By Jason Langeand Lisa Lambert
WASHINGTON (Reuters) - U.S. officials are pushing for quotas and "other restrictions" on Steeland aluminium imports, a top Trade Officialsaid on Tuesday after the White Houseannounced a month-long extension of tariff exemptions for Canada, Mexicoand the European Union
The decision to extend that deadline was welcomed by many of America's trading partners, but they continued to push for permanent exemptions.
"We will have quotas and other restrictions to make sure that we defend our industries in the interest of national security," White HouseTrade Advisertold SteelIndustry Executives
PresidentDonald Trump%27s Administrationsaid in March it would impose tariffs of 25 percent on SteelImportsand 10 percent on aluminium in a bid to stanch imports from China, which it says had driven down prices and put U.S. companies out of business.
But it granted temporary exemptions to allies such as Canada, Mexicoand the EU, which had been due to expire on Tuesday morning. The administration said on Monday night those exemptions would continue for a month, but added a full imposition of tariffs remained an option.
"Last night's decision is certainly a step forward," Canadian Foreign MinisterChrystia Freelandtold reporters on Tuesday, adding: "Canadawill continue to work for a full and permanent exemption."
Before Tuesday, South Koreawas the only country with a full exemption after it agreed to quotas. The White Housesaid on Monday it had reached agreements for permanent exemptions for Argentina, Australiaand Brazil
The White Househas attempted to link exemptions for Steeland aluminium imports from the EU to a reduction of tariffs on Car Importsby the bloc.
That move has been rejected by the EU, which says it must receive a permanent exemption on the Steeland aluminium tariffs before holding a wider discussion on trade. It has rejected a discussion of auto trade.
'PROTRACTED EXTENSIONS' UNLIKELY
"We're having some potentially fruitful discussions about an overall reduction in trade tensions," U.S. Commerce SecretaryWilbur Rosssaid of the discussions with the EU in a CNBC interview.
"I don't think we have any intention to grant protracted extensions. That defeats the whole purpose."
Trump has invoked a 1962 Trade Lawto erect protections for U.s. Steeland aluminium producers on national security grounds, amid a worldwide glut of both metals that is largely blamed on excess production in China
The tariffs have increased friction with U.S. trading partners and prompted several challenges before the World Trade Organization
At the same time as pursuing the metals tariffs, which have raised concern among U.S. consumers of Steeland aluminium that rising costs will make them uncompetitive, the Trump Administrationhas set out to tackle what it says is China's theft of intellectual property from U.S. companies.
A U.S. delegation will travel to Beijingthis week to discuss the issue. Trump has threatened to add $100 billion of imports from Chinato initial list of $50 billion if Chinaretaliates against U.S. goods.
(Reporting by Jason Langeand Lisa Lambert; Additional reporting by David Lawderin Washington, David Ljunggren in Ottawa and Philip Blenkinsop in Brussels; Editing by Paul Simaoand Peter Cooney)
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