Spanish steelmakers association UNESID has warned that current trade tensions between the European Union and the United States are putting the steel industry at risk. In a letter to trade minister Carlos Cuerpo, the association stressed that the US decision to impose a 50 percent tariff has effectively shut its market to European steel, forcing trade flows from third countries into the EU.
This has created what UNESID describes as a “high-risk scenario” for both producers and consumers in Spain and across Europe, undermining the competitiveness and long-term viability of the sector.
Failures of current safeguards
Despite multiple revisions, UNESID argues that the EU’s safeguard measures have been ineffective. Key data highlight the problems:
- Since 2018, EU steel consumption has fallen by 16 percent.
- At the same time, import quotas rose by 23 percent, often being exhausted instantly.
- Imports of processed steel-intensive products - including metal structures, electrical components and metal furniture - have sharply increased.
Carola Hermoso, UNESID’s director general, issued a stark warning:
“Europe cannot afford a weak trade defense instrument. Without decisive action, unfair imports will flood the market and threaten the entire steel value chain.”
UNESID’s proposed trade defense measures
To address the shortcomings of current safeguards, UNESID is urging the Spanish government to defend the following proposals at the European Commission:
- Reduce imports to 2012/2013 levels.
- Apply a 50 percent out-of-quota tariff (similar to the US), with no country exemptions.
- Adopt the “melted & poured” rule to ensure steel traceability.
- Expand tariff coverage to processed products at risk, with no quotas.
Steel industry’s strategic role
UNESID emphasized that steel remains a strategic industry for Spain and Europe, contributing to:
- Decarbonization goals through sustainable production.
- Quality employment and industrial innovation.
- Circular economy leadership within the EU.
The association urges Spain to take a decisive role in Brussels, ensuring Europe maintains a fair and balanced framework that protects both producers and users of steel against unfair trade practices.