US commerce secretary Wilbur Ross has said that a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports from the EU, Canada and Mexico will go into effect at midnight, June 1. In March, the US imposed 25 percent duty on steel imports, while granting exemptions to the EU and some other countries until May 1, before later extending the deadline until June 1.

Canada, Mexico, and the European Union have already vowed to retaliate against products they import from the US.

EU Commissioner for Trade Cecilia Malmström commented on the decision as well, stating, “Today is a bad day for world trade. We did everything to avoid this outcome. Over the last couple of months I have spoken at numerous occasions with the US Secretary of Commerce. I have argued for the EU and the US to engage in a positive transatlantic trade agenda, and for the EU to be fully, permanently and unconditionally exempted from these tariffs. This is also what EU leaders have asked for. Throughout these talks, the US has sought to use the threat of trade restrictions as leverage to obtain concessions from the EU. This is not the way we do business, and certainly not between longstanding partners, friends and allies. Now that we have clarity, the EU’s response will be proportionate and in accordance with WTO rules. We will now trigger a dispute settlement case at the WTO, since these US measures clearly go against agreed international rules. We will also impose rebalancing measures and take any necessary steps to protect the EU market from trade diversion caused by these US restrictions.”

Meanwhile, NAFTA partners were also reportedly surprised by the announcement given the ongoing status of renegotiating the trade agreement. Mexico responded to the news by announcing retaliatory tariffs on products including pork belly, apples, grapes, blueberries and flat steel.

Meanwhile, South Korea, Argentina, Brazil and Australia have been given import quotas in the Section 232 investigation.