The European Commission has announced rapid countermeasures in response to the US decision to impose 25% tariffs on steel and aluminum imports from all countries, which officially take effect today, March 12. These tariffs, targeting various semi-finished and finished products like steel pipes, wires, and household items such as machinery and electrical appliances, also extend to a broad range of steel and aluminum goods. By May 12, the US will introduce a system expanding the list of products subject to these tariffs.
The new US tariffs will impact EU exports worth €26 billion, accounting for about 5% of the EU’s total goods exports to the US. This will result in US importers paying up to €6 billion in additional tariffs. In response, the EU plans to reinstate trade measures starting April 1, including 2018 measures targeting US goods worth €2.8 billion and 2020 measures targeting goods worth €3.6 billion.
These 2018 measures were put in place following the US Section 232 tariffs. The 2020 measures had been delayed until March 31, 2025, following negotiations with the US to suspend Section 232 tariffs on EU exports under a specific quota. The EU is also beginning consultations today, March 12, on additional measures aimed at €18 billion worth of US goods, with plans to implement these new measures by mid-April.
The European Steel Association (EUROFER) president, Dr. Henrik Adam, has weighed in on the issue, calling the tariffs a serious threat to Europe's steel industry. He warned that if Europe's steel industry declines, it would severely affect its automotive, defense, energy, and transportation sectors, putting Europe's sovereignty at risk. He noted that the 2018 tariffs had already caused a 1 million metric ton drop in EU steel exports to the US, and the current situation is far worse. With global steel overcapacity reaching record levels and an influx of cheaper steel imports from Asia, North Africa, and the Middle East, the EU market is under increased pressure as steel originally destined for the US market is diverted elsewhere.
Adam emphasized the need for robust EU safeguard measures to effectively counteract the growing deflection of steel imports flooding the European market.
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