U.S., E.U. Arrangement on Steel is a Step Forward in Addressing Global Overcapacity

Washington, D.C. – The United States and European Union on Saturday unveiled an interim arrangement on Section 232 steel measures.

Alliance for American Manufacturing President Scott Paul said:

“The arrangement announced between the United States and European Union today recognizes the value of steel production to America’s economic and national security. Sensible tariff rate quotas, a ‘melted and poured’ requirement, adjustability when demand shrinks, and a focus on global overcapacity will allow American steelworkers and steelmakers to grow and contribute to rebuilding our nation.

“We were pleased the previous administration initiated long overdue Section 232 relief for America’s vital steel industry, and we’re now pleased the Biden administration is widening the focus on global overcapacity while maintaining appropriate defenses. It’s worth noting that nothing in the arrangement modifies the 40 or so existing anti-dumping and countervailing duty cases on EU metals, nor does it prohibit new unfair trade cases from being initiated against the EU.

“The interim arrangement must now lead to the EU joining the United States in getting serious about challenging China’s contribution to global overcapacity and demanding measurable changes. This focus will be especially important as we seek to dramatically reduce carbon emissions.” 

Research firm Horizon Advisory released a report earlier this week outlining how China is avoiding Section 232 tariffs by funneling its steel through Europe. The report, titled Footholds & Friction: China’s European Steel Front, underscores the need for the United States to maintain strong trade action while working with allies to resolve the global steel overcapacity crisis once and for all.