As was largely expected ahead of Tuesday's 1201am deadline, The Wall Street Journal reports that President Trump has decided to postpone decisions about imposing steel and aluminum tariffs on the European Union and other U.S. allies until June 1.
The temporary exemptions extended to the EU, Canada, Mexico, Australia, Brazil and Argentina, which, as we noted earlier, if revoked would throw the global markets into turmoil and international supply chains into a deep well of uncertainty, as the exemptions add up to almost half of the U.S. steel imports.
The U.S. initially imposed world-wide tariffs of 25% on U.S. steel imports and 10% on aluminum in March, but it temporarily exempted several U.S. allies from the tariffs. Monday’s decisions extend that delay.
Extensions for Canada and Mexico were widely expected, but it was uncertain whether the U.S. would proceed with tariffs on Europe May 1 as scheduled.
The extension does not erase the uncertainty that will remain in the interim. It is still unknown if some countries can negotiate limited quotas, make deals on goodwill, or if all countries will be slapped with tariffs.
In addition, WSJ reports that the White House will announce Monday evening that it has finalized a deal to exempt South Korea from the tariffs, mirroring details that have been previously released by the U.S. Trade Representative’s office.
The remaining decisions on tariffs will be decided later, the official said.