President Trump plans to impose steel, aluminum tariffs on the European Union


'Tariffs on steel and aluminum imports to the US can help local producers of the metals by making foreign products more expensive.

The countries had a June 1 deadline to reach a satisfactory outcome.

The Trump administration launched a national security investigation last week into auto and truck imports, using the same 1962 law that he has applied to curb incoming steel and aluminium. And last week, he ordered an investigation into auto imports to the United States that could lead to 25-per-cent tariffs on cars and trucks, which would disproportionately hit Canada; about 80 per cent of Canadian-made vehicles are for the USA market.

The US is to impose tariffs on steel and aluminium imports from the European Union, Mexico and Canada.

The tariffs are likely to go into effect on the European Union with an announcement before Friday's deadline, according to two people familiar with the discussions. They are expected to lead to retaliation from European nations. Check back for updates.

Canada and Mexico have proposed NAFTA deals over the past month, said sources with knowledge of the closed-door talks - offering to agree to USA demands on content rules in the auto sector if the Trump administration drops its other proposals.

The trading partners have all warned the USA that they will impose retaliatory tariffs on US exports if the US goes through with the steel and aluminum tariffs.

Ross said the tariffs are based on national security concerns, which he said was an all encompassing category.

U.S. Commerce Secretary Wilbur Ross, a member of the U.S. trade delegation to China, returns to a hotel in Beijing, China May 3, 2018.

French Finance Minister Bruno Le Maire had said the tariffs would be "unjustified and dangerous".

Not even the US's closest allies can avoid getting caught in President Donald Trump's escalating trade battles.

Ross told reporters that talks with Canada and Mexico over revising the North American Free Trade Agreement (NAFTA) were "taking longer than we had hoped". "You saw his reaction when China chose to retaliate".

The European Union has already notified the World Trade Organization of plans to levy duties on $7.1 billion worth of US exports in response, with the aim of collecting $1.6 billion in tariff revenue.

Besides the USA steel and aluminum tariffs, the Trump administration is also investigating possible limits on foreign cars in the name of national security.

Trump's tariffs come amid a global glut in steel and aluminum which experts blame on over-production in China.

Beyond semantics, Alden said that the decision to impose tariffs will cause major economic disruptions across Europe and North America.