US extends decision on metals tariffs for Canada, EU and Mexico by 30 days

The Trump administration on Monday (local time) announced that it has extended a decision on implementing steel and aluminum tariffs on the European Union (EU), Canada and Mexico.

The decision has been delayed for another 30 days. The 25 per cent tariffs on steel and 10 per cent on aluminum were set to go into effect on Tuesday, reported the New York Times.

Negotiations will continue for the next 30 days with the 28-member bloc, as well as Canada and Mexico. The White House said this would be the final period to reach a deal with the key trading partners.

Those extensions will affect the EU, Canada and Mexico.

The administration has also reached agreements in principle on tariffs with Australia, Argentina and Brazil and they will also receive a 30-day extension so details can be finalized.

The US had been seeking concessions from these countries in exchange for not permitting the tariffs to go into effect.

Trump sets tariff on steel, aluminium imports, provokes global trade war

US President Donald Trump on Friday signed two proclamations that impose 25 per cent tariff on imported steel and 10 per cent on aluminium, a move that is likely to start a global trade war. The contentious tariffs come into effect in 15 days.

Though primarily targeted at the massive steel and aluminium dumping by China, only two countries Canada and Mexico have been exempted from the new import tariff, that too till the time the North America Free Trade Agreement (NAFTA) negotiations are complete.

Other countries would have to negotiate with US Trade Representatives (USTR) if they want exemptions from the steel and aluminium import tariff, Trump said as he vowed to slap "reciprocal tariffs" on countries like China and India if they do not match America's tariff.