Eurocorps soldiers carry a European Union flag during the flag-raising ceremony on the eve of the inaugural session of new European Parliament in front of Louise Weiss building, headquarters of the European Parliament in Strasbourg, eastern France, on July 15, 2024. (Photo by FREDERICK FLORIN / AFP)
BRUSSELS, Belgium — The European Union will reduce steel imports by a further 15 percent from April, the bloc’s industry chief said Wednesday, to prevent a wave of cheap steel flooding the market after the United States imposed new levies.
US President Donald Trump slapped 25-percent tariffs on imports of steel and aluminum, raising fears of the knock-on effects for Europe’s beleaguered steel industry, already facing fierce competition from Asia and high energy prices.
“On April 1, we will reinforce the current safeguard clause. We’re aiming for a drop of up to 15 percent in imports,” European Commission vice president Stephane Sejourne said as he unveiled a medley of measures to protect the metals sector.
The commission already has safeguard measures — including import limits — in place to protect the steel industry, that will continue until 2026.
The European steel industry currently employs more than 300,000 people — but has lost almost 100,000 jobs in the past 15 years.
‘Elephant in the room’
Industry group Eurofer welcomed the measures.
“We are grateful that the Commission has clearly recognized the strategic importance of the European steel industry to the EU’s sovereignty, security, and competitiveness,” said Henrik Adam, Eurofer president.
But he warned: “Energy remains the elephant in the room” and urged the EU to do more to reduce energy costs in Europe.
Brussels will also launch an investigation into aluminum on the European market, “with a view to introducing a safeguard clause similar to that for steel”, Sejourne said.
The probe would look at whether there has been a sudden increase in aluminum imports, which could lead to import curbs.
“US tariffs on aluminum are likely to worsen the situation further given the significant threat of trade diversion from multiple destinations,” the commission said.
The general director of ArcelorMittal said the the steelmaking giant was “encouraged” by the EU step.
“This now needs to be supported with rapid action that can put a stop to unfair trade, dumping and resource shuffling,” Aditya Mittal was quoted as saying in a post on Linkedin.
“Additionally, it remains vital to tackle the high energy costs which make it very difficult for the industry to move forward with significant decarbonization projects.”