In addition to the EU, exemptions have been extended to the end of May with Canada and Mexico renegotiating the North American Free Trade Agreement (NAFTA) with the United States. In order to reduce steel and aluminum imports and narrow the trade deficit, the Trump administration has forced the other party to make concessions in trade negotiations with import restrictions. If no agreement can be reached through negotiation, high tariffs will be imposed on imported products from the above three countries and regions.

Japan, China, and Russia were originally targets of import restrictions. Regarding China, U.S. Treasury Secretary Mukuchin and others will visit China from May 3 to discuss trade issues.

The EU’s attitude is that it will take countermeasures once it becomes an object of import restrictions. The Trump administration intends to ask the EU to reduce the export of steel and aluminum products to the United States. If negotiations cannot reach an agreement by the end of May, I am afraid that it will develop into a fierce trade dispute.

The other four exempt countries are Argentina, Australia, Brazil and South Korea. South Korea has reached an agreement with the Trump administration to limit the amount of steel exports to the United States to 70% of the 2015-2017 average, in return for being completely excluded from the steel import restrictions.