According to the Wall Street Journal website reported on March 9, US President Trump signed an announcement on March 8, imposing tariffs on imported steel and aluminum, 25% on steel and 10% on aluminum, but the government will have flexibility in the tariff level and can grant exemptions to some important American allies.
According to the report, a senior government official told reporters before the announcement that Canada and Mexico will be exempted at first, but whether they will continue to be exempted will depend on the results of the ongoing renegotiation of the North American Free Trade Agreement (NAFTA) and the results of broader security relations talks between several neighboring countries.
The official did not explain the process of the allies seeking exemption, nor did he explain what factors would be considered when deciding to grant exemption or reduce tariffs. But it is likely that many American allies will seek exemption, especially the European members of NATO, Japan and South Korea.
According to Agence France-Presse reported on March 9, US President Donald Trump imposed high trade tariffs on foreign steel and aluminum products, which triggered strong protests at home and abroad, because this controversial move triggered people's concerns about the global trade war.
According to the report, this tax announcement involving billions of dollars immediately attracted protests from the European Union and Brazil, and other relevant countries are expected to take corresponding actions.
Cecilia Malmstrom, the EU Commissioner in charge of trade, insisted that the EU, as a close ally, "should be excluded" from the scope of taxation, and vowed to "seek a clearer position from Washington".
At the same time, Britain said it would "cooperate with its EU partners to study the scope of exemption proposed today", saying that "tariffs are not the right way to solve the global steel overcapacity problem".
According to the report, Brazil, a major producer, also vowed to take "all necessary measures" to "protect its own rights and interests" for the US move.
The Financial Times website reported on March 9 that this move is expected to incur retaliation from the EU and other steel producing countries, and aggravate people's concerns about the outbreak of a trade war.
On March 8, the website of Deutsche Welle Radio published the title "Is the trade war coming? The report prepared by the European Union says that the United States is the largest trading partner of the European Union. Trade between the EU and the US accounts for about one third of global trade. As Trump announced the imposition of high tariffs on imported steel and aluminum products, the trade friction between Europe and the United States quickly slipped to the edge of trade war.
Cecilia Malmstrom, EU Trade Commissioner, said after a recent meeting in Brussels: "There is no winner in the trade war. If there is no trade war-it is best to do so-then we can cooperate with American friends and other allies to solve the core problem of overcapacity. " However, she added: "If there is a trade war, we will take measures to protect jobs in Europe."
The New York Times website reported on March 7th that American trading partners have room for retaliation. Some of the largest steel exporters facing the United States are also the biggest buyers of American products. The EU says it will target bourbon, jeans and Harley-Davidson motorcycles, which are all products with American characteristics. Canada also threatened to fight back.
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