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US to impose tariffs on key allies, inviting retaliation
Steep levies on steel, aluminum start right away
A worker checked molten steel at a blast furnace in France. which will now face a 25 percent US steel tariff. (New York Times/File 2014)
By Ana Swanson
and New York Times

WASHINGTON — The Trump administration said Thursday that it would impose tariffs on metals imported from its closest allies, a move sure to provoke retaliation against businesses and consumers in the United States and to further strain diplomatic ties tested by the president’s combative approach.

Tariffs of 25 percent on steel and 10 percent on aluminum from the European Union, Canada, and Mexico, which together supply nearly half of the steel the United States imports, are to take effect at midnight Thursday, said Commerce Secretary Wilbur Ross.

Officials in Europe, Canada and Mexico responded quickly, denouncing the tariffs and warning of retaliation measures, some aimed at goods like pork, steel, blue jeans, bourbon, and cheese from the parts of the United States where Trump enjoys his strongest political support.

“These tariffs are totally unacceptable,’’ Prime Minister Justin Trudeau of Canada said in a statement. “That Canada could be considered a national security threat to the United States is inconceivable,’’ he added. “These tariffs will harm industry and workers on both sides of the Canada-US border, disrupting linked supply chains that have made North American steel and aluminum more competitive around the world.’’

The move follows months of uncertainty during which the Trump administration dangled potential exemptions to the tariffs in return for concessions on other fronts, including voluntary limits on metal shipments to the United States and reduced tariffs on goods from the United States.

In trying to create leverage in trade negotiations by keeping its trading partners guessing, the administration sowed an atmosphere of chaos among allies as well as manufacturers uncertain about the ultimate effect on their vast supply chains. On Thursday, the Trump administration said it hoped to continue to negotiate with the affected countries, creating further confusion among business owners and foreign leaders.

After the metal tariffs were first announced in March, the countries targeted on Thursday secured temporary exemptions while the administration continued to negotiate with Canada and Mexico over the North American Free Trade Agreement and with European officials over other trade-related matters.

Ross said Thursday that although talks with the Europeans had continued, there had not been enough progress to warrant either another temporary reprieve or a permanent exemption.

The tariffs are meant to fulfill Trump’s promises to defend US industry but have prompted a fierce response from allies that argue the measures violate international agreements.

European officials are preparing to impose retaliatory levies on an estimated $3 billion of US products in June. France’s foreign affairs and economy ministers and Germany’s economy minister said the two countries would coordinate their response.

Mexico announced retaliatory tariffs Thursday, targeting imports from the United States that included flat steel, lamps, pork products and prepared meat products, apples, grapes, cranberries, and cheeses — goods chosen for maximum impact in areas that have supported Trump.

Combined with similar measures being prepared by China, Russia, and Turkey, the effect of the penalties on US goods was expected to be severe.

Jean-Claude Juncker, president of the European Commission, called the US tariffs “protectionism, pure and simple.’’ He added that the United States had left Europe no choice but to proceed with a case at the World Trade Organization and with its own tariffs on US products.

Some US companies commended the move. Century Aluminum said the action “protects thousands of American aluminum workers and puts US national security first.’’

But many other businesses have objected, including construction companies and manufacturers that use steel and aluminum in other products.

Heidi Brock, president of the Aluminum Association, said the group was “disappointed’’ and the tariffs would do little to address the larger issue of overcapacity in China “while potentially alienating allies and disrupting supply chains that more than 97 percent of US aluminum industry jobs rely upon.’’

Brian Kuehl, head of Farmers for Free Trade, said the US announcement “opens the floodgates to billions in new tariffs on American agriculture’’ from Canada, Mexico, China, India, and Europe.

Senator Ben Sasse, Republican of Nebraska, called the tariffs “dumb’’ — “Europe, Canada, and Mexico are not China, and you don’t treat allies the same way you treat opponents,’’ he said.

The tariffs are being imposed under a measure related to national security. The Trump administration says imports have weakened the country’s industrial base, and, by extension, its ability to produce weapons and tanks. The European Union and Canada object, citing their close alliances and defense agreements with the United States.