EU plans higher tariffs to save European steelworkers' jobs

DW (English)

For years, the European Commission was a strong advocate of free trade and low tariffs — at least when it came to industrial goods. But now, Brussels is shifting course and wants to increase tariffs on steel imports from around the world.

Transcript

00:00The European Commission's plan to raise tariffs on cheap steel imports from countries like China

00:06is being welcomed by major producers, including ThyssenKrupp Steel Europe.

00:12Two key measures are at the centre of the proposal.

00:16Currently, up to 30.5 million tonnes of steel can be imported into the EU each year without paying any tariffs.

00:25Anything above that amount is subject to a 25% duty.

00:29In the future, only 18.3 million tonnes of steel per year would be allowed in tariff-free.

00:37Imports beyond that limit would face a 50% tariff.

00:42High energy costs and cheap steel imports have forced many blast furnaces across Europe to shut down.

00:49Last year alone, 18,000 jobs were lost in the sector.

00:53It's very easy to shut down factories and dismantle Europe's steel production capacity.

01:01But it is very difficult to rebuild it.

01:04Member states have told us we need to safeguard these factories and ensure Europe's authority over steel,

01:10because without steel, there's no car industry, there's no defence industry.

01:15The German Engineering Federation, VDMA, which represents some of the industry's main steel buyers,

01:24has warned that the new tariffs could push their prices higher.

01:28Carmakers spend up to 900 euros per vehicle on steel.

01:33According to the European Commission, that figure could rise by about 50 euros.

01:38Several industry associations, including the VDMA and the German Steel Federation,

01:43are calling for lower energy prices, a measure that would benefit all industrial sectors.

01:48And the EU Commission seems to be listening.

01:50We must produce our own electricity, we must build the necessary infrastructure,

01:57including cross-border power networks, and we must look to the future,

02:02with cheaper energy and an industry that can once again be competitive.

02:08The new tariff rules are not yet in force.

02:11For them to take effect, both the European Parliament and the EU member states must first give their approval.

02:20for

02:40VDMA, the European Parliament,

02:44the EU First Food,

02:46Right now,

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