EU steel industry braces for impact of US tariffs

DW (English)

New US levies on steel and aluminum from the European Union are expected to enter into force, as President Donald Trump pursues his policy of slapping tariffs on global imports. But for Europe's steel industry, the tariffs are just another challenge after years of dampened demand and what lobby groups say is unfair competition from Asian metalmakers.

Transcript

00:00Sparks fly non-stop at this steel production site near Amsterdam.

00:05But staff here say that business as usual is becoming something of a battle,

00:09with US tariff policy the latest in a long line of woes.

00:13We basically have costs related to the whole decarbonisation journey,

00:19and at the same time we face massive overcapacity across the world.

00:23And basically, so it's sort of a perfect storm.

00:28This high-grade steel is used for batteries, packaging and car parts.

00:32It's hard to produce elsewhere, meaning some US customers will keep coming.

00:37But the bigger fear is that more subsidised Asian metals end up in the European Union,

00:42as China looks for alternative markets amid flaring tensions with the US.

00:46That steel will be redirected, and with Europe being one of the only open markets,

00:51remaining open markets in the world, yeah, Europe is a likely target.

00:56If you have a lack of a level playing field, instead of innovation, you start cutting costs.

01:01You start basically, well, getting to survival mode.

01:05Energy prices in Europe also run much hotter than elsewhere.

01:09In this room, liquid steel is cast into slabs.

01:13The slabs come out at about 800 degrees Celsius, or 1500 degrees Fahrenheit.

01:19And even from afar, you can really feel the heat on your face here.

01:23This Dutch plant says it's steel optimistic.

01:27But in recent years, steel factory closures and job cuts have been announced across the EU.

01:32We've seen something like 30 million tonnes lost in terms of steel production in the last year or so.

01:42And when we turn 30 million tonnes into steel workers' jobs,

01:46we're talking about the loss of thousands of jobs across Europe.

01:51Brussels says it stands ready to back up this strategic sector.

01:55Last month, the EU unveiled steps to try and cut energy costs and stimulate demand for cleaner steel,

02:01with more action planned for late March.

02:03There is really a mix of measures necessary, making private investment less risky.

02:10But I think in general, making this, creating this, what we call them lead markets,

02:15so that the industry actors are really incentivised to invest in the decarbonisation

02:21so they can kind of reap the green premium.

02:23Though the EU insists this is in line with green promises,

02:27climate campaigners fear the bloc is backtracking on pledges to make polluters pay.

02:32Industry always says we are losing jobs because we can't compete with other countries with lower standards.

02:39And we would really not be happy with the EU participating in this race to the bottom rhetoric.

02:45Back at the Dutch steel plant, efforts to decarbonise are underway.

02:50But staff here say future-proofing an industry facing crisis now is no mean feat.

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