EU Safeguard Measures Failed to Offset Impacts of Steel Import Tariffs

SEATTLE (Scrap Monster): Leading global steelmaker ArcelorMittal stated that the EU safeguards are inadequate to offset the impacts of hefty import tariffs imposed by the U.S. administration. Further, the company called for urgent measures to protect the European domestic steel industry.

In an interview to a German newspaper, Mr LN Mittal, chief executive officer of ArcelorMittal noted that the European steel industry is passing through a crisis. The regional industry is badly impacted by cooling demand and rising supply. The safeguard measures announced by the EU have enough gaps in them. Exporters are found evading them and importing massive amounts of steel products into the region, he said. Mr. Mittal demanded that further measures are urgently necessary.

According to Mittal, any relaxation to tariff protections would cause immense damage to the entire steel industry. A review of the safeguard measures must be completed before reducing the permitted import levels. A 20% reduction in imports is required for the region to return to 2017 levels. Incidentally, the steel imports into the EU region have surged higher by almost 40% since 2017. The other important demand put forward by Mr.Mittal is with respect to imposition of quotas for individual export countries for hot rolled steel.

Further, he noted that trade conflict between the U.S. and China and uncertainties surrounding Brexit too tends to hurt Europe.