In a move that is sure to raise worries of a trade war with American allies, President Donald Trump’s administration announced this morning it’s moving forward with previously-announced tariffs on steel and aluminum imports from the European Union, Canada and Mexico.
Commerce Secretary Wilbur Ross says there will be a 25% tariff on imported steel and a 10% tariff on imported aluminum.
Trump announced the tariffs in March but the U.S. granted exemptions to the E.U., Canada, Mexico and other U.S. allies.
Ross says talks with Canada and Mexico over the North American Free Trade Agreement are “taking longer than we had hoped.” He says negotiations with Europe have “made some progress” but not enough to merit an exemption. Ross says he plans to travel to China on Friday for trade talks between the world’s two biggest economies.
The decision could provoke retaliatory penalties and exacerbate trans-Atlantic and North American trade tensions. European officials had braced for the tariffs and the EU has threatened to retaliate against U.S. orange juice, peanut butter and other goods in return. In terms of the NAFTA talks, the tariffs could hinder the negotiations among the North American neighbors.
The Associated Press is updating the story as it unfolds this morning.
