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European officials announced today that they will ensure that tariffs on steel imports in the region are permanent in order to help stem the overabundance of steel. offer triggered by Donald Trump's trade war against China.
This decision highlights that protectionism is spreading and that Donald Trump's trade war with China is taking root in the global economy.
The EU will impose quotas on 26 categories of products and collect a 25% duty on imports exceeding these quotas, announced Wednesday the executive arm. This proposal cemented the proposals tabled last July with the stated aim of protecting European steelmakers against Chinese overcapacity.
European producers feared that European markets would be flooded with steel products that are no longer imported into the United States.
But automakers protested the decision.
The European Association of Automobile Manufacturers ACEA has declared "extremely disappointed" and called protectionist measures, citing statistics showing that US steel exports had only slightly decreased, which means that very little extra steel was imported to Europe.
"These measures do not take into account the needs of downstream steel users, such as the automotive sector," the group said in a statement.
Read more: Chart Shows How US Companies Are Affected by Trump's Trade War
Renault is down 1% at 10:30 in London (5:30), while German automakers such as Volkswagen, BMW and Daimler are all lower by at least 0.9%.
Steel imports in Europe hit a record in the first 10 months of 2018, up 12% over the same period in 2017, according to the Eurofer's European Steel Association , the European Steel Association. Similarly, US imports fell by 14% and global exporters diverted 60% of this steel to the EU. The EU decision will ensure that the guarantees remain in force until July 2021.
The main steel exporters to the EU are China, India, Russia, South Korea, Turkey and Ukraine.
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