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's trade war and the $470 billion hit to the global economy

A full-blown trade war could cost the global economy $470 billion, according to Bloomberg Economics.
The U. S. decision to slap tariffs on steel and aluminum may just be the beginning, with President Donald Trump warning of more levies and other economies promising to respond. Cecilia Malmstrom, the European Union’s trade chief, vowed on Monday to “stand up to bullies.”

In a scenario where the U. S. implements a 10 percent levy on imports and the rest of the world retaliates, analysis by Bloomberg Economics published Monday says the global economy would be 0.5 percent smaller by 2020 than it would have been without tariffs. According to economists Jamie Murray and Tom Orlik, that’s an extreme scenario, “but it’s no longer an impossible one.”

They see the move rippling through the world economy in a number of ways, starting with faster inflation that dents U. S. consumer demand, which in turn hurts other economies’ exports. Retaliation would see the inflation shock replicated in other nations, with goods substitution hitting

US should exclude EU from tariffs to defuse trade dispute: Angela Merkel

German Chancellor Angela Merkel today voiced concern over US President Donald Trump's decision to impose hefty tariffs on aluminium and steel imports, and called for talks to defuse the escalating row.
"We see with concern the tariff hikes for specific products," the leader of Europe's biggest economy said, adding that Germany backs the EU in "seeking dialogue with the United States, but also with countries that could be affected, like China."
She stressed that "no one can win in such a race to the bottom", adding that "it would be best if we could be exempted" from the tariffs.

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. 

Electrolux to put $250-mn investment on hold after Trump's tariff proposals

.

Sweden's Electrolux, Europe's largest home appliance maker, said on Friday it would delay a planned $250 million investment in Tennessee, after U. S. President Donald Trump announced tariffs on imported aluminium and steel.

On Thursday, Trump said the duties -- 25 percent on steel imports and 10 percent on aluminium -- would be formally announced next week, although White House officials later said some details still needed to be ironed out.

"We are putting it on hold. We believe that tariffs could cause a pretty significant increase in the price of steel on the U.

S. market," Electrolux spokesman Daniel Frykholm said.

Electrolux buys all the steel it uses in its U. S. products domestically.

"So this is not the possibility of tariffs directly impacting our costs, but rather the impact it could have on the market and that it could damage the overall competitiveness of our operations in the U. S.," Frykholm said.

The company is waiting to see the final details of the U. S. plans before making a final decision, he said.

Electrolux had said in January it would invest $250 million to expand and modernize its plant in Springfield, Tennessee.