Europe needs effective protective measures for steel in light of US tariffs – EUROFER

Europe needs highly effective protective measures for steel in light of US tariffs. This appeal was made public by the European Steel Association (EUROFER).

The EU and the US are expected to have until August 1 to conclude a trade agreement and put an end to the devastating impact of 50% US tariffs on European steel. This is important in light of the current realities for the EU metallurgical industry.

As noted by the association, in 2018, the US imposed 25% tariffs on steel under Section 232. The consequences for the European metallurgical sector were immediate. For every 3 tons of imports blocked by the United States, two were redirected to Europe, flooding the EU market with cheap, carbon-intensive products.

To protect its industry, the EU, in turn, introduced a tariff rate quota (TRQ) based on 2015-2017 import levels. The US also granted the EU a TRQ, allowing it to export 3.8 million tons of steel per year, compared to 4.6 million before 2018. EUROFER notes that the United States is the main export destination for European steel producers.

In March of this year, the US abolished tariff quotas and exemptions, reintroducing full tariffs. In June, they were increased to 50%. This jeopardized all EU exports to the United States and created significant risks of redirecting millions of tons of supplies to the EU market instead of the American one.

The association emphasizes that this adds fuel to the fire of the broader crisis facing the European steel sector. Since 2018, steel production in the EU has fallen by 31 million tons, with imports currently accounting for 27% of the bloc’s market. Last year alone, 18,000 job cuts in the industry were announced and/or implemented.

European steel producers, EUROFER notes, are under severe pressure due to global overcapacity, unfair trade, high energy costs and carbon emissions, and a collapse in profitability. The EU must act decisively on effective trade defense measures.

As GMK Center reported earlier, European steelmakers are in favor of a faster replacement and strengthening of the European system of protective measures. It is desirable to strengthen tariff quotas (TRQs) with uniform jurisdiction over these steps for all exporting countries. The replacement of protective measures should cover all categories of steel, including processed products or derivatives.