Heated Trump tariff dispute reaches tipping point
The dispute over proposed steel and aluminum tariffs had its roots in there being a glut of such metals on global markets. Although China was identified as a major culprit, the US applied its levies more widely.
A presidential proclamation
Flanked by steel workers, US President Donald Trump signed a presidential proclamation on global metal tariffs in March, claiming that subsidized imports were damaging domestic producers. The measures were targeted primarily at overproduction by China but, in a tweet, Trump also described the European Union as "wonderful countries who treat the US very badly on trade."
Glut on the market
Heavy tariffs had been recommended on China, Russia and other countries by the US Commerce Department. It said that normal methods used to prevent dumping of products at low prices onto US markets had failed. Although China was singled out as particularly responsible for causing the glut in steel and aluminum, the recommendation was that other countries should also take a hit.
Escalating dispute
China said it would respond to the US plans to impose tariff by adding a 25 percent tariff on products from the US — including pork, wine, apples and ginseng. Washington hit back with a list of technological targets to be slapped with new duties, with Beijing then imposing duties on soybeans — a product for which China is US producers' main market.
South Korea makes concessions
Among the countries hit by the tariffs was South Korea, which agreed to cut steel exports to the US by 30 percent and accept extended tariffs on South Korea pickup trucks by the US. Seoul also said it would open up its car market more widely to the US, its second-largest trading partner. The Trump administration had instigated talks last year to renegotiate its KORUS trade deal with the US.
Europe on one page
The leaders of France, Britain and Germany said they would be ready to retaliate if the EU were not permanently exempted from the tariffs. According to the office of French President Emmanuel Macron, he had discussed the tariffs with Chancellor Angela Merkel and Prime Minister Theresa May. The three hoped the US wouldn't take measures "contrary to transatlantic interests," a spokesperson said.
Icons of America
Before the US introduced its temporary waiver on the tariffs for the EU, Brussels had threatened Washington with raising duties on some particularly iconic American goods. They included US bourbon, peanut butter, Harley Davidson motorcycles and blue jeans.
North American neighbors
It's expected that Canada and Mexico could receive longer tariff exemptions. That's because negotiations over the levies have become intertwined with talks about the North American Free Trade Agreement (NAFTA).