U.S. Postpones European Steel and Aluminium Tariffs

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Commission (EC) has warned that the 30-day delay by the U.S. government on a decision over proposed steel and aluminium tariffs will only increase market uncertainty.

The White House confirmed that the threatened tariffs of 25% on steel and 10% on aluminum imports from the European Union (EU), Mexico and Canada will be postponed until June 1 to allow U.S. Trade Representative Robert Lighthizer to finalise trade deals. President Trump has previously maintained that there is a need to revitalise U.S. steel production and protect the struggling sector from cheaper imports and alleged national security concerns.

"The U.S. decision prolongs market uncertainty, which is already affecting business decisions," the European Commission stated. "The EU should be fully and permanently exempted from these measures, as they cannot be justified on the grounds of national security. Overcapacity in the steel and aluminum sectors does not originate in the EU. On the contrary, the EU has over the past months engaged at all possible levels with the U.S. and other partners to find a solution to this issue."

It added: "The EU has also consistently indicated its willingness to discuss current market access issues of interest to both sides, but has also made clear that, as a longstanding partner and friend of the US, we will not negotiate under threat. Any future transatlantic work programme has to be balanced and mutually beneficial."

In mid-March Industrial Info reported that the EU had threatened trade sanctions against the proposed import duties of 25% on steel and 10% on aluminum. U.S. products mentioned included bourbon from Kentucky and iconic Harley-Davidson motorcycles. For additional information, see March 14, 2018, article - Europe Threatens Trade Sanctions Over U.S. Steel Tariffs.

The European Steel Association (EUROFER) cautiously welcomed the temporary reprieve. "The U.S. decision is welcome, if temporary", said Axel Eggert, director general of the EUROFER. "The EU will now be exempted for another 30 days, to give time for further discussion. Despite all the evidence of the harm to the EU-U.S. relationship--and to our respective economies--the Administration has opted to continue a policy of uncertainty in its international trade practice. However, in our view, the EU must not bend to unilateral trade measures and should continue to back multilateral solutions under the World Trade Organisation (WTO) framework".

The U.S. is the world's largest steel importer at 34.6 million tonnes in 2017, according to figures from the International Trade Administration, part of the U.S. Department of Commerce. EU steel producers exported about 5 million tonnes of steel products to the U.S. last year, while Canada was the single largest steel supplier to the U.S. with more than 5.8 million tonnes exported in 2017.

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