Latest news with #steelAluminium
CNA
6 days ago
- Business
- CNA
Mexico threatens retaliation as US doubles metal tariffs, EU and others race to avoid further levies
WASHINGTON: Mexico has threatened to impose retaliatory tariffs after the United States doubled its import duties on steel and aluminium, deepening a global trade dispute that has disrupted markets and strained diplomatic ties. US President Donald Trump's decision to increase the levies to 50 per cent took effect at midnight on Wednesday (Jun 4), applying to all countries except the United Kingdom, which secured a temporary exemption via a preliminary trade agreement. Mexico's Economic Minister Marcelo Ebrard said the hike was 'unsustainable and unfair,' and confirmed that countermeasures were being prepared. 'We cannot accept this in silence. Our response will be firm but calibrated,' he said at a press conference in Mexico City. The Mexican Chamber of Commerce also urged immediate government action, while industry leaders warned of rising production costs and job losses in the country's manufacturing sector. EU, US cite progress in tariff talks Meanwhile, the United States and European Union reported progress during high-level trade discussions in Paris on the same day the new tariffs were enacted. EU trade negotiator Maros Sefcovic and US Trade Representative Jamieson Greer said the meeting was constructive, with technical-level talks continuing in Washington and further negotiations planned. 'What makes me optimistic is I see the progress, the discussions are now very concrete,' said Sefcovic. Greer echoed the sentiment, noting a 'willingness by the EU to work with us to find a concrete way forward to achieve reciprocal trade.' Markets react to metals hike Markets responded with volatility to the hike in tariffs, which doubled the previous 25 per cent duty rate introduced in March. Canada and Mexico, the US's largest trading partners for steel, are among those hit hardest. The new tariffs also jolt the aluminium sector, with Canada being the top exporter of the metal to the US. Prime Minister Mark Carney said Canada was engaged in 'intensive' talks to reverse the levies, which Ottawa considers illegal. Labour union Unifor called for reciprocal tariffs on US metal imports. The American Automotive Policy Council warned the measures would increase vehicle production costs and harm US competitiveness. Meanwhile, the Congressional Budget Office forecast a negative impact on US economic output. Broader fallout and 'best offer' deadline Wednesday also marked the deadline set by the White House for countries to submit proposals aimed at averting additional reciprocal tariffs expected to take effect on July 8. Only the UK has reached a provisional agreement so far, with talks continuing with other trading partners. The US has asked for concessions on both tariff rates and non-tariff barriers in exchange for exemptions. Minerals and manufacturing in flux Separately, supply chain concerns are growing over China's restrictions on rare earth exports. European automakers have reported production disruptions, while German carmaker BMW noted delays in its parts supply due to shortages of essential minerals. Global uncertainty over tariffs has already affected firms across sectors, with French spirits group Remy Cointreau slashing its long-term sales goals and German manufacturers citing reduced orders.
Times
7 days ago
- Business
- Times
Starmer handed five-week reprieve from Trump's steel tariffs
President Trump exempted British steel and aluminium exports from new 50 per cent tariffs while giving ministers five weeks to finalise details of a trade deal with the United States. In an executive order, Trump said UK exporters would be spared from the doubling of tariffs that are due to come into effect on Wednesday, but appeared to set a new deadline of next month for the deal to be finalised. The order stated that if the UK had not complied with 'relevant aspects' of the Economic Prosperity Deal signed last month, then the US 'may increase the applicable rates of duty to 50 per cent … on or after July 9'. Trump said: 'I have further determined that it is necessary and appropriate to allow for the implementation of the US-UK Economic Prosperity Deal of May 8, 2025, and to accordingly provide different treatment for imports of steel and aluminium articles, and their derivatives, from the United Kingdom.' Trump's move came after steel manufacturers warned ministers that 'highly damaging' delays to implementing the trade deal were already costing them millions of pounds in lost business. Trade from the US has dried up, they said, as American importers put orders on hold in the hope of escaping current tariff levels of 25 per cent, which is still being applied to UK exports. Senior government figures have blamed the US side for delays in getting the deal over the line, saying that negotiations on the technical aspects of the steel and aluminium quotas have been 'complicated'. Almost a month since Starmer and Trump agreed in principle to spare Britain's steel, car and aluminium industries from US tariffs, officials say they are still some way from completing the deal. The government said ministers were 'pleased that as a result of our agreement with the US, UK steel will not be subject to these additional tariffs'. It added: 'We will continue to work with the US to implement our agreement, which will see the 25 per cent US tariffs on steel removed.' However, the Conservatives have accused ministers of 'misleading the public' over the deal. Andrew Griffith, the shadow business secretary, said: 'Labour told the British public we had a deal with the US, but one month on, there is no deal in sight, meaning British businesses and workers continue to suffer because of Labour's failed negotiations. 'After snatching the winter fuel payment, lying about not increasing taxes, and misleading the public by saying the US trade deal was done, the public will rightly not trust a word Labour says.' Trump's move came after Jonathan Reynolds, the business secretary, held talks with his US counterpart, Jamieson Greer, to discuss the difficulties in finalising the agreement. However, officials admitted it could take a number of weeks to get the agreement over the line. Speaking after the meeting, a government spokesman said both sides agreed that they wanted to implement agreements 'on sectoral tariffs as soon as possible'. 'The pair agreed that businesses and consumers on both sides of the Atlantic must start to feel the benefits of the deal soon, with both sides committing to work closely to make that happen,' the official said. Under the much-vaunted trade agreement announced last month, Britain could continue to export steel, aluminium and cars to the US free of tariffs, in return for dropping tariffs on American beef and ethanol exports. However, exact quotas for different types of steel and aluminium products were not specified. There were also unanswered questions over whether steel products only partially made in the UK would be covered by the deal. Speaking to MPs before the announcement, Russell Codling, a director at Tata Steel, said the firm currently supplied about £150 million worth of steel to the US that was now being hit by tariffs. 'The 25 per cent tariff was a big shock to us and the 50 per cent tariff is really quite devastating,' he said. 'Where do we go next? What is the future for our business?' Codling added that his message to the government was to 'act as quickly as possible' to get the deal over the line. Andy Richardson, the managing director of Special Melted Products, said that his firm had suffered a 'complete cessation of orders' since tariffs came into effect. 'We are losing business rapidly,' he said. 'Even if the trade deal was fully clarified tonight, I have significant concerns for the job security of people who work in my plant and other metal producers around the UK. It needs to happen really, really quickly.' Chrysa Glystra, director of trade and economic policy at UK Steel, said: 'The delay in implementing the deal is highly damaging to UK industry.' UK Steel welcomed Trump's decision to keep tariffs at 25 per cent on imports of British steel and aluminium for now, describing it as 'a welcome pause', but said that 'uncertainty remains' over the final rate. Gareth Stace, its director general, said that Reynolds had acted swiftly, recognising that steel trade stability and security between the two nations is 'of utmost importance'. Stace said: 'Continued 25 per cent tariffs will benefit shipments already on the water that we were concerned would fall under a tax hike. However, uncertainty remains over timings and final tariff rates, and now US customers will be dubious over whether they should even risk making UK orders. 'The US and UK must urgently turn the May deal into reality to remove the tariffs completely. 'At an already crushing time for our steel industry, with global oversupply and weak demand, we must continue to work together to support sales levels in our second most important export market. 'It is also time for the UK government to take decisive action domestically on trade defence. There is plain evidence of trade diversion switching gears into the UK after the EU stepped up its trade defences, and now we must do the same. 'Imports are flooding into the UK market, depressing steel prices and taking away market share. We must not lose sight of our domestic market while battling to stabilise exports to the US.' Trump confirmed the rise in import duties for the rest of the world, arguing the 50 per cent tariffs would stop 'foreign countries that continue to offload low-priced, excess steel and aluminium in the United States market'.
