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A European manufacturing alliance representing several downstream industries, including automobiles and metal packaging (such as tin cans), warned EU policymakers on Tuesday that protective measures designed to shield steel producers from fierce global competition could impose unbearable cost burdens on European steel users.
Last October, the European Commission proposed cutting duty-free steel import quotas into the EU by nearly half and doubling tariffs on steel imports exceeding quotas. B50AH350 Non oriented electrical steel, EU steel companies welcomed the move, calling it a "real lifeline" against the global steel oversupply and mitigating the impact of low global steel prices. However, downstream European steel users have a significantly different attitude.
In a joint letter, relevant industry associations pointed out that if import volumes remain at 2024 levels, their member companies will bear an additional tariff cost of approximately €5 billion to €9 billion annually as more steel imports are excluded from duty-free quotas. B50AH350 Non oriented electrical steel, The letter was jointly signed by trade associations representing various sectors, including EU automakers, technology companies, and metal packaging manufacturers.
These downstream industry organizations believe that steel price increases could far exceed the European Commission's average forecast of 3.25%, and could even reach as high as 30% in some product categories.
The steel-consuming industry also warned that the committee's proposal could significantly increase the difficulty of procuring steel for certain industrial uses and called for greater flexibility in rules of origin. B50AH350 Non oriented electrical steel, They pointed out that companies highly embedded in the EU supply chain could be disproportionately impacted under the new tariff mechanism and suggested granting exemptions to trading partners such as Switzerland.
In a letter, the relevant associations stated, "If implemented as is currently proposed, this measure will have a negative impact on European steel users," and urged EU decision-making bodies to adopt a "more prudent and balanced approach."
The proposal has been submitted to the European Parliament for consideration. Once MEPs reach a unified position, their chief negotiator will engage in final negotiations with the Council of the European Union, representing member state governments.
The Council of the European Union adopted a negotiating mandate in mid-December last year, which introduced some flexibility, allowing the European Commission to adjust tariff quotas as necessary to avoid undermining the competitiveness of downstream European industries.
