Just hours before the temporary exemptions from the U.S. steel and aluminum import tariffs were set to expire, the White House has announced that it will extend the exemption for its key allies.
The U.S. also confirmed that South Korea is granted a permanent exemption from steel tariffs.
Kim Hyesung reports.
South Korea has been granted permanent steel tariff exemptions from the U.S.
This comes after U.S. President Donald Trump authorized modifications to the U.S. steel and aluminum tariff measures.
In a statement Monday local time, the White House said it has reached a final agreement with South Korea on steel exports, which were part of the amendment to the South Korea-U.S. free trade deal.
Seoul earned its permanent exemption by agreeing to quotas that will cut its steel exports by about 30 percent, based on its average annual shipments to the U.S. between 2015 and 2017.
The exception does not apply to aluminum tariffs.
The White House also said it has reached agreements in principle with Argentina, Australia and Brazil concerning the tariffs, the details of which will be finalized shortly.
The U.S. is extending negotiations with the European Union, Canada, and Mexico for 30 days, postponing the temporary exemption deadline to June 1st.
The EU has said if it loses its exemption it will retaliate with its own tariffs on U.S. goods imported to Europe.
In March, President Trump imposed a 25 percent tariff on steel imports and a 10 percent tariff on aluminum, but granted temporary exemptions to some of its key allies.
The prolonged exemptions for Canada and Mexico come as the U.S. is working to renegotiate NAFTA, the free trade agreement between the three countries.
Kim Hyesung, Arirang News.