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Canada, Mexico excused from U.S. tariffs, EU, Korea, and Brazil to suffer

Staff Writer |
U.S. President Donald Trump signed proclamations slapping tariffs of 25 percent on steel and 10 percent on aluminum, in effect for the rest of the world in 15 days.

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After months of frantic lobbying, diplomatic arm-twisting, and heated debates within his own administration, Trump made good on his tariff threat at the White House, surrounded by steelworkers.

Trum said only that the reprieve remains in place for now, and that NAFTA is important to economic and national security.

"Due to the unique nature of our relationship with Canada and Mexico... we're gonna hold off the tariff for those two countries," Trump said during the ceremony.

"If we don't make the deal on NAFTA, and if we terminate NAFTA ... we'll start all over again. Or we'll just do it a different way. But we'll terminate NAFTA, and that'll be it.

"But I have a feeling we're gonna make a deal on NAFTA... If we do there won't be any tariffs on Canada, and there won't be any tariffs on Mexico."

The European Union is now the biggest loser. European countries that export a lot of steel to the United States, such as Germany, will feel even more pain now.

South Korea will likely lose more than $1.1 billion per year, based on Bown’s initial model. About 91 percent of the country’s steel coming into the US already faced some sort of tariff, duty, or safeguard in the US market. Now 100 percent of its steel exports to the U.S. will be subject to a tariff.

Brazil, a major exporter of steel to the US, will also be hurt by the new tariffs. The South American nation exported 2.9 million metric tons of semi-finished steel to the US in 2017, making it the second-largest exporter after Canada.

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