28 January 2026 – The International Trade Committee (INTA) of the European Parliament approved the draft report on the new steel tariffs and import quotas proposed by the European Commission on Tuesday. Commodity markets: aluminium prices in Asia are rising sharply due to tight inventories. When will the first lawsuit be filed? Criticism of the CBAM CO2 tax continues to grow.
Aluminium Prices in Asia Rise Sharply
Aluminium prices on the Shanghai Futures Exchange (SHFE) rose by up to 5.75% during today’s trading session. On the London Metal Exchange (LME), aluminium gained more than 2.2% at the start of trading and was last quoted at around USD 3,284 per tonne. The LME Aluminium Premium Duty Paid US Midwest had already remained at an exceptionally high level of approximately USD 0.99 per lb the previous day.
The price rally is driven by now very low LME inventories of primary aluminium. In addition, 158,000 tonnes of the listed stocks originate from Russia. Due to existing sanctions, these volumes are considered effectively unsellable, further tightening supply.
INTA Gives Green Light for Negotiations on Steel Tariffs
The European Parliament’s International Trade Committee has approved the draft report on the steel tariffs and import quotas proposed by the Commission in October 2025. At the same time, INTA voted in favour of launching the so-called trilogue negotiations between the Commission, the Member States, and Parliament.
This clears the way for a political agreement on the successor regime to the EU safeguard measures on certain steel products, which are set to expire in June 2026.
Broad Opposition from Steel Consumers
Planned measures continue to face strong opposition from steel-consuming industries. Thousands of small and medium-sized enterprises see themselves severely burdened by the combination of 50% tariffs and sharply reduced import quotas.
These concerns are well founded: rising raw material costs would further increase production costs within the EU and place additional strain on the already weakened international competitiveness of European manufacturers. For many companies, the proposed quotas are economically unrealistic.
Tariffs as an Own Goal
Only a few days ago, the Kiel Institute for the World Economy concluded in a recent study that tariffs are economically equivalent to a consumption tax. In protected markets, the additional costs are borne almost entirely by domestic buyers – not by foreign producers.
Against this backdrop, INTA’s approval of the planned measures appears politically and economically questionable. Credit is due to those Members of Parliament who clearly opposed new tariffs and quotas within the committee.
CBAM: When Will the First Lawsuit Be Filed?
Criticism of the CO2 Border Adjustment Mechanism (CBAM), which entered into force on 1 January 2026, continues unabated. Numerous errors have now been identified in the CO2 default values set by the Commission. Whether and when these sometimes substantial discrepancies will be corrected remains unclear – despite repeated inquiries from industry and policymakers.
Given the flawed calculation basis, the largely unpredictable cost effects, and the immense administrative burden, the likelihood of legal action is increasing. The regulatory framework, now approaching 3,000 pages, may soon face its first cases before the European Court of Justice, with the aim of having CBAM partially or entirely annulled.
From our perspective, such a step would be more than welcome.
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