US steel and aluminium tariffs: exceptions and side-effects

Donald Trump's decision to impose tariffs of 25 percent on imported steel and 10 percent on aluminum stirred up a real hornet's nest, arousing a myriad of comments and reactions and prompting fears of a trade war (see: "Is it the start of a trade war? Trump to impose 25% tariffs on steel imports").

When President Trump initially announced the impending tariffs, there were no specific exceptions planned for any country. When he signed the tariffs on March 8, he exempted Canada and Mexico, linking this decision to the NAFTA negotiations and apparently the White House held out the possibility of excluding other key allies.
At a meeting in Brussels on March 10, EU Commissioner for Trade Cecilia Malmström and Minister for Economy and Industry of Japan Hiroshige Seko asked US Trade Representative Robert Lighthizer to be exonerated from Trump's measures on steel and aluminium tariffs, but no clarity has been found yet, so discussions will continue (link).
The Director General of the European non-ferrous metals association (Eurometaux) Guy Thiran stated that “even with an exemption, there would be major consequences from the redirection of aluminium flows to Europe from third countries.” That's exactly the point also for Geert Van Poelvoorde, President of Eurofer, the European Steel Association: “It is a reasonable assumption that the imports deflected by the US will seek a home in Europe. Given the potentially significant impact, the European steel industry clearly requires robust defence arrangements.”
Trump's measures are also facing an intense internal opposition. Among the opponents there are many American industries that buy steel to manufacture downstream steel products. On February 12 the American Wire Producers Association signed together with other 14 associations a letter to President Trump, warning on the negative effects that steel and aluminum tariffs would have on the more than 1 million jobs they collectively represent. The letter said: “Our member companies source the majority of their steel requirements from the domestic steel industry, but we also require continuing access to global supply chains. This is necessary as there are many types of steel products that are simply not available from domestic steel mills. Restrictions on steel imports will adversely impact national security, the economy, and the steel industry itself.”


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