Trump Backtracks on 232, Exempts More Countries

With the announcement that seven countries will be exempt from the steel tariffs that take effect tomorrow, less than one-third of U.S. steel imports will be subject to the tariffs, by some estimates. U.S. Trade Representative Robert Lighthizer said during a Senate Finance Committee hearing today that the President has decided “to pause the imposition of tariffs with respect to [the following] countries:” Canada, Mexico, the European Union, Australia, Argentina, Brazil, and South Korea.

Korea is the third largest importer of steel into the United States and an important ally in negotiating with North Korea. Korean media is reporting that the government offered concessions to the U.S. on automotive imports and exports in return for the tariff exemption. Reportedly, the U.S. will delay lowering a 25 percent tariff on Korean trucks that was to go into effect next year. In addition, Korea will consider easing controversial safety and environmental standards for U.S. auto imports.