Search
Email a friend
  • To include more than one recipient, please separate each email address with a semi-colon ';', to a maximum of 5

  • By submitting this article to a friend we reserve the right to contact them regarding AMM subscriptions. Please ensure you have their consent before giving us their details.


Europe to strike back without 232 exemption

May 23, 2018 | 01:22 PM |

Tags  European import taxes, EU, EC, Section 232, US import taxes


DNEPR, Ukraine — The European Commission (EC) will set a 25% safeguard duty on steel and aluminium imported from the United States from June 20 if the European Union is not exempted from Section 232 tariffs.


The EC will only apply the measures if the World Trade Organization (WTO) approves the move. The duties would affect a number of US products, including steel and aluminium.

If applied, the measures will be enacted in two stages. In the first step, ad valorem duties of 25% on products - including US steel and aluminum imports - will be imposed from June 20 until the US lifts a 25% measure on European steel imports and 10% on aluminum imports.

The second stage will see ad valorem duties on an expanded range of products of 10%, 25% and 50% from March 23, 2021.

In late April, US authorities postponed until June 1 the imposition of tariffs - arising from the country's Section 232 trade investigation - on steel and aluminium imported from the EU, Canada and Mexico. The threatened 25% tariff on steel arises from the country’s Section 232 investigation.

Both the EC and European steel association Eurofer claim that the decision to extend Europe’s exemption from Section 232 tariffs only serves to prolong the uncertainty in the market and believe the EU should be permanently exempted from the tariffs.

The US safeguard measures “are capable of having a considerable negative economic impact on the [European] Union industries concerned. They would significantly limit [EU] exports of steel and aluminium products... to the US, [which were] worth at least €6.41 billion ($7.55 billion) in 2017, of which €5.30 billion [was] steel [and] €1.11 billion [was] aluminium,” the EC said.

The EU exported 3.16 million tonnes of carbon steel to the US and imported only 101,160 tonnes of steel from the US last year, according to Eurofer statistics.

The EC started a safeguard investigation into 26 steel products on March 26 with the intention of shielding the region’s steel industries from the effects of a possible surge in shipments being redirected to Europe from the US due to the Section 232 import tariffs.

Maria Tanatar
maria.tanatar@metalbulletin.com



Latest Pricing Trends Year Over Year

Poll

How will US hot-rolled coil prices fare over the summer?

Rise sharply
Rise modestly
Stay largely flat
Fall modestly
Fall sharply


View previous results