The EU must act on steel imports following the tariffs applied by the USA

The statement of the heads of the European steel industry addressed in an open letter to EU leaders and EU institutions. Steel is diverted to Europe as a result of the 25% tariffs imposed by the USA, and the European Union must act.

The steel industry in Europe is the world leader in certain segments of the metal products market.

An urgent meeting between the European authorities and the steel representatives of the EU is requested. To discuss the solutions that ensure the survival of the sector in the face of unbalanced external pressures”.

Signatories include steel and stainless steel producers ArcelorMittal, ThyssenKrupp, Tata Steel and Acerinox.

There has been a sharp slowdown in the outlook for the European steel industry, supported by long-term trends. 45 industry executives representing approximately 90% of EU steel production declared.

European steel industry and market

„The global overcapacity of steel and the use of the EU market as a dumping ground for this capacity is at the origin of the problem,” stated the aforementioned letter.

Steel imports into the EU have doubled since 2013. While demand has only grown marginally and it seems that it will decrease in 2019.

The European Commission is currently reviewing its „safeguard” measures designed to limit. And prevent a surge in steel imports following Washington’s tariffs, which have effectively shut down the U.S. market.

These safeguard measures should be tightened, declare the heads of the European steel industry.

As a result of the import tariffs imposed by the United States of America effective March 23 under Section 232 of the US Trade Expansion Act of 1962. Exports to the United States have lost their appeal. There are already indications that, as a result, steel suppliers have diverted part. Of their exports from the US to the EU.

Currently, the quotas are set at the average level of imports from 2015-2017, with a 5% increase, foreseen on July 1 and a year later. Beyond these quotas, 25% tariffs apply.

Article source: https://www.reuters.com/article/us-steel-europe/eu-needs-to-act-on-steel-imports-in-wake-of-u-s-tariffs-industry-idUSKCN1T519B