Chinese Steel Price War and Trump-Era Tariffs Squeeze European Producers
European Steel Industry Faces Tough Challenges
Meanwhile, China's Steel Exports Expected to Hit Record High This Year
Reports have emerged that the European Union (EU) is planning to impose tariffs of up to 50% on Chinese steel within the next few weeks.
On September 25 (local time), the German business daily Handelsblatt, citing senior officials from the European Commission, reported that the Commission plans to impose tariffs ranging from 25% to 50% on Chinese steel and related products within the coming weeks.
Earlier this month, the European Commission announced that it would introduce measures to protect the European steel industry. On September 10, European Commission President Ursula von der Leyen stated, "As a follow-up to the soon-to-expire steel safeguard, we will introduce a new long-term trade instrument," noting that global oversupply is undermining profitability and making it difficult for the European steel industry to invest in decarbonization.
Maro? ?ef?ovi?, European Commissioner for Trade and Economic Security, also remarked on September 18 that "very strong (steel) trade protection measures will be adopted by mid-October."
The safeguard was a system introduced by the EU in response to the steel tariffs imposed by the first Trump administration in the United States in 2018. Under this system, EU member states can import steel up to a country-specific quota without tariffs, but imports exceeding the quota are subject to a 25% tariff. However, under World Trade Organization regulations, the current steel safeguard cannot be extended beyond mid-2026.
The EU is pushing for these measures because the European steel industry is facing difficulties due to the combined impact of tariffs from the Trump administration and the influx of low-priced Chinese products. According to the European Steel Association (Eurofer), an interest group for EU steel companies, the EU imported 28 million tons of steel last year, which accounts for one-quarter of total steel sales in the EU. In 2012-2013, before China began exporting low-priced steel in earnest, the EU's steel imports were only half of last year's volume.
Meanwhile, China's steel exports are expected to reach an all-time high this year. Analysts estimate that China's steel exports will increase by 4% to 9%, reaching approximately 115 million to 120 million tons.
There is a general consensus in Europe on the need to introduce high tariffs on steel. Previously, 11 EU member states, including France, proposed imposing a 50% tariff on imported steel exceeding certain quotas in order to halve steel imports.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
