Trump Trade Team Working to Narrow Scope of Metals Tariffs

Article content(Bloomberg) — The Trump administration is working to narrow its broad tariffs on steel and aluminum products that companies find difficult to calculate and the European Union wants reined in as part of its pending trade deal with the US, a person familiar with the matter said. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe US Trade Representative’s Office is scrambling to resolve complications spawned last year by the Commerce Department’s efforts to rush out President Donald Trump’s tariff agenda, the person said.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe White House has communicated to companies that adjustments are in the works, but details and timing remain unclear, the person said. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe rollback plans were reported earlier by the Financial Times. Aluminum fell in London following the report.Article contentSpokespeople for USTR and Commerce didn’t immediately respond to requests for comment sent outside of business hours in Washington.Article content50% LeviesArticle contentTrump last year imposed a 50% levy on foreign steel and aluminum in a measure aimed at Chinese overcapacity. The step wound up hitting other major trading partners hard, including Canada, the EU, Mexico and South Korea.Article contentLater added to the list were so-called derivative products that contained the metals, creating an arduous task for companies to identify the percentage of the materials in goods they sourced from overseas. Article contentUSTR Jamieson Greer acknowledged two months ago that “there’s some complexity” with the derivatives tariffs and that he’s heard from “a lot of folks.” Article contentHe said he discussed the difficulties with Customs and Border Protection and that he was “very open” to feedback.Article contentArticle contentCustoms ‘Challenges’Article content“We’re committed to making it as smooth as possible,” Greer said during an Atlantic Council forum Dec. 10. “Naturally, when you are moving trade policy that’s been more or less the same for 70 years to a new outcome, and you’re changing the tariff regimes, there’s going to be challenges in making it operational.”Article contentTrump’s taxes on US imports have also come under increased scrutiny this week in Congress and in separate reports by the Congressional Budget Office and the Federal Reserve Bank of New York — both of which said American consumers and businesses are shouldering most of the costs of his tariffs. That runs counter to his repeated assertions that they’re paid by foreign exporters. Article contentEnding or curtailing the derivative tariffs would be a positive step for the US-EU trade accord. A framework for the deal was negotiated last year but remains not fully implemented.Article contentThe EU still faces a 50% US duty on steel and aluminum exports as well as on many other derivative products. Washington revises the list of derivative products that are subject to the higher tariff rate several times a year.Article contentThe EU is particularly concerned that the breadth of goods hit by the 50% metals rate — surpassing hundreds of items — as well as potential new, higher levies on different industries will dilute the EU-US trade deal and the agreed 15% tariff ceiling, Bloomberg has previously reported.Article content(Adds market move in fourth paragraph, USTR prior comments in eighth)Article contentTrending As U.S. companies return to Venezuela's oilfields — one Canadian driller has a head start Oil & Gas Ontario issues first permit that opens up old mine tailings for exploration Mining CRA charged taxpayer instalment interest before he received all his GIC income Taxes As Canadian bond yields fall, watch for fixed rates to follow Mortgage Rates Gold sinks in shock selloff as traders cover stock-rout losses Commodities Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. As U.S. companies return to Venezuela's oilfields — one Canadian driller has a head start Oil & Gas Ontario issues first permit that opens up old mine tailings for exploration Mining CRA charged taxpayer instalment interest before he received all his GIC income Taxes As Canadian bond yields fall, watch for fixed rates to follow Mortgage Rates Gold sinks in shock selloff as traders cover stock-rout losses Commodities