Trump has relented somewhat on his steel and aluminum tariffs, exempting the EU and four allies from the tariffs altogether:
POLITICO – The Trump administration said Thursday it would exempt the European Union and four other allies — Australia, Argentina, Brazil and South Korea — from steel and aluminum tariffs that take effect Friday.
President Donald Trump “has decided to pause the imposition of the tariffs with respect to those countries,” U.S. Trade Representative Robert Lighthizer told lawmakers at a Senate Finance Committee hearing.
Trump’s announcement of the sweeping tariffs earlier this month unnerved and infuriated long-standing allies, many of whom had threatened harsh retaliatory actions against U.S. products. The president initially announced that he would exempt Canada and Mexico from the 25 percent tariff on steel imports and a 10 percent duty on aluminum. But while he previously hinted that other close allies might get a pass, he offered no criteria for how those decisions would be made.
Lighthizer, however, told senators on Thursday that Trump agreed, “based on a certain set of criteria, that some countries should get out,” and that those are the countries the U.S. has been negotiating with.
The U.S. imports the majority of its steel from Canada, Brazil, South Korea and Mexico, but all told it gets steel and aluminum from roughly 50 countries.
“By our calculation that means that two-thirds of steel and 54 percent of aluminum imports will not be affected by the tariffs,” said Joshua Bolten, president and CEO of the Business Roundtable.
“Even what’s left remains a mistake, but it’s encouraging that it appears the administration has listened to businesses and consumer communities and representatives on the Hill who have expressed concerns. It’s a still a big mistake, but it’s a smaller mistake than it was two weeks ago.“
It’s good news to see Trump changing his mind at least some degree. But that said, there are still almost 50 other countries that will be affected by the tariffs, and that’s sure to have an effect on prices.