Madrid Times

España Viva: Your Window to Madrid and Beyond
Tuesday, Mar 18, 2025

Brussels to Extend Steel Safeguards Amid U.S. Tariffs and Chinese Overproduction

Brussels to Extend Steel Safeguards Amid U.S. Tariffs and Chinese Overproduction

The European Commission plans permanent measures to protect the EU steel and aluminum markets in response to U.S. tariffs and global overcapacity.
The European Commission is set to announce the extension of trade safeguards for the steel sector, along with the possibility of permanent measures to protect the European market, in light of recent developments in global trade dynamics.

Affected by U.S. tariffs imposed on steel by former President Donald Trump and the significant overproduction of steel in China, these measures aim to bolster the competitive standing of the EU steel and aluminum industries.

The announcement is expected to occur in the third quarter of the year, as part of a broader plan to address the challenges faced by the metals sector.

Back in 2018, amid the first trade war with the United States, the European Union implemented safeguards for its steel sector.

These included import quotas, beyond which tariffs would be applied.

These temporary measures are set to expire in June 2026. The EU's executive believes there is a need to strengthen and extend these protections permanently, indicating that the structural overcapacity affecting global trade is unlikely to diminish by the 2026 deadline.

According to the draft plan, "It is not reasonable to assume that the structural overcapacity will disappear by July 1, 2026. Instead, it is likely that negative trade effects will worsen, as more countries adopt measures to limit imports, making the EU market the primary receiver of global overcapacity."

Brussels describes the situation as "exceptional," advocating for a suitable level of border protection to ensure a competitive and sustainable EU steel industry.

Furthermore, new investigations into the aluminum market will be initiated to assess the impact of U.S. tariffs on this sector, building on a prior investigation into the steel sector initiated in December.

Recent reports indicate significant increases in aluminum imports to the EU, which has forced the industry to halt much of its production capacity.

The EU's production levels have not rebounded since the pandemic, with 2023's steel production reportedly being the lowest on record excluding the years affected by the health crisis.

This situation has been exacerbated by high energy prices and weak demand.

The Commission highlights that U.S. tariffs on aluminum may also pose a considerable threat of trade diversion, leading producers to redirect their products to the EU market, which consists of 27 countries and 450 million consumers.

To address potential evasion of trade safeguards by exporters, the Commission has devised a new protocol for tracking incoming products.

This initiative is intended to prevent exports from countries with tariffs being re-labeled from countries without tariffs.

New regulations will classify the origin of metal products based on their original smelting location rather than subsequent processing locations.

In summary, the EU's planned measures reflect ongoing tensions in international trade, particularly relating to U.S. tariffs and the rising capacity issues originating from China.

The Commission seeks to fortify its steel and aluminum industries against the evolving global trade landscape, as well as ensure proper enforcement of safeguards designed to maintain fair trade practices.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
European Union Moves Toward Joint Debt for Military Spending
Inquiry: Social Media Platforms Sanctioned Advertisements Featuring Anti-Semitic and Anti-Muslim Material in Germany
French Prime Minister Bayrou Emphasizes Position Against US Tariff Threats
DOGE has found that there are 394 million recipients of Social Security in the United States.
FBI Issues Alert on Increasing Smishing Scams Aimed at Mobile Users
The EU and Canada Declare Countervailing Tariffs in Response to U.S. Steel and Aluminum Tariffs
Romania Excludes Top Presidential Contender Călin Georgescu from Election Repetition
Pope Francis Displays Signs of Recovery, Yet His Hospitalization Persists.
Leak of Radioactive Coolant Reported at Europe’s Largest Nuclear Reactor
Russian Teacher Under Investigation After Explicit Content Incident in Classroom
Poland Plans Comprehensive Military Training for All Adult Males Amid Enhanced Defense Initiatives
Trump Discovers Negotiating with Russia Less Challenging than with Ukraine Amid Continuing Conflict
EU Member States Endorse Gradual Rollout of Entry/Exit System
Pope Francis's Health Status: Vatican Reports Stable Condition
MPs from Across the Parties Express Worry About Proposed Reductions to the UK Aid Budget
U.S. Sets Up Strategic Cryptocurrency Reserve, Triggering Market Rally
Zelenskyy Convenes with UK Prime Minister Starmer During Rising US Tensions
Here, unelected President Zelensky meets with two top American democratically elected officials who are neither stupid, nor bribed, nor blind
Pope Francis Admitted to Hospital Due to Pneumonia Faces Breathing Difficulties
Katy Perry to Participate in All-Female Space Team on Blue Origin Mission
Apple Sued for Allegations of Deceptive Carbon Neutrality Claims Regarding Watches
US President Asserts NATO Membership for Ukraine Is Off the Table
Germany's Election Outcomes: Migrants Confront Insecurity as Far-Right Support Grows
Unelected President Zelenskiy suggests he will step down only if the unthinkable occurs: Ukraine becomes a NATO member.
German Election Polls Indicate Change as Conservatives Take the Lead and the Far Right Makes Strides
Research Examines Possible Connection Between COVID-19 Vaccines and Post-Vaccination Syndrome
American Airlines Flight Rerouted to Rome Following Bomb Threat
German Chancellor Recognizes Party Loss in National Elections
Trump Commends German Election Outcomes as 'Fantastic Day for Germany'
German Political Leaders Respond to Election Outcomes
Preliminary Exit Polls Suggest Conservative Advantage in German Election
The US may restrict Ukraine's access to Starlink internet services due to mineral concerns.
Stabbing Incident in Mulhouse, France: One Fatality, President Condemns Islamist Terrorism
Vatican Declares Pope Francis' Health Status as 'Critical'
U.S. and Hungarian Officials Engage in Dialogue on Economic Collaboration and Sanctions Strategy
Tech Giants Ramp Up Lobbying Campaigns Against Strict EU Regulations
Pope Francis Admitted to Hospital in Rome Amid Increasing Speculation About Succession
Zelensky Calls on World Leaders to Back Peace Amidst Strains with Trump
UK Leader Keir Starmer Calls for US Security Guarantee in Ukraine Peace Deal
NATO Chief Urges Higher Defense Expenditure in Europe
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advance.
Pope Francis Continues to Stay in the Hospital as Physicians Treat Complicated Infection.
Rubio Reaches Riyadh Before Important U.S.-Russia Discussions
Transatlantic Gold Rush: Traders Shift Bullion Amid Concerns Over Tariffs and Market Turmoil
AI Giants Confront Nvidia's Supremacy in Light of New Chip Innovations
Macron Summons Emergency Summit Amid Threats to Ukraine-War Business Model
Trump’s Defense Secretary: Ukraine Won’t Join NATO or Regain Lost Territories
Zelensky Urges Europe to Strengthen Its Military in Light of Uncertain US Assistance
Trump's Greenland Suggestion Sparks Sovereignty Discussion Amidst Historical Resentments
OpenAI Board Dismisses Elon Musk's Proposal for Acquisition
×