The Australian Steel Institute (ASI) has cautioned against panic over a European Commission plan to follow US President Donald Trump’s lead in doubling tariffs to protect Europe against cheap steel imports.
The European Commission on Tuesday (Wednesday AEDT) unveiled plans to halve the annual quota, to 18.3 million tonnes, on the volume of steel that can be imported without attracting a tariff. At the same time, the levy rate for amounts imported above that quota would jump to 50 per cent. The changes would take effect from the middle of next year if adopted by the bloc.
ASI chief executive Mark Cain said there were no surprises in the announcement, with only the size of the likely tariff uncertain until now.
“It is a plan and has yet to be ratified. We will work with the Australian Government to ensure the best possible outcome for the Australian steel industry,” Mark said. The news from Europe comes at the same time as the ASI is looking to apply to the Australian Federal Government for a Safeguard action to protect the local Australian steel industry against a surge in cheap imported fabricated steel (see https://www.steel.org.au/what-we-do/advocacy/asi-campaign-on-imported-fabricated-steelwork/ ). The action seeks to protect Australian industry from a surge in imports by applying temporary restrictions (such as tariffs or quotas) on imported products.
Mark made the following comments with respect to the European trade plan:
- Australian industry is being challenged on the supply side in multiple market fronts now – US + Canada + EU tariffs are likely to cause trade diversion
- The collective impact of tariffs across multiple markets is exacerbating and entrenching the problem of excess global steel capacity
- Australia, as an open market, is vulnerable and exposed to excess steel capacity ie steel that might have otherwise been dumped elsewhere will be funnelled into markets like Australia – thereby damaging our domestic industry (demand side damage from dumping)
- Whyalla steelworks sale prospects are likely to be impacted by this additional tariff development if there is an effect on accessible markets for their products.
The ASI is the peak body for the Australian steel industry, representing 700 companies and 7,000 members.
Steel generates 100,000 jobs and $30b in annual revenue in Australia.
For more information on this press release, please contact ASI marketing and communications manager Steven Andrew on 0473 480 964 or [email protected].
