Introduction to EU Tariff Plans
The EU announced on Tuesday that it plans to double the tariffs on foreign steel and halve the import quotas allowed in the block before the tariffs are collected. This move comes as the European steel sector struggles to compete with China.
The EU’s Steel Sector Crisis
The European steel industry is on the edge of collapse, with the EU’s industrial commissioner, Stephane Sejourne, stating that the industry needs protection to invest, decarbonize, and become competitive again. The proposed EU plan aims to permanently replace the existing protective clause, which collects 25% tariffs if specified import quotas are exceeded. This clause is set to expire next year.
Global Steel Production
China dominates the global steel production landscape, producing over 1.1 billion tons of steel last year. This far exceeds its nearest rival, India, which produced 149 million tons. Japan and the USA follow, with 84 million tons and 79 million tons, respectively. The EU as a whole produced 129.5 million tons, with Germany producing 37 million tons and France producing less than 11 million tons.
Impact on the Steel Sector
The steel sector employs around 300,000 people in Europe, but almost 100,000 jobs have been lost in the past 15 years. According to Eurofer, there are also 2.3 million indirect jobs at risk due to the current crisis. The EU’s plan to double tariffs on foreign steel aims to protect the industry and prevent further job losses.
Approval and Implementation
The proposal is subject to approval by the 27 EU member states and the European Parliament. The EU’s industrial commissioner, Stephane Sejourne, is set to present the plan to Parliament in Strasbourg. If approved, the new tariffs will help to protect the European steel industry and promote the reinustrialization of Europe.
The Road to Reinustrialization
The EU’s plan to double tariffs on foreign steel is a step towards reinustrialization, according to Sejourne. The strategy aims to protect the European steel industry, allowing it to invest, decarbonize, and become competitive again. This move is seen as a necessary step to prevent the collapse of the industry and to promote the growth of the European economy.
