Trump Says Australia to Secure Exemption From US Tariffs

Cheryl Sanders
March 13, 2018

Japan and Australia are among others asking to be exempt from the proposed import duties of 25 per cent on steel and 10 per cent of aluminum.

The NAFTA is a deal signed by Canada, Mexico, and the US, creating a trilateral trade bloc in North America.

Meanwhile, the European Union is filing a complaint with the World Trade Organization, arguing that the obscure, national security-related trade law Trump used to justify the tariff violates WTO rules.

Asked to respond to Trump's accusations that the EU is imposing barriers to USA automakers, Malmstrom said that "it's hard to argue on Twitter over these issues, but the European Union is a very open market". Big deficit. If not, we tax cars etc.

Along with a huge range of steel products, the EU's hit list of flagship American products lined up for counter measures includes peanut butter, bourbon whiskey and denim jeans.


European leaders believe they should be exempt from the tariffs and have threatened retaliation if the plan goes ahead.

The decision to slap hefty tariffs on imports of steel and aluminum, which the White House made formal on Thursday, has roiled global markets, angered longtime trading partners and prompted threats from the president's own party to stop the tariffs through legislation.

Trump and his trade officials have signalled in the past they are looking for more access to Canada's dairy market within a renegotiated NAFTA deal.

Chantale Gagnon says that while many in the industry breathed a sigh of relief when Canada and Mexico were temporarily exempted from the tariffs, they remain anxious that the measure could be reversed.

The EU exports around five billion euros ($4 billion) worth of steel and a billion euros worth of aluminum to the United States each year, and the European Commission, the bloc's executive arm, estimates Trump's tariffs could cost some 2.8 billion euros.


"Tariffs threaten to strangle the global golden goose", said Mark Zandi, chief economist at Moody's Analytics. It was still hoping for clearer indications about the exemption process.

Canada is the United States' largest provider of steel and aluminum, with about 85 per cent of Canadian exports being directed to that country.

"The exemption represented a positive step in the right direction but we still have a lot more work to do", Trudeau told the room full of aluminum workers.

NAFTA talks started seven months ago and the U.S.is starting to get antsy about getting a deal.

Data last week showed that the US trade deficit had jumped to an over nine-year high in January, with the country's shortfall with China widening sharply.


"The Department for Business Energy and Industrial Strategy will be assisting United Kingdom industry working with U.S. customers to build their cases for exemptions", Fox said.

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