Transatlantic Alliance: EU and US Join Forces to Tackle Steel Crisis

European Trade Commissioner Maros Sefcovic and U.S. Commerce Secretary Howard Lutnick are accelerating negotiations on managing steel derivatives at a technical level. Engaging in discussions, Sefcovic expressed optimism about their collaborative progress in tackling the excessive global steel capacity.

Addressing the media, Sefcovic acknowledged the significant challenge posed by global overcapacity, currently estimated at 720 million tons. This surge, without specifically naming China, is inundating the market and jeopardizing the industry, prompting the EU to cut steel imports and enforce 50% tariffs on surplus shipments to shield its steel sector.

EU steel producers are currently operating at 65% capacity due to the increase in imports and existing U.S. tariffs introduced by President Donald Trump. With new strategies, including a proposal from Sefcovic to Lutnick to secure their steel sectors and maintain advantageous trade terms, the aim is to boost utilization to 80% while creating a defensive barrier against subsidized steel.

(With inputs from agencies.)