EU has existing tools to reduce pain of steel tariffs, says Thyssenkrupp executive

BRUSSELS: Europe already has tools to reduce the impact of Trump tariffs and Chinese over-capacity on the EU steel industry, such as stopping Russian imports of the metal, a Thyssenkrupp executive board member said on Thursday.

The EU banned steel imports from Russia after its invasion of Ukraine, with its shipments to be phased out incrementally.Stopping those completely is among the tools the bloc can use to help its steel industry weather Trump tariffs and a Chinese supply glut, Thyssenkrupp board member Ilse Henne said during a conference with EU trade chief Maros Sefcovic.

“There is still Russian steel coming into Europe. How much? Three to four million (tonnes a year),” Henne said. “And it is very easy to stop that.”

“Security starts in making sure that industries survive today. And for the steel industry, that means simply applying a number of defence instruments that we already have.”The EU is also currently negotiating a trade agreement with India, with talks due to conclude by the end of this year. India’s federal trade minister Piyush Goyal said in April India was trying to secure greater access for its steel exports to various markets, including the EU.

Henne said Europe was “at the edge” in its negotiations with India. “There is a solution, or a high risk that Indians dump following the Chinese deals on the market,” she said.The EU already fears much of China’s steel and aluminium production will be rerouted from the US to flood Europe, as Chinese state aid has created a supply glut.

The commission already tightened existing steel import quotas by 15 per cent in April and is working on replacing those safeguards with a tighter system ahead of their expiry next year.It is also examining how to set aluminium safeguards, as well as possible export duties on metal scrap.