Spanish Chamber of Commerce assesses the impact of US tariffs on steel exports

Last year, Spanish steel exports to the US market amounted to 264.8 thousand tons

The imposition of 25% tariffs by the US on all steel and aluminum imports to the country could mean an average reduction of 10.4% in the total value of Spanish exports of these goods destined for the US market. These are the first estimates of the Spanish Chamber of Commerce and Industry (CCE), Kallanish reports.

Last year, the volume of Spanish steel exports to the United States amounted to 264.8 thousand tons (+0.4% y/y). According to data released by the US Census Bureau, its value amounted to $412.2 million.

However, a uniform increase in tariffs for all countries that export steel and aluminum to the United States will not be so harmful to Spain, as the relative prices of these products will not change significantly, CCE explains.

In the fall of 2021, the EU and the US agreed to introduce a tariff quota system (TRQ) in steel trade, which is valid until March this year. According to this agreement, 3.3 million tons of steel per year can be exported duty-free from the bloc to the United States. A 25 percent tariff applies to shipments in excess of the quota.

As GMK Center reported earlier, Polish Minister of Development and Technology Krzysztof Paszyk said that the EU countries are united and determined to protect the European steel sector from potential market destabilization following the US general steel tariffs. However, the bloc must negotiate with the United States to remove transatlantic trade barriers.