Europeans were being “constructive” and were ready to negotiate special trade arrangements, notably for liquefied natural gas and industrial goods, including cars.

Macron also proposed to start negotiations between the U.S., the EU, China and Japan to reshape the World Trade Organization to better regulate trade. Discussions could then be expanded to include other countries to agree on changes by the end of the year.

Ross expressed concern that the Geneva-based World Trade Organization and other organizations are too rigid and slow to adapt to changes in global business.

“We would operate within [multilateral] frameworks if we were convinced that people would move quickly,” he said.

Ross and Lighthizer seemed like the odd men out at this week’s gathering at the OECD, an international economic agency that includes the U.S. as a prominent member.

The agency issued a report Wednesday saying “the threat of trade restrictions has begun to adversely affect confidence” and tariffs “would negatively influence investment and jobs.” </s> SHANGHAI (Reuters) - China unveiled plans on Friday to impose tariffs on up to $3 billion of U.S. imports in retaliation against U.S. tariffs on Chinese steel and aluminum products, as the world’s two largest economies stood on the brink of a trade war.

China was considering a 15 percent tariff on U.S. products including dried fruit, wine and steel pipes and a 25 percent tariff on pork products and recycled aluminum, the commerce ministry said in a statement on it website.

China has assembled a list of 128 U.S. products in total that could be targeted if the two countries are unable to reach an agreement on trade issues, the ministry added.

U.S. President Donald Trump signed a presidential memorandum on Thursday targeting up to $60 billion in Chinese goods with tariffs, but only after a 30-day consultation period that starts once a list is published.

Beijing’s disclosure of its planned retaliation to proposed tariffs on Chinese metal exports to the United States, served as a warning to Washington as both sides brandished their weapons while holding off from starting a full-blown trade war.

The commerce ministry said China would implement the measures in two stages: first the 15 percent tariff on 120 products including steel pipes and wine worth $977 million and later the higher 25 percent tariff on $1.99 billion of pork and aluminum.

“We intend to impose tariffs on certain U.S. imports to balance out the losses caused to Chinese interests by the U.S. tariffs on imported steel and aluminum,” the ministry said.

The ministry added it would take legal action under the framework of the World Trade Organization to maintain the stability of global trading rules. It added, however, it hoped it could resolve issues with the U.S. through dialogue.
EU countries approve tariffs worth €2.8 billion in retaliation against U.S. tariffs on steel and aluminium.