USA imposes steep tariffs on steel and aluminium from the European Union, Canada and Mexico

President Trump is imposing steep tariffs on steel and aluminum from three of America’s biggest trading partners — Canada, Mexico and the European Union.

The trade penalties, 25% on imported steel and 10% on imported aluminium, take effect at midnight, Commerce Secretary Wilbur Ross told reporters Thursday.

The duties of 25 per cent on steel and 10 per cent on aluminium, which Washington claims are necessary on national security grounds, were first announced earlier this year as part of a crackdown by the US on China and its flooding of cheap metals into global markets.

The US initially granted exemptions to allies including the EU, Canada and Mexico and extended them until June 1 to give time for negotiations aimed at securing broader trade concessions such as a lowering of EU tariffs on cars. But the Trump administration said Thursday it had lost patience and would proceed with the tariffs.

The White House gave the three a 30-day reprieve in order to negotiate deals with the Trump administration to avoid the taxes. At the time of the reprieve Brussels said as a “longstanding partner and friend of the US” it would not ” negotiate under threat”.

EU chief Jean-Claude Juncker, reacting to Thursday’s announcement, said: “This is protectionism, pure and simple. “Over the past months we have continuously engaged with the US at all possible levels to jointly address the problem of overcapacity in the steel sector.

“Overcapacity remains at the heart of the problem and the EU is not the source of but on the contrary equally hurt by it.

“That is why we are determined to work towards structural solutions together with our partners. We have also consistently indicated our openness to discussing ways to improve bilateral trade relations with the US but have made it clear that the EU will not negotiate under threat.

“By targeting those who are not responsible for overcapacities, the US is playing into the hands of those who are responsible for the problem.

“The US now leaves us with no choice but to proceed with a WTO dispute settlement case and with the imposition of additional duties on a number of imports from the US. We will defend the union’s interests, in full compliance with international trade law.”

Cecilia Malmström, the EU’s trade commissioner, said the bloc’s response would be “proportionate and in accordance with WTO rules”.

Manfred Weber, an ally of German Chancellor Angela Merkel, said on Twitter: “We will have no choice but to defend European industry, jobs and interests. We will not accept this highly regrettable decision without reacting.”

This dispatch on reports on Financial Times, Euronews and CNN