Canada waits for news on U.S. steel tariffs with deadline tomorrow

Canada waits for news on U.S. steel tariffs with deadline tomorrow

Canada waits for news on U.S. steel tariffs with deadline tomorrow

The EU's top trade official Cecilia Malmstrom was slated to hold last-ditch talks with United States Secretary of Commerce Wilbur Ross yesterday but hopes for winning a permanent exemption were slim. That is especially true if Trump continues to concentrate on forcing a reduction in the U.S. trade deficit, which economists agree is not the right way to gauge a healthy trading relationship.

U.S. President Donald Trump met last week with Macron and Merkel but gave no indication of whether or not he planned to exempt the European Union, which past year exported over $7.7-billion of steel and aluminum to the U.S. market.

Merkel's statement didn't outline any specific steps the European Union might take if import tariffs are applied. China, in response, said it will impose its own tariffs on American products.

US President Donald Trump is sending a high-powered trade delegation to China later this week to hold high level discussion with the Chinese leadership on the dispute between two nations on trade and economic issues.

According to an Associated Press report on Sunday, Merkel says the three leaders "agreed that the USA ought not to take any trade measures against the European Union", which is "resolved to defend its interests within the multilateral trade framework". South Korea also won a temporary exemption, which eventually became a long-term exemption after the progression of talks on the U.S. -Korea Free Trade Agreement (KORUS). But over the weekend, Century Aluminum Co.

The key term there is "short term" - the deadline for the expiration of that exemption falls at midnight tonight. For instance, Canada and Mexico would be granted an extension because they have made progress on steel and aluminum issues in NAFTA talks, which resume late next week.

Mexican Economy Minister Ildefonso Guajardo said "a quota on steel would not be the best way to go".

The EU's draft list of U.S. imports that could be slapped by tit-for-tat tariffs amounts to €2.8 billion ($3.4 billion), a lot less than the €6.4 billion worth of steel and aluminum that the bloc exported to the U.S. in 2017.

The Commerce Department says it's already boosted staff, and wants approval from Congress to use more of its budgeted funds to help solve the problem. No decision on a request can be made until it's been reviewed and posted online for 30 days for any objections.

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