US Getting Ready To Introduce Tariffs On Steel And Aluminum Imports From EU

Forex News

The US will impose tariffs on steel and aluminum imports from the European Union, after talks regarding an alternative remedy failed to produce an alternative deal. According to some sources, the decision would be announced before a Friday expiration deadline for exemptions to the planned tariffs.

The tariffs are a culmination of a dramatic three months since US President Donald Trump announced a 25% steel tariff and 10% aluminum tariff. 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.

The EU will almost certainly respond with their own tariffs, pushing the US and Europe closer to a trade war. The European Commission, which coordinates trade policy for the 28 EU members, has said the EU will set duties on 2.8 billion euros ($3.4 billion) of US exports, including peanut butter and denim jeans, if its metals exports to the United States worth 6.4 billion euros ($7.5 billion) are subject to tariffs.

Earlier, French President Emmanuel Macron, German Chancellor Angela Merkel and UK Prime Minister Theresa May said that the countries should be ready in the event the US tariffs went into effect.