US President Donald Trump doubled tariffs on imported steel and aluminum products from 25% to 50%, stating that it was "very difficult to reach an agreement" with his Chinese counterpart, Xi Jinping, ahead of negotiations with several US trading partners in Paris on Wednesday.
The decree doubling the tariffs was published Tuesday and took effect after midnight Washington time (04:01 GMT Wednesday).
The US president justified his decision by saying, "We want to ensure that (the imports) do not threaten national security."
The text of the decree states, "While the tariffs imposed to date have provided essential support to prices in the US market, they have not enabled these industries to increase and maintain their capacity utilization at a level sufficient to ensure their sustainability, nor to meet national defense requirements."
The United Kingdom was exempted from this new increase, leaving the tariff rate at 25%. This was intended to allow London and Washington time to complete their negotiations and bring into effect a trade agreement announced last month that is expected to exempt the British steel sector from tariffs.
The British government expressed its "satisfaction" and confirmed that it will "continue to work" with the US administration to ensure the agreement enters into force, according to a statement received by Agence France-Presse.
UK Steel, the union representing the British steel industry, welcomed the suspension of the tariff increase on its products exported to the United States, but called on London and Washington to "translate the May agreement into reality as soon as possible."
The steel and aluminum sectors were the first to be targeted by the tariffs imposed by Donald Trump, with additional 25% tariffs effective March 12 to encourage investment in the United States.
These tariffs were also applied to the auto industry before being expanded to include pharmaceuticals and semiconductors, the only ones not subject to a recent court ruling targeting indiscriminate tariffs.
The tariffs were increased as White House Trade Representative Jameson Greer was scheduled to meet with European Trade Commissioner Maros Sefcovic on the sidelines of the OECD meeting, which concludes Wednesday.
These discussions are tense after Trump threatened the European Union with 50% tariffs on European products exported to the United States, accusing the bloc of failing to negotiate in good faith.
Tensions are also rising as the 90-day suspension of "reciprocal" US tariffs approaches its July 9 deadline.
White House spokeswoman Caroline Leavitt confirmed on Tuesday that "the US Trade Representative has sent a letter to all our trading partners reminding us of the approaching deadline."
However, Europe has announced its readiness to retaliate if tariffs targeting it specifically are increased. On the sidelines of the OECD meeting, Gruber announced that he would meet with his Vietnamese and Malaysian counterparts.
Trade representatives from the G7 countries (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) also met Wednesday morning at the OECD headquarters in Canada, less than two weeks before the summit of heads of state and government scheduled for June 15-17 in the Canadian Rockies.
German Economy Minister Katharina Reich said Tuesday on the sidelines of the OECD meeting, "We must reach negotiated solutions as quickly as possible, because time is running out."
French Trade Minister Laurent Saint-Martin also said on the sidelines of the meeting, "We must remain calm and make sure to show that the implementation of these tariffs is not in anyone's interest, starting with the US economy."
The OECD currently expects US growth to slow sharply this year due to Trump's tariff war, recording 1.6% compared to 2.4% before the Republican president took office.
The uncertainty may continue to affect the global economy, as Trump last week accused Beijing of violating a tariff de-escalation agreement signed in mid-May in Geneva, Switzerland, threatening to reignite the trade war.
The White House confirmed on Tuesday that Trump hopes to hold a call with his Chinese counterpart, Xi Jinping, "possibly this week." However, the US president wrote on his social media network, Truth Social, on Wednesday that he "appreciates" his Chinese counterpart, Xi Jinping, but that it is "very difficult to reach an agreement" with him.
Before the tariffs were increased to 50%, Canada, the largest supplier of steel and aluminum to the United States, considered the tariffs "illegal and unjustified."
Mexican Economy Minister Marcelo Ebrard indicated that his country would request an exemption on Friday, describing the measures as "ridiculous." Eighty percent of Mexico's exports go to the United States.
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