President Donald Trump, following through on one of his most controversial campaign promises, will sign two proclamations Thursday that implement tariffs on imported steel and aluminum but exempt Canada and Mexico.
The president scheduled a ceremony at 3:30 p.m. ET in the White House’s Roosevelt Room, surrounded by workers who will benefit from the moves. The tariffs will take effect in 15 days.
The moves will slap a 25 percent levy on steel and 10 percent charge on aluminum. White House officials say the tariffs are an essential matter of domestic and economic security.
In addition to the exceptions for the two NAFTA partners, the White House will give other nations the opportunity to justify why they shouldn’t be included.
“There’s a broader provision in the orders which will allow any country with which we have a security relationship to discuss with the United States alternative ways to address the threat and impairment to national security of imports used by that country,” said a senior administration official familiar with the drafting of the tariff proclamations. The official spoke on condition of anonymity.
Determining further exceptions will depend on whether countries can convince Trump that there’s a “satisfactory alternative means” for resolving trade inequities.
“This is not a softening of our position in any way whatsoever,” the official said. “We have structured these proclamations in a way which are unequivocally designed to defend our aluminum and steel industries.”
While there is not currently a timetable, the exemptions for Canada and Mexico “are not open-ended” and will depend on whether changes are made to NAFTA that satisfy Trump, the official added. The proclamations also can be amended in other ways “to preserve our national security.”
The president began saber-rattling about tariffs during his 2016 “Make America Great Again” campaign. He frequently has complained that previous administrations negotiated trade deals that were unfair to the U.S., and he has resolved that he would revisit them.
Though the moves resonated with a chunk of Trump’s base, they’ve caused conflict both within the administration and the Republican party, which saw 107 of its House members sign a letter in opposition. Gary Cohn, director of the National Economic Council, is leaving his post amid a tariff disagreement.
Trump is using authority under Section 232 of U.S. law, which gives the president the ability to issue tariffs based on national security concerns. The administration official said the pivotal role the steel and aluminum industries play in defense munitions and economic security will easily justify the 232 citation.
Critics, though, say the argument is flimsy and will worsen economic relations globally, possibly triggering a trade war. Financial markets have been volatile since Trump indicated late last week that the tariffs were coming.
The administration is not expecting business backlash against the moves, despite many industries’ reliance on cheaper imports.
Since the announcement, U.S. Steel has announced it is reopening a plant in Illinois, while Century Aluminum officials have said the tariffs could generate 300 new jobs in Kentucky.
