[Text/Observer Network Qi Qian]
The EU follows the U.S. and Canada and takes action on imported steel – tax increases.
On October 7, local time, the European Commission announced that in order to protect the EU from the impact of "unfair global overcapacity", it will start restricting duty-free steel imports next year and cut import quotas in half-the excess will be levied by 50%. Additional tariffs.
The Financial Times and European News Network said the EU did not directly name the move, but the move was undoubtedly aimed at China, but according to BBC reports, the British steel industry collectively mourned, saying the move could cause the industry to face "the biggest crisis ever".
The European Commission has announced
According to the website of the European Commission, the Commission has put forward a proposal that specifically contains three measures: limiting duty-free imports to 18.3 million tons per year, a 47% reduction compared with the steel quota in 2024; Double the extra-quota tariff level to 50%; Strengthen traceability in the steel market by introducing melting and pouring requirements to prevent circumvention.
The committee claimed that the proposed measures were fully compliant with WTO regulations and that the move was "intended to protect the EU steel industry from the unfair impact of global overcapacity and was a key step in ensuring the long-term survival and development of this strategic industry."
The European Commission also said that it will contact affected EU trading partners in accordance with WTO regulations, and may provide them with "country-specific steel import quotas" in the future.
According to reports, the above proposal must be approved by the European Parliament and 27 member states of the European Union. Upon approval, the latest proposal will replace the existing steel industry safeguard system, which expires in June 2026.
Hong Kong’s South China Morning that the proposal did not name China, saying tariffs and quotas would apply to global imports, but an anonymous EU official said that for the EU’s steel industry, “China is the biggest problem so far.”
European News Network said the measure targeted countries such as China. EU officials said that in 2024, the main suppliers of EU steel products are Turkey, India, South Korea, Vietnam and China. The Financial Times also recently cited news that the EU is about to hand over on China's steel.
At the press conference on the same day, EU Trade Commissioner Maros Sefkovic hinted that more investigations were being conducted on China's trade practices. He threatened that the EU is paying attention to other industries most affected by trade fluctuations, and "if necessary, we will also take action in other industries".
He pointed out that by 2024, the EU steel industry will lose 1,8 thousand jobs, “we must stop this.”
The EU has long planned for China.
The EU denied that this move was following the example of the United States and Canada. But before the European Union, US President Trump had imposed a 50% tariff on imported steel. The Canadian government has also recently imposed import restrictions on countries that have not signed trade agreements with it.
"We are not doing Trump-style politics... The European steel industry is on the verge of collapse," said EU industry chief Serjunet."We are protecting the steel industry so it can invest, decarbonize and become competitive again." Sejune and Sevkovic also denied that the EU was implementing protectionist policies and insisted that the EU "does not like tariffs and tariff policies."
According to data from the European Steel Industry Federation (Eurofer), the EU will import 28 million tons of steel in 2024, accounting for a quarter of total sales, which is twice the import volume in 2012/13, when China became the main exporter.
In addition, under the influence of U.S. President Trump’s tariff policy, the EU is expected to significantly reduce its annual 3.8 million tons of steel exports to the U.S. France, as well as the other 10 EU member states including Italy and Spain, are hoping to introduce US-like “melting and irrigation” rules to prevent Chinese steel from bypassing tariffs through third countries from entering the EU market.
Reuters quoted analyst forecasts as saying that this year China's steel exports are expected to hit a record high, with a growth rate of 4% to 9%, and the total export volume may reach 115 million tons to 120 million tons.
The British "Financial Times" previously pointed out that long before Trump imposed a 50% tariff on EU steel exports to the United States earlier this year, the European steel industry was already struggling in the face of competition from imported products from China and high energy prices. Trump's tariffs on other countries have also raised concerns that more low-cost steel products diverted from the U.S. market will flood into the EU.
Since the beginning of September, under the pressure of high-quality Chinese products and Trump's high tariffs, some European steelmakers have urged Brussels to impose tariffs similar to those of the United States on all imported steel products, warning that the industry is at risk of collapse.
As for China-Europe relations, China has consistently emphasized that China’s development and opening up to Europe and the world is an opportunity, not a risk.Protectionism does not solve the EU’s problems, it protects the backwardness, it loses the future.China and Europe are each other’s second-largest trading partner and are important forces in building an open world economy, and should solve specific economic and trade issues through dialogue and consultation.
British industry mourns: the biggest crisis in history
"The EU steel tariff increase threatens British industry, and the British steel industry is facing the biggest crisis in history." The BBC published an article on the 7th pointing out that the EU is the most important export destination of British steel, worth nearly 3 billion pounds, accounting for the overseas market share of British steel products. 78%.
Previously, Trump’s high tariffs had seriously hit British companies, leading several companies to fall into a serious financial crisis.The EU’s latest initiative was “another heavy blow” to the British steel industry.
Asked about Britain's concerns at the 7th conference, Sevkovic replied that he expected to be "fully engaged" in discussions with Britain on the issue.BBC said he hinted that negotiations could be launched in the future to determine a specific UK quota.
British Prime Minister Stammer, who had departed on a visit to India on the same day, responded that the government would provide “strong support” to the British steel industry, saying “I’ll tell you more later, but as you might expect, we’re discussing,” but declined to disclose any details of the discussions.
The Ministry of Commerce said in a statement that it was “exhorting the European Commission to clarify the impact of the move on the UK urgently.”
“Protecting trade flows between the UK and the EU is crucial and we will work with our closest allies to tackle global challenges rather than aggravate our industry,” Industry Secretary Chris McDonald said in a statement, adding that “we will continue to explore stronger trade measures to protect British steel producers from injustice.”
The British government said industry ministers will meet with representatives of the steel industry on 9th to discuss their concerns.
British Steel director general Gareth Stress urged the Government "must use our trading relationship with the EU to the full extent to ensure access to UK national quotas" or the industry could face "disaster". He warned that the latest "fatal" measures of the EU will pose an "existential threat" to British steel companies and industries after they come into effect.
"This is undoubtedly one of the biggest challenges we have faced in a long time," the head of a British stainless steel products company pointed out that EU countries are the company's main export markets and their future trade with EU customers is now a cause for concern.