US to extend relief to some of its important allies from aluminium and steel tariffs

Temporary exemptions from US imported aluminium and steel tariffs are about to come to an end on Tuesday, May 1, 2018. So, the Trump administration has decided to extend it to some of its allies, but not all, said Commerce Secretary Wilbur Ross in an interview in Washington on late Saturday, April 28, 2018. However, the names of the countries that would be spared from the tariffs have not been declared yet by the Commerce Secretary.

Ross in the interview said, further announcement will be made just before the May 1 deadline for the duties to kick in. He also said nations have been asked to accept import quotas in return for tariff-free access of the metals into the US.

As the last date of exemption validity is approaching close, it is fuelling tensions among some of the US’s strongest allies. Trump, on the other hand, has already warned to impose tariffs of more than US$150 billion on Chinese goods, if negotiations between China and US fail to yield progress.

The US government had initially exempted six of its important allies and the European Union from the tariffs until May 1, 2018, and directed US trade representative Robert Lighthizer to handle negotiations with countries seeking exemptions.

South Korea, so far, is the only nation to receive the exemption from the tariffs after reaching a deal to revise bilateral free trade agreement with the US.

The European Union has also been a strong voice against the tariffs, saying that these US tariffs in the name of national security risk make no sense.

UK Prime Minister Theresa May also discussed the impact of the tariffs on each country’s aluminium and steel industry with French President Emmanuel Macron and German Chancellor Angela Merkel, and together agreed to work with the rest of the European Union and Trump administration to secure a permanent relief.