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Mon April 2, 2018

On March 22, President Trump suspended the tariffs on steel and aluminum imports from certain countries until May 1, 2018. The countries temporarily exempted from the tariffs are Argentina, Australia, Brazil, Canada, the European Union (EU) member countries, Mexico and South Korea. These countries and the EU are in the process of separately negotiating with the Trump administration on permanent exclusions from the tariffs. Canada and Mexico have been exempted temporarily during the ongoing renegotiation of the North American Free Trade Agreement (NAFTA).

Since the March 22 announcement, steel tariffs from South Korea have been permanently excluded, effective May 1, because of an agreement between the U.S. and South Korea on the renegotiation of the Korea-United States Free Trade Agreement (KORUS). With the Korean tariff exclusion, imported steel products into the U.S. will be subject to a product-specific quota of about 2.68 million tons or 70 percent of the average annual import volume of those products during 2015 to 2017.

The U.S. is likely to pursue similar quota agreements with other countries seeking tariff exclusions. The president will determine by May 1 which of the other temporarily countries will be permanently excluded from the tariffs.