E.U. Studying Impact of U.S. Steel Tariffs

SEATTLE (Scrap Monster): The European Union in late March launched an investigation to determine how tariffs recently imposed on steel imports by the United States will affect the E.U. market and whether it needs to respond with its own “safeguards.”

E.U. officials are concerned, among other things, that the 25 percent tariffs on steel imports announced by President Trump in March could lead China and other countries to more aggressively sell steel in Europe to make up for losses in the American market.

“The information currently available to the European Commission … has revealed that imports of certain steel products have recently increased sharply, showing that there is sufficient evidence that these trends in imports appear to call for safeguards measures,” the European Union stated in its announcement.

While the investigation was prompted by multiple factors that have contributed to “a negative impact on the market shares of the Union producers,” the announcement specifically noted the impact of “recent developments, such as any trade diversion resulting from the US measures.”

The investigation is to last no longer than nine months.

Courtesy: AIIS