EU, Japan push for Trump tariff exemptions

The EU and Japan are pushing for exemptions from the tariffs on steel and aluminium set by US President Donald Trump and say negotiation will need to continue.

The EU's Cecilia Malmstroem, Japanese Minister for Economy, Trade and Industry Hiroshige Seko, right, and US Trade Representative Robert Lighthizer.

The EU's Cecilia Malmstroem, Japanese Minister for Economy, Trade and Industry Hiroshige Seko, right, and US Trade Representative Robert Lighthizer. Source: AAP

The European Union and Japan have urged the US to grant them exemptions from metal import tariffs, with Tokyo calling for "calm-headed behaviour" in a dispute that threatens to spiral into a trade war.

US President Donald Trump set import tariffs on Thursday of 25 per cent on steel and 10 per cent on aluminium, to come into force in 15 days. But he exempted Canada and Mexico and held out the possibility of excluding other allies.

He also indicated he would exempt Australia in an exchange with Prime Minister Malcolm Turnbull on Saturday.

After meetings with US trade envoy Robert Lighthizer in Brussels, EU and Japanese trade officials said negotiations would need to continue.

Europe's trade chief Cecilia Malmstrom described talks with Lighthizer as "frank" and said they had not brought clarity on the exemption procedure. Talks would continue next week.

"As a close security and trade partner of the US, the EU must be excluded from the announced measures," she tweeted after bilateral and trilateral meetings.

Japanese Trade Minister Hiroshige Seko said he had expressed Japanese concern to Lighthizer and warned of major market disruption.

"We call for calm-headed behaviour," he told reporters.

Seko did not go into what conditions might allow Japan to evade tariffs and asked if Lighthizer had brought up the US trade deficit with Japan, Seko said no.

"He only explained the schedule and the procedures," he said.

Any Japanese response, he said, would be in line with World Trade Organisation rules: "If there is a violation, then we will seek consultations," Seko said. "We will look at the impact on Japanese businesses and make a final decision."

The European Union and Japan, the United States' top economic and military ally in Asia, also reiterated that their exports were not a threat to US national security, rejecting Trump's justification for imposing the tariffs.

Lighthizer did not make any immediate comment after the meetings.

The three parties did agree on joint steps to tackle global steel overcapacity and distorted market practices, including stronger rules on subsidies and more sharing of information about market abuse.


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