The United States imports import duties on aluminium and steel imports. U.S. President Donald Trump signed proclamations in White House. As announced, customs duty is to be 25 percent on steel and ten percent on aluminium. The levy is based on fact that se goods are important for jobs in defence industry to ensure national security. US-wide only five aluminium smelters existed, only two of which were fully utilized, government justified step. 90 percent of aluminum would be imported.

However, a clause is intended to make it possible for all countries to achieve relief on basis of individual case negotiations. However, y would have to prove that by "alternative means" y could compensate for negative impact ir steel deliveries would have on national security in United States. The negotiations will lead to US side of Trade Representative Robert Lighthizer.

Only neighbours Mexico and Canada will be excluded. The duties shall enter into force within 15 days. "We will be very fair, we will be very flexible, but we will protect American workers", as he announced in campaign, Trump said. He will have right to increase or decrease duty. Canada and Mexico remain exempt to allow Trump to increase pressure in negotiations on NAFTA free Trade agreement. Negotiations are expected to continue at beginning of April.

Trump had also threatened EU with inches on cars. The EU had already agreed on Wednesday to counter US products in return for Trump's approach to customs, especially whiskey.

No exceptions for Germany

Even on day before proclamation, 107 members of Trump's own Republican Party had turned against measures and expressed ir "deep concern" in an open letter to president. The president of US Chamber of Commerce, Tom Donhohue, also warned of possible economic consequences of customs duties that could lead to a global trade war. This scenario would jeopardize what Republican tax cuts and dismantling of regulations would have brought to economy, said Donohue.

For exports of German economy, proclamation does not foresee any exceptions at first. Trump highlighted Germany as an example of countries where US has been "hugely exploited" over years in trade and defence. The US president once again referred to his view of low German defence spending. "If you look at NATO, where Germany pays one percent, and we pay 4.2 percent of a much larger gross domestic product, that's not fair," Trump said.

There has been a long dispute over defence spending among NATO partners. Trump demands that all allies spend at least two percent of gross domestic product (GDP) per year on defence at latest by 2024. In federal government, however, NATO's two-percent target is interpreted differently. It says that it is all about developing in direction of two percent. In current year, Germany will spend an estimated 1.24 percent of GDP on defence.

Date Of Update: 09 March 2018, 12:03