Trump's steel and aluminum tariffs to go into effect on Wednesday

The U.S. is set to apply 25 percent tariffs on steel and aluminum imports as planned on Wednesday.

And ahead of the big day, there was a squabble between the U.S. and Canada over reciprocal tariffs.

Lee Seung-jae reports.

The 25-percent steel and aluminum tariff announced by U.S. President Donald Trump will go into effect on Wednesday.

According to an executive order signed by Trump last month, the 25 percent tariff will be imposed on all steel, aluminum, and derivative products imported by the U.S. at 12:01 AM.

166 derivative products,.. including bolts, nuts, and springs will be subject to tariffs starting on Wednesday, while 87 derivative items, including bumpers, suspensions, automobile parts, home appliance parts, and aircraft parts will be exempt from tariffs until further notice by the U.S. Commerce Department.

This also means that South Korea's existing free-trade quota on steel and aluminum of two-point-6-3 million tons per year, which it has with the U.S., will be scrapped, as well.

However, as the duty is applied to all countries, South Korea will not be at a disadvantage in competition with major exporters, while economists believe that Korean steel companies will be able to enter the U.S. market more actively as the export volume cap is removed.

Meanwhile,.. amid concerns of a full-out tariff war between the U.S. and Canada, the Trump administration announced Tuesday that it has decided to withdraw the additional 25-percent tariff on Canadian steel and aluminum imports.

Trump had threatened to impose an additional 25-percent, for a total 50-percent tariff on Canadian steel and aluminum imports, after Ontario threatened to impose a 25-percent surcharge for electricity imported by the U.S.

Ontario Premier Doug Ford announced that he had agreed to suspend the 25-percent surcharge on electricity, after holding talks with U.S. Commerce Secretary Howard Lutnik.

The two will hold talks again on Thursday, along with the U.S. Trade Representative to discuss renewing the U.S.-Mexico-Canada free trade act, ahead of the April 2nd reciprocal tariff deadline set by Trump.

Lee Seung-jae, Arirang News.