Authored by Tyler Durden via Zerohedge

 

While much of what Trump is announcing today has already been leaked, here are the details of the import tariffs Donald Trump formally adopted on steel and aluminium imports which allow US allies to negotiate and apply for exemptions, a sign of the growing concern that the president was alienating America’s closest international partners, and that 2 of the 4 largest foreign suppliers of steel will be exempt.

 

Trump-tariff-300x222 Here Are The Full Details Of The "Negotiable" Tariffs Trump Will Enact

 

The tariffs will come into force within 15 days and are expected to draw retaliation from the EU and other steel producers and heighten fears of a descent into a trade war.

Here are the highlights from Reuters:

  • TRUMP TO ANNOUNCE ON THURSDAY IMPORT TARIFFS OF 25 PCT ON STEEL, 10 PCT ON ALUMINUM STARTING IN 15 DAYS -SENIOR ADMINISTRATION OFFICIAL
  • S. OFFICIAL SAYS CANADA AND MEXICO TO BE EXEMPTED FROM TARIFFS FOR UNDETERMINED PERIOD; CONTINUATION OF EXEMPTION DEPENDS IN PART ON PROGRESS IN NAFTA TALKS
  • TRUMP’S TARIFF PROCLAMATIONS TO INCLUDE PROVISION TO CONSIDER ‘ALTERNATIVE WAYS’ TO ADDRESS THREAT TO U.S. NATIONAL SECURITY CAUSED BY OTHER NATIONS’ STEEL, ALUMINUM EXPORTS -OFFICIAL –
  • S. TRADE REPRESENTATIVE LIGHTHIZER TO HANDLE DISCUSSIONS WITH OTHER COUNTRIES ON ALTERNATIVE REMEDIES TO ‘FLEXIBLY MODIFY’ TARIFF PROCLAMATIONS -OFFICIAL
  • MAY HAVE TO RAISE TARIFFS ON OTHER COUNTRIES IF CANADA, MEXICO EXCLUDED; CAPACITY USE TARGETS MUST BE MAINTAINED -OFFICIAL
  • TRUMP OFFICIAL DECLINED TO SPECIFY ALTERNATIVES THAT OTHER COUNTRIES COULD SEEK TO AVOID STEEL, ALUMINUM TARIFFS  

And the details, from Bloomberg:

Steel tariff to be set at 25%, aluminum at 10%

  • Beyond that, proclamations almost identical
  • To take effect in 15 days
  • Official says may have to raise tariffs modestly on everyone else if Canada, Mexico excluded long-term; adds document flexible enough to allow that

On exclusions:

  • Canada, Mexico will be specifically exempted from both tariffs initially
    • Trump has linked the exemptions to Nafta talks ongoing; exemption isn’t open-ended, official says
  • For other countries, will have ability to modify order owing to national security
    • European countries and others could be able to request exclusion

On economic impact:

  • White House official says there will be no significant downstream price effects, and thus no significant downstream job effects
    • Expectation counters multiple statements and prognostications from several companies and industry groups that use steel and aluminum, as well as lawmakers representing them, who have warned the tariffs will harm their businesses or industries
  • Only job effects White House sees are positive ones in U.S. steel, aluminum industries: official
  • Says process extremely, carefully well vetted

In short, tariffs but with notable exemptions, which begs the question: why did Gary Cohn quit again?

 


The risk of loss in the trading of stocks, options, futures, foreign exchanges, foreign equities, and bonds can be substantial and is not suitable for all investors. Trading on margin or the use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Supporting documentation is available upon request. Trading futures, options on futures, and foreign exchanges involves substantial risk of loss and is not suitable for all investors. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.