“We have a global problem, so this requires really a global solution that has to touch on everybody,” the Commission official said about the global measures. They were granted anonymity, as is customary, to brief ahead of the announcement.
The world produces more steel than it consumes and the total capacity of all plants around the world adds up to five times the European demand.
With the plans, Brussels would match Canada’s steel protections but not go as far as U.S. President Donald Trump’s 50 percent tariff, which applies from the first ton on virtually all imports. The U.S. also charges tariffs on consumer products, such as motorcycles, for the amount of steel they contain.
Stepping stone
The proposal is meant as a “stepping stone” for a better deal with the United States, as the two sides agreed back in July, the senior official said.
Šefčovič noted that transatlantic trade in steel was modest, making the EU and United States natural allies in the fight against overcapacity: “We are taking on the challenge of global overcapacity ourselves and it would be much more efficient if we did it together, or with like-minded partners,” he told reporters.
The EU’s 50 percent tariff — even though it applies to fewer imports than Trump’s — is “going to be a very good basis for us to engage with the United States,” the official said. They added that the bloc would hope that the proposal creates an “opening to be able to have a negotiation so that we move away from the current 50 percent that affect our steel exports to the U.S.”