EU Steel Protection Plan Sparks Internal Strife; Downstream Industries Warn of Risks of "High Tariffs" Backfiring
Ten industry associations, including the automotive lobby group ACEA and the European Metal Packaging Association, said in a joint statement on Tuesday that the EU’s plans to strengthen trade protection measures in the steel sector could harm exporters within the EU. In October, the European Commission proposed a series of measures, including a 50% tariff on steel imports exceeding specific quotas and a nearly 50% reduction in duty-free steel import quotas, aimed at protecting Europe’s struggling steel industry from the impact of overcapacity. The joint letter stated: “ We believe that the parameters proposed by the Commission go too far in ‘fencing off’ the European market.” The letter also noted that industries across the EU would face billions of euros in additional tariff costs, along with a corresponding increase in administrative burdens.
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