UNITED STATES (OBSERVATORY) – US President Donald Trump postponed until June 1 the introduction of protective duties on steel and aluminum for the European Union, Canada and Mexico.
Earlier this year, the US introduced import duties – 25% for steel and 10% for aluminum, which already operate in relation to products from China, Russia, Japan and others. Some US partners were initially exempted from duties until May 1, now this period has been extended for another month.
The White House report notes that this decision will give the United States and the European Union an additional month to agree on new terms of trade that will allow European countries to avoid duties.
In the case of Canada and Mexico, the term for exemption from duties has been extended, as Washington is negotiating with these countries to review the terms of the North American Free Trade Agreement (NAFTA or NAFTA).
The US has already reached agreement with Argentina, Brazil and Australia, which will allow the products delivered from these countries to avoid new duties, the White House said.
European steelmakers are already feeling the consequences of the actions of the American authorities. Large exporters of steel in the US – Russia, Brazil, Turkey, Egypt and China – redirected supplies to the European market in order to avoid new US barriers, and this led to a drop in prices in the EU, the Wall Street Journal reported.
The import of steel by the EU states in the first quarter of 2018 increased by 300 thousand tons compared to the same period a year earlier – up to 2.9 million tons, according to Eurofer.