US delays decision on steel and aluminium tariffs for EU

WASHINGTON (AP) — The U.S. Government will take another 30 days to decide whether to impose tariffs on imports of steel and aluminium from the European Union, Canada, and Mexico, extending a period of uncertainty for businesses in those regions.

The delay helps the U.S. avoid a potential trade war with allies as it prepares for tense trade talks in China this week.

But the EU slammed the decision as bad for business that “prolongs market uncertainty, which is already affecting business decisions.”

“As a longstanding partner and friend of the U.S., we will not negotiate under threat,” the EU said in a statement Tuesday.

The Trump administration said Monday it had reached an agreement with South Korea on steel imports following discussions on a revised trade agreement.

And the administration said it had also reached agreements in principle with Argentina, Australia, and Brazil on steel and aluminium that will be finalised shortly.

“In all of these negotiations, the administration is focused on quotas that will restrain imports, prevent transshipment and protect the national security,” the White House said.

Facing a self-imposed deadline, President Donald Trump was considering whether to permanently exempt the EU and Mexico, Canada, Australia, Argentina and Brazil from tariffs of 25 percent on imported steel and 10 percent on imported aluminium that his administration imposed in March.

The White House had given itself until the end of Monday to decide whether to extend the exemptions.

The EU has taken a tough stance, raising the prospect of a trade war if the U.S. does not back down.

It has a list of retaliatory tariffs worth about $3.5 billion on imports from the U.S. that it will activate if the EU loses its exemption.

Germany said it continues to expect a permanent exemption.

The EU’s largest steel exporter to the U.S., it accounted for about 5 percent of U.S. steel imports last year.

“Neither the EU nor the U.S. can have an interest in an escalation of their trade tensions,” a spokeswoman for Chancellor Angela Merkel said Tuesday in a statement.

European financial officials have cited the trade tensions created by the U.S. tariffs proposal as a risk to the economy.

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