EU Considering Steel Import Cut

SEATTLE (Scrap Monster): The European Union is considering additional restrictions on steel imports, in part because of the COVID-19 pandemic.

In 2018, the European Union implemented “safeguard” tariffs, which are still in place, that are triggered when imports exceed a certain threshold. This was done in response to concerns that the tariffs imposed by the United States would lead steel-producing countries to dramatically increase their shipments to Europe. Now, EU officials are concerned that the steel being stockpiled while much of the world economy is shut down will flood the European market when conditions return to normal.

“We are looking at the review of the [existing] steel safeguards in this context,” the union’s trade commissioner told the European Parliament in April, according to Reuters. He warned that, “Certain third-country exporters may well decide to sell their product at below cost or at all cost or at any cost, with a view to gaining larger stakes in a smaller EU market.”

Eurofer, the European steel association, asked officials in an April letter to reduce import quotas by 75 percent during the second and third quarters of this year.

“The economy has changed fundamentally,” Eurofer stated, according to Bloomberg. “This radically different situation means that urgent action is needed.”

Courtesy: AIIS