Here Are The Full Details Of The "Negotiable" Tariffs Trump Will Enact

While much of what Trump is announcing today has already been leaked, here are the details of the import tariffs Donald Trump formally adopted on steel and aluminium imports which allow US allies to negotiate and apply for exemptions, a sign of the growing concern that the president was alienating America’s closest international partners, and that 2 of the 4 largest foreign suppliers of steel will be exempt.

The tariffs will come into force within 15 days and are expected to draw retaliation from the EU and other steel producers and heighten fears of a descent into a trade war.

Here are the highlights from Reuters:

  • TRUMP TO ANNOUNCE ON THURSDAY IMPORT TARIFFS OF 25 PCT ON STEEL, 10 PCT ON ALUMINUM STARTING IN 15 DAYS -SENIOR ADMINISTRATION OFFICIAL
  • U.S. OFFICIAL SAYS CANADA AND MEXICO TO BE EXEMPTED FROM TARIFFS FOR UNDETERMINED PERIOD; CONTINUATION OF EXEMPTION DEPENDS IN PART ON PROGRESS IN NAFTA TALKS
  • TRUMP'S TARIFF PROCLAMATIONS TO INCLUDE PROVISION TO CONSIDER 'ALTERNATIVE WAYS' TO ADDRESS THREAT TO U.S. NATIONAL SECURITY CAUSED BY OTHER NATIONS' STEEL, ALUMINUM EXPORTS -OFFICIAL -
  • U.S. TRADE REPRESENTATIVE LIGHTHIZER TO HANDLE DISCUSSIONS WITH OTHER COUNTRIES ON ALTERNATIVE REMEDIES TO 'FLEXIBLY MODIFY' TARIFF PROCLAMATIONS -OFFICIAL
  • MAY HAVE TO RAISE TARIFFS ON OTHER COUNTRIES IF CANADA, MEXICO EXCLUDED; CAPACITY USE TARGETS MUST BE MAINTAINED -OFFICIAL
  • TRUMP OFFICIAL DECLINED TO SPECIFY ALTERNATIVES THAT OTHER COUNTRIES COULD SEEK TO AVOID STEEL, ALUMINUM TARIFFS  

And the details, from Bloomberg:

Steel tariff to be set at 25%, aluminum at 10%

  • Beyond that, proclamations almost identical
  • To take effect in 15 days
  • Official says may have to raise tariffs modestly on everyone else if Canada, Mexico excluded long-term; adds document flexible enough to allow that

On exclusions:

  • Canada, Mexico will be specifically exempted from both tariffs initially
    • Trump has linked the exemptions to Nafta talks ongoing; exemption isn’t open-ended, official says
  • For other countries, will have ability to modify order owing to national security
    • European countries and others could be able to request exclusion

On economic impact:

  • White House official says there will be no significant downstream price effects, and thus no significant downstream job effects
    • Expectation counters multiple statements and prognostications from several companies and industry groups that use steel and aluminum, as well as lawmakers representing them, who have warned the tariffs will harm their businesses or industries
  • Only job effects White House sees are positive ones in U.S. steel, aluminum industries: official
  • Says process extremely, carefully well vetted

* * *

During Trump's address, the president discussed specific countries, noting that the US is open to modifying tariffs for "friendly" nations countries.

  • China - the US is negotiating but Trump says that while he has "great respect" for President Xi, he says "I don't know if anything is going to come" of talks with China.
  • Canada and Mexico - the tariffs won't apply to these countries if a Nafta deal can be made. Therefore, they won't go into effect while negotiations are still going. The AP reports that Trump is also not going to apply tariffs even if Nafta is terminated but this was less clear in his press conference remarks. We'll have to look to his actual signed order.

Meanwhile Bloomberg adds that US Trade Rep Lighthizer will lead the various negotiations:

  • TRUMP: LIGHTHIZER TO LEAD TALKS W/ COUNTRIES ON LIFTING TARIFFS
  • TRUMP SAYS OPEN TO MODIFYING TARIFFS ON INDIVIDUAL COUNTRIES

In short, tariffs but with notable exemptions, which begs the question: why did Gary Cohn quit again?

Comments

DEMIZEN Stuck on Zero Thu, 03/08/2018 - 17:10 Permalink

agricultural yields quadrupled in last decade. even Africans are getting obese. there are plenty of those who want to supply to China.

lower international trade volumes could hurt coast states in long-term, but because NAFTA members are exempt, I am not sure what these tariffs really mean, other than inflation and even lower demand.

In reply to by Stuck on Zero

TeethVillage88s EnglishMajor Thu, 03/08/2018 - 15:56 Permalink

Everyone risks getting hurt in Market up turns and down turns. Basically Farmers, Manufacturers are playing the markets. - We don't want to create bigger oligopolies, but that may be Trump plan... a plan to keep many small businesses might be a plan that needs to be backstopped

- But Globalist like bigger Oligopolies since that is like "Communism" and complete centralized Control where Elites are protected from competition... and they get richer... picture Albert Gore here... Picture Pelozi here... picture trading stocks with insider info while member of congress here...

- Nationalism & Protectionism are the only hope for National Security... national capability to produce the things that Armies need for homeland security

- National Stock Piles, and National Reserves of Metals, Petroleum, Cotton, Commodities, Rubber... and factories to produce our needs for armies... is kind of the whole point of national security

In reply to by EnglishMajor

MEFOBILLS TeethVillage88s Thu, 03/08/2018 - 18:34 Permalink

That's right.  And, it is the reason why military intelligence is on Trump's side against the shadow government.  Shadow government is CIA and FBI who have thrown in with international finance.  

International finance has hollowed out the U.S. by exporting jobs, to take wage arbitrage.  The same forces are immigrating third world people, to then take wage arbitrage on their life energy.  In meantime, a new electorate is created to vote for democrats, who are in bed with international capital.

The military has rightly figured out that long supply chains are bad for winning wars.  They also figured out that not being able to make steel or anything else, means ultimately that you lose your country.

There is an internal war going on within deep state, to put down corrupt finance shadow government.  Personally, I would go harder, especially by exposing 9-11 culprits and pedophiles, but I'm not in charge.  

In reply to by TeethVillage88s

DillyDilly Thu, 03/08/2018 - 15:41 Permalink

I'll be happy to give you details next Wednesday for a nothingburger today.

 

(so let's see ~ 'FOR A TIME' CANADA & MEXICO imports will not have tariffs, but, you know, all the steel that they export to the US is PASS THRU from China overproduction, which, coincidentally, isn't represented on the chart, as if, we're REARRY stickin it to the Chinese).

 

So basically ~ some 'middleman' somewhere, is getting rich, but it ain't me... But feel free to tell me what your bowling average is as you craft your reply, & then I'll re-consider my thesis.

 

IOW ~ the steel to make the ROBOTIC hamburger flippers is still coming from China (but maybe we'll need less Mexicans to flip the burgers, and we can re-purpose them with 'on the job training to build the wall).

DillyDilly Blankone Thu, 03/08/2018 - 16:48 Permalink

"If the U.S. has ZERO steel imports from China as the chart shows, who is this aimed at?  Brazil?  Korea?"

 

Wrong question... It has nothing to do with ANY of that...

 

CHINA is not on the chart because it 'passes thru' all it's steel exports by way of Canada & Mexico to the US... While Americans continue to get the shaft...

 

More horseshit! This is probably why (((Cohn))) resigned and (((Ross))) doesn't mind...

 

So many TRIBES ~ so little MANNA

In reply to by Blankone

Agent P Muppet Thu, 03/08/2018 - 17:11 Permalink

China isn't on the breakout chart (78% of total imports), because that only shows the Top 10 countries.  China (at about 2%) barely misses that mark, and thus falls into the Rest of the World (22%) that isn't in the breakout.  

However, as pointed out above, China floods the world with cheap steel, some of which makes its way to the US via other countries, but even if it doesn't, prices are kept artificially low because of their oversupply.  

In reply to by Muppet

silver140 Thu, 03/08/2018 - 15:42 Permalink

If both Mexico and Canada are exempted, then the tariffs are not going to have much of an effect since they are the largest trading partners. If you want factories and jobs to come back to the US, then you have to at least put big tariffs on the slave labor products from Mexico.