U.S., EU discussing new tariffs focused on Chinese steel
- September 8, 2023
- Posted by: Quatro Strategies
- Categories: Europe, Mining & Metals, Sanctions & Regulation, United States
The United States and the European Union are reportedly in discussions to establish new tariffs aimed at addressing excess steel production, with a primary focus on imports from China that are believed to benefit from non-market practices.
While the scope of these measures, including other countries that may be targeted and the specific tariff rates, is still being deliberated, the aim is to curb the impact of steel overcapacity on global markets.
This initiative is part of the broader Global Arrangement on Sustainable Steel and Aluminum, a negotiation that has been ongoing between the EU and the Biden administration since 2021. The goal is to reach a comprehensive agreement within this framework by October 2023.
The 2018 imposition of tariffs by then-US President Donald Trump, which included a 25% tariff on steel imports and a 10% tariff on aluminum imports, was intended to protect domestic producers and led to a significant trade dispute with the EU.
However, in 2021, both parties decided to resolve this dispute and instead focus on the global arrangement. This arrangement aimed to allow limited volumes of EU-produced metals to enter the United States without tariffs while retaining the disputed tariffs on other imports.
The ongoing discussions aim to devise a more comprehensive approach to address steel overcapacity, particularly concerning imports from China. The precise details of these new tariffs and their potential impact on the global steel trade will depend on the outcomes of these negotiations.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
France and ArcelorMittal announce €1.8 billion investment to cut carbon emissions
ArcelorMittal SA and the French government are set to invest €1.8 billion ($2 billion) to reduce carbon emissions from the company’s Dunkirk steel plant, aiming to cut France’s industrial emissions by 6%. Finance Minister Bruno Le Maire announced the plan, indicating that the French state’s…
ArcelorMittal considers bid to buy US Steel Corp
ArcelorMittal SA, the world’s second-largest steelmaker, is reportedly considering a potential offer for US Steel Corp, as sources familiar with the matter revealed. This potential move could mark a reversal of ArcelorMittal’s strategic focus after it sold most of its US operations to Cleveland-Cliffs Inc in 2020. The company had been concentrating on expanding in growing markets like India and Brazil. However, it seems ArcelorMittal is discussing a possible offer for US Steel with its investment bankers, though there’s no certainty the bid will proceed.
Beijing’s new coal strategy tests global faith in its climate pledges
China will continue building new coal-fired power plants through at least 2027, according to a new policy directive released Monday by the country’s top economic planner and energy regulator. The guidelines, aimed at upgrading China’s coal power system, position new coal capacity as a crucial “backup” for intermittent renewable energy sources such as wind and solar.
The move signals a more prolonged role for coal in China’s energy mix than some had anticipated, potentially raising questions about Beijing’s commitment to reducing coal use during the critical 2026–2030 climate transition window. However, the guidelines emphasize that new coal projects are intended to support grid reliability and meet peak electricity demand, especially in regions where power shortages are more likely.