The European Union and the United States will form a new “metals alliance” to shield their industries from the effects of subsidized Chinese production, European Trade Commissioner Maroš Šefčovič announced on Monday, July 28th, in Brussels.
“The agreement is a clear prospect of joint action on steel, aluminium, copper, and the derivatives in what I’d like to call a metals alliance, effectively creating a joint ring-fence around our respective economies through tariff rate quotas at historic levels with preferential treatment,” Šefčovič said at a press conference.
The announcement came after extensive negotiations between EU and U.S. officials, who agreed their steel and aluminum sectors are facing a common challenge: the destabilizing impact of Chinese overproduction.
For the EU, the urgency of removing U.S. steel tariffs has grown, particularly as American plants are diverting scrap metal supplies away from European smelters. Scrap, which is both cheaper than primary metal and more environmentally friendly, is crucial to European production lines already under strain.
