On April 30, ahead of a midnight May 1 deadline, President Trump extended temporary relief from the steel and aluminum tariffs to three trading partners: Canada, Mexico, and the 28-member states of the European Union (EU). The decision to extend the temporary exemption window to June 1 staves off a potential trade spat with the EU. Unfortunately, it also creates greater uncertainty in steel and aluminum markets, which will likely contribute to continued steel and aluminum prices.
Of the seven trading partners shielded from the metals tariffs on March 23, South Korea is the only ally to achieve permanent exemption, having submitted to voluntary export restraints (VERs) on steel exports to the US earlier last month. The other three partners (Argentina,Australia, and Brazil) have negotiated their way off the temporary exemption list by reaching “agreements-in-principle” with the Administration. In short,the Administration has successfully driven them to the negotiating table.
AGC continues to urge the Administration to makepermanent the remaining exemptions and ultimately abandon the tariffs.
For more information, contact Collin Janich at [email protected] or (703) 837-5435.