US Steel and Aluminum Tariffs Could Destroy EU Metals Industry

Today, EU leaders are meeting in Brussels, where, during a two-day summit, they will discuss, among other things, the situation with the imposition of tariffs on steel and aluminum in the United States. The European Steel Association, Eurofer, is calling for unanimous support for strong action to protect the EU steel industry, which creates 320,000 jobs. Imports of rolled metal products to the EU are growing faster and faster.

Imports of steel products to the EU in the first two months of this year increased by 12 percent and exceeded historical highs from 2016-2017. Over the past five years, imports to EU member states have increased by 65 percent. The European Union has already become the largest steel importer, even before US tariffs took effect.

The numbers showing an increase in imports of some products, such as reinforcing bars and profiles, are even higher. They were imported 75 percent more in January and February 2018. In general, in 2013-2017, the growth reached 98 percent. For profiles, 148 percent in the first two months of 2018.

Axel Eggert, CEO of Eurofer, emphasizes that the European Union and the United States are interconnected in many areas: political, military, cultural. “By maintaining these links, the European steel industry has always been a reliable supplier of steel to the American market. “The Section 232 responsibilities should be seen as a slap in the face for the existing partnership,” says Axel Eggert.

It is not only the limited access to the US market that causes concern, but also the consequences of redirecting current exports of third countries from the US to other markets, including the EU. According to Axel Eggert, the consequences of US sanctions are already visible in the Union, and only the introduction of protective measures for all steel products will protect EU manufacturers from the negative consequences of customs duties.