Reference News Network, October 10 report. According to the website of the U.S. "New York Times" on October 7, the Trump effect is spreading globally, and the European Union proposed to impose a 50% tariff on steel.

The EU executive body quickly took action to protect the steel industry from competition, proposing on the 7th to significantly increase steel tariffs. This move could cause pain for the UK and other closely related trade partners.

The European Commission's proposal will cut the amount of duty-free steel imports to 18.3 million tons per year, nearly a 50% reduction from the 2024 quota.

At the same time, it will double the tariff on steel imports exceeding the quota, raising it to 50%.

The goal is to counter global overcapacity, as cheap steel imported from other places has taken market share in Europe, leading to unemployment among steel workers in EU member states.

This move by the European Commission is also a response to recent U.S. steel tariffs; the U.S. imposes a 25% import tariff on British steel and a 50% tariff on steel from other countries.

European Commission President von der Leyen said in a statement announcing the proposal: "Global overcapacity is damaging our industry."

For British steel producers, the EU is a more important market than the U.S. Industry data shows that British steel producers produce about 4 million tons of steel annually, with about half exported to the EU.

The UK government emphasized that it is increasing duty-free steel exports for construction projects and other purposes, as this will help "rebuild Britain's industrial strength."

Although countries can negotiate the allocation of duty-free quotas (which at least creates some room for the UK), the 50% tariff on imports exceeding the quota will apply universally.

Gareth Stace, Director General of the British Steel Association, said in a statement: "This could be the biggest crisis the UK steel industry has ever faced. The government must fully utilize our trade relationship with the EU to ensure the UK's country-specific quota." (Translated by Zheng Guoyi)

Original article: https://www.toutiao.com/article/7559541109660074539/

Statement: This article represents the views of the author. Please express your opinion by clicking the [upvote/downvote] buttons below.