Commenting on the recommendations of the US Department of Commerce regarding the Section 232 investigation which include global tariffs or quotas, the European Steel Association (EUROFER) has warned that deployment of blanket trade restrictions will almost certainly be contested by other WTO countries. It will spark prompt retaliation alongside action from the EU to safeguard its internal market from the ensuing trade deflection.
The European steel industry is concerned that, whichever alternative President Trump decides to reach for, other than declining to act, as he is also able to, there could be a massive deflection of previously US-bound steel products to the EU’s open market. This could seriously and unfairly injure EU producers, breaking the fragile recovery the sector has seen over the past few months, EUROFER said.
“Were either of the two alternatives deployed we would expect swift and vigorous counter action by the EU in order to prevent any potential negative impact on our industry, including necessary safeguard measures mirroring the product scope and types of any US Section 232 trade measures”, emphasized Axel Eggert, director general of EUROFER. “The EU has an arsenal of trade remedies and safeguards available to defend its interests. These can be ready to launch in very short order in response to an economic threat, and the EU industry will demand their immediate application. We urge the US President: Do not pull the trigger on a new trade war,” concluded Mr. Eggert.