Although South Korea will not have to pay the 25 percent tariffs on steel or the 10 percent tariffs on aluminum, it still is being forced to pay antidumping duties of 41.1 percent, as levied by the U.S. Department of Commerce on March 26. The most probable scenario has the US imposing $50 billion tariffs with promised Chinese retaliation, according to the study.
The decision on imposing US tariffs on steel and aluminum from key countries - expected to come May 1, less than a week before NPE2018 - has been delayed another month by President Donald Trump.
Australia has "confirmation from the president of the United States that Australia will be exempt from its steel and aluminium tariffs", stated the nation's Prime Minister, Malcolm Turnbull, the Guardian reported.
According to the department the exempted countries accounted for 58% of steel imports and 49% of aluminium imports to the U.S. in 2017.
The Commission said that overcapacity in the steel and aluminium sectors does not originate in the European Union, adding, "On the contrary, the European Union has over the past months engaged at all possible levels with the U.S. and other partners to find a solution to this issue".
Metals markets were steady on Tuesday and aluminum prices were little changed. "It's a businessman's approach, where you make the biggest threat possible, and then use that as a starting point to negotiate". The EU has stressed that for other products, such as trucks, the United States has a higher tariff.
Since U.S. President Donald Trump announced the planned tariff-hike in early March, the European Union has been fighting for a permanent exemption.
On June 1, the tariffs are set to go into full effect for any country without a special agreement with the U.S.
Godelieve Quisthoudt-Rowohl, the EPP group spokesperson on global trade, cautioned, "The US is giving us a little break but the sword of Damocles is still present in trade relations with the EU".
The European Commission said in a statement Tuesday: "The U.S. decision prolongs market uncertainty, which is already affecting business decisions". It added that the tariffs, which are meant to protect USA industry, can not be justified by national security concerns.
The U.S. Environmental Protection Agency has handed out a financial hardship waiver for biofuels to an oil refinery owned by Carl Icahn, former advisor to President Donald Trump.
The tariffs, which have caused tensions between the United States and a number of its trading partners have also resulted in a number of challenges being brought before the World Trade Organization. Trump says that the trade imbalances have led to the closure of numerous US factories and the loss of American jobs.