EU To Push Steel Union With US To Address Overcapacity — Sefcovic

KUALA LUMPUR, Sept 25 (Bernama) -- The European Union (EU) will continue discussions with the United States (US) on steel and aluminium as part of efforts to address global overcapacity that is flooding the European market, said European Commissioner for Trade and Economic Security Maros Sefcovic 

Speaking to reporters today on the sidelines of ASEAN Economic Ministers’ Meeting (AEM) and Related Meetings, Sefcovic said the EU had concluded discussions with US Trade Representative Jameson Greer,  noting that the talks also covered next steps, with emphasis on the importance of a joint EU–US approach to steel and steel derivatives for Europe and its businesses.

“We have been discussing for quite some time the creation of a sort of steel union between the EU and the US. We are not exporting much steel to each other, but we are both facing a global overcapacity of steel products that are flooding our markets.

“Therefore, we agreed that I will send a letter to the Secretary of Commerce and to the US Trade Representative to reaffirm our deal from July 27, while also highlighting how important the issue of steel and steel derivatives is for the EU and our future business relationship,” he said.

In June this year, the issue of US tariffs resurfaced in Europe when US President Donald Trump’s 50 per cent levy on steel and aluminium imports took effect.

Meanwhile, the US lowered tariffs on auto imports from the EU to 15 per cent retroactive to Aug 1, cementing the terms of the framework trade agreement between the two sides.

Sefcovic noted that the EU currently has no exemptions on steel and aluminium exports to the US, despite shipping about four million tonnes of specialised steel and one million tonnes of steel derivatives annually.

He said Brussels has proposed a special tariff-rate quota (TRQ) based on historical flows, alongside coordinated measures against global overcapacity.

He also linked the issue to defence, stressing that Europe’s commitment to higher military spending made protecting its steel industry essential.

“If you build military hardware, you need steel. So we need to do our utmost to protect our steel industry,” he said, adding that Brussels is weighing further safeguards beyond 2026.

-- BERNAMA