Trump delays tariff exemption decision

The White House announced late Monday it would delay for another 30 days a decision on permanent exemptions to steel and aluminum tariffs announced in March. The delay gives U.S. officials some wiggle room ahead of tense trade talks with China this week. Leaders of the European Union, Mexico, and Canada pushed for the exemptions to avoid a trade war among allies. “Neither the EU nor the U.S. can have an interest in an escalation of their trade tensions,” a spokeswoman for German Chancellor Angela Merkel said Tuesday. The White House said Monday it has reached an agreement with South Korea on steel imports and has agreements in principle with Argentina, Australia, and Brazil on steel and aluminum imports. But EU leaders suggested they don’t plan to negotiate on anything but a permanent exemption to the import taxes: “As a longstanding partner and friend of the U.S., we will not negotiate under threat.” The EU has a list of retaliatory tariffs worth about $3.5 billion it plans to impose on U.S. goods if the Trump administration refused to lift the 25 percent tax on steel and 10 percent tax on aluminum.