The European Steel Association recently asked the European Commission to extend the protection that expires on June 30, 2021, saying the industry is on the brink of collapse due to dumping in China, US tariffs and COVID-19 … According to the association, production of European steel companies fell 17 percent between March and October this year, 28 percent of workers in the industry faced an employment crisis and the industry will need two years to recover.
The protective measures took effect in July 2018. Tariffs are not applied to a specific volume of imports, and if exceeded, a tariff rate of 25 percent is applied. Earlier in March 2018, the United States imposed a 25 percent steel tariff, along with a 10 percent aluminum tariff. The European Commission then implemented safeguards for 26 steel materials and products, with steel exports from Asia predicted to flood to Europe rather than the United States.
South Korean steelmakers will inevitably suffer if the European Commission expands guarantees. Their annual exports to the EU region increased from 3.2 million tons to 3.4 million tons in 2018, but fell to 2.9 million tons in 2019.
The association also demanded a tax on adjusting carbon limits, saying cheap imports from China are growing with the expansion of offshore wind power, leading to increased demand for steel towers. The tax is aimed at products manufactured in countries that emit more carbon. The position of the association is that the difference in price between produced in Europe and imported steel related to compliance with environmental standards should be compensated for by tax.