The other other shoe has dropped. The section 232 “national security” tariffs that went into effect on March 23, 2018 had a temporary reprieve for imports from Argentina, Australia, Brazil, Canada, Mexico, South Korea and the European Union. The delay was intended to provide time for those countries and the United States to negotiate a resolution to the security threat that the imports posed.
Time’s now run out on the negotiation period. Effective June 1, 2018, the additional duties will be emplaced on the same aluminum and steel products imported from Canada, Mexico and the EU as were imposed in March. Argentina, Australia, Brazil and South Korea have skated past the tariffs by accepting quantitative limits (quotas) on imports of their products or otherwise agreeing to market stabilization measures.
It’s on Like Donkey Kong
Not being a video gamer, I’m not really sure what that expression means, but it seems an appropriate summary of the ominous threats of imminent retaliation from Canada, the EU and Mexico.
Time will tell whether the expanded tariffs are a clever negotiating gambit, a domestic employment expansion measure or an exploding cigar. Meanwhile, importers from Canada, the EU and Mexico of products now subject to the higher duties should evaluate whether the short-supply exclusion process may provide some relief.
At least someone’s enjoying this.
