Trump Imposes Steel, Aluminum Tariffs On EU, Canada And Mexico

As widely leaked over the past few days and as confirmed earlier this morning, moments ago Commerce Secretary confirmed that the Trump administration is imposing steel and aluminum tariffs on the EU, Canada and Mexico, with the tariff set to begin at midnight tonight to help protect America’s manufacturing base:

  • TRUMP TO IMPOSE STEEL, ALUMINUM TARIFFS ON CANADA, MEXICO, EU
  • U.S. COMMERCE SECRETARY ROSS SAYS EUROPEAN UNION, CANADA AND MEXICO WILL FACE STEEL AND ALUMINUM TARIFFS BEGINNING AT MIDNIGHT TONIGHT
  • ROSS SAYS EU, CANADA, MEXICO WILL PAY 25 PCT STEEL TARIFF AND 10 PCT ALUMINUM TARIFF: RTRS

Canada, Mexico and Europe were exempted from import duties of 25% on steel and 10 per cent on aluminum when they were first imposed in March, but those exemptions will expire at midnight.

Ross told a conference call with media this morning that he is looking forward to continuing negotiations. But in the case of Canada and Mexico, he said the decision was based on making progress in the ongoing North American Free Trade Agreement talks, and there is no resolution in sight. "The talks are taking longer than we had hoped."

Ross also said he’s looking forward to “continued negotiations" with Canada, Mexico and EU “because there are other issues" that need to be resolved. There’s potential “flexibility” in the future because the president has the power to increase or cut tariffs, remove them, or enact quotas, he said.

President Donald Trump has justified the metals duties by invoking a national security provision under Section 232 of a 1960s trade law.

US Steelmakers were delighted with the news, as Alcoa, the largest U.S. aluminum producer, rose over 2% to $49.60 while Nucor, the biggest US steelmaker, also rose more than 2% percent to $65.50 a share.

Meanwhile, as noted earlier, both the CAD and MXN continued selling off on the news, with the  Loonie erasing yesterday's BOC hawkish language-driven gains...

... while the Peso slumped to one-week lows...

Comments

brianshell Money_for_Nothing Thu, 05/31/2018 - 14:01 Permalink

Who benefits from off shore manufacturing?

Mostly a few top stock holders and the executives who are paid largely by stock options.

What percent of the population would that be?

Who is supposed to look out for the whole population?

From way back in time to the original colonies, corporations were only chartered at the pleasure of the governor.

Somehow, corporations, or rather, the few men that benefit, have swung the tables around where they are in charge and governors serve at their pleasure. They have even becomes "persons".

In reply to by Money_for_Nothing

Money_for_Nothing Savvy Thu, 05/31/2018 - 12:29 Permalink

Global trade is all US$. USD is being used like a credit card by China, Japan, Germany, and others. Now they are mad cause they thought it was all free. Let them use IMF SDRs. Supposedly an SDR might be backed by Gold that the IMF supposedly has. This is a farce. Trump offered them a deal and they rejected it. Historically Trump offers reasonable deals and then either walks away or offers a tougher deal if the other party rejects. Trump might sweeten a deal but the counter party has to be careful to not hit the walk point. Lessons in tactics and strategies.

In reply to by Savvy

To Hell In A H… FORCE Thu, 05/31/2018 - 10:22 Permalink

I'm praising the work of Orange Jesus, but it's not deliberate. He is wrecking the USSA faster than planned, because of shear incompetence and hubris. When the dollar tanks, so does the average USSA citizen. Your free spending days will be over and like all fucked up governments, the first spending cuts will be implemented on the poor, cheered on by many on ZH.

In reply to by FORCE

Yellow_Snow HenryHall Thu, 05/31/2018 - 10:07 Permalink

It seems that these tariffs are being utilized as political weapons rather than part of "Make America Great"...   If that is the case, this economic warfare will have dire consequences.

Unfortunately, Europe needs to play ball with 'Orange' since the alternative is Al'CIAda attacks throughout the EU again...  Once you make a deal with the Devil (Amerika), there's no going back...

In reply to by HenryHall

HenryHall JimmyJones Thu, 05/31/2018 - 11:59 Permalink

"new path" boils down to punishing your allies (EU) and rewarding your adversaries (CN & RU).

"Great Again".

 

If you actually wanted to make America great again you would:

1. Withdraw from all foreign military adventures.

2. Close 95+% of overseas military bases and bring our boys home.

3. Default on sovereign debt

4. Stop nearly all imports and become self-sufficient.

Won't happen, it would make poor Americans comfortably off and obscenely rich American merely rich.

In reply to by JimmyJones

Zerogenous_Zone HenryHall Thu, 05/31/2018 - 13:28 Permalink

decades of enjoying 'free lunches' paid for by the US taxpayers AFTER we take on the debt of rebuilding europe has left OUR workers in a rut...

 

they either deal with it...or don't...their choice...

 

i know what the majority of american workers want...fair wages and a reduced tax burden...which could be achieved with appropriate tariffs...

 

it's really not that hard to comprehend, is it?

 

and your list 'should' come AFTER we level the global trading field...

 

zerogenous_zone

In reply to by HenryHall

falconflight Juggernaut x2 Thu, 05/31/2018 - 10:58 Permalink

You're a Agitprop 'hasbara' of the first order.  What a dishonest (in intent) post.  Why should the US economy, Americans, allow Canadian subsidized lumber to drive out American companies, as it has?  You should go back to HuffPuff or Salon.  POS bar none.  But you and those of your ilk will breathlessly drone about WMT using foreign (China) product sources to drive down prices...and rub out domestic suppliers.  Again, you're not to be trusted intellectually on any issue, because you're a liar by omission and/or commission on any issue, a Progressive/Marxist/Putzinista/Mohammaden liar (Excuse my redundancy). 

In reply to by Juggernaut x2

FrankDrakman falconflight Thu, 05/31/2018 - 11:33 Permalink

Canadian lumber is NOT subsidized, you jack ass. Canada has roughly the same land mass as the US, just under 10 million sq km. But Canada has 1/10th the USA's population. Assuming you know a single goddam thing about economics - and that's a stretch, given your post - you'd know that the opportunity cost of land in Canada is significantly LESS than it is in the US.

The Government of Canada sets stumpage fees on Crown forests, which is where most of the loggers are, to achieve different goals, including sustainable forests, fewer wildfires, etc. In the US, most of the wood is logged off private woodlots, where the owners want to make a big profit, so they set fees higher. And because there are more competing uses for land in the US, the opportunity cost of putting land aside for forests is higher than it is in Canada. In economics, we call that a "competitive advantage" for Canada, not a government subsidy.

Why should the Government of Canada's prices be dictated by private landowners in a different country? Does the US set maple syrup prices according to the private Quebec cartel that produces most of the world's syrup? No? Then why should we do the same with wood?

In reply to by falconflight