Trump Levies Steel, Aluminum Tariffs, Spares Canada and Mexico

President Donald Trump has followed through on his promise to impose punitive import tariffs on aluminum and steel of 10% and 25%, respectively.

Earlier today Trump signed a proclamation confirming his intent, which is widely opposed by economists, business groups, foreign allies and many of his fellow Republicans. The sanctions are expected to take effect about 15 days from now.

Trump says he decided on the tariffs for the sake of “defending American’s national security.” The president has wide-ranging powers to do so under a 1962 trade act that gives him the authority to control imports of goods for the sake of protecting domestic security.

Canada and Mexico will be exempted, pending the outcome of U.S. negotiations among the three countries to revamp the North American Free Trade Agreement.

The White House says the sanctions, which Trump announced last week, will include mechanisms by which U.S. companies can apply to be excluded for certain imported metals that aren’t available elsewhere. U.S. Trade Representative Robert Lighthizer also will lead negotiations with countries that seek their own exemptions.

In blunt responses to Trump’s decision, several Republican leaders offered harsh assessments about the impact of the tariffs. “Simply put, this is a tax hike on American manufacturers, workers and consumers,” declares Sen. Jeff Flake (R-Ariz.). Adds House Speaker Paul Ryan, “I disagree with this action and fear its unintended consequences.”

The European Union said earlier that it intends to respond with its own 25% tariff on various American goods. Wang Yi, China’s foreign minister, has vowed a “justified and necessary response” but adds that a trade war “has never been the right way to solve the problem.”