28 October 2025 – While Argentina calls for further reforms and deregulation, and Italy demands an urgent reform of the EU Green Deal, the recent demand from an importers’ association to extend EU steel tariffs to downstream products amounts to nothing less than a reform deadlock.
Argentina Votes for Further Reforms
Contrary to mainstream media predictions ahead of Argentina’s midterm elections, the libertarian movement there has continued to gain momentum. President Javier Milei’s party doubled its seats in parliament. The voters’ decision thus remains a clear endorsement of radical reform and bureaucratic reduction – a topic from which the European Union could take a big symbolic “chainsaw” lesson.
Italy Calls for a Reform of the EU Green Deal
Encouragingly, similar reformist tones can also be heard from the Italian government. Prime Minister Giorgia Meloni recently spoke out in favor of a complete halt to the European Commission’s proposed revision of the EU Climate Law. She warned of the damage to domestic industry caused by the purely “ideologically driven” EU Green Deal and urged comprehensive reforms.
Europe needs reforms more urgently than ever – whether in regard to the Green Deal, CBAM, overreaching bureaucracy, or suffocating trade defense measures.
EU Steel Tariffs: When Importers’ Associations Demand Even More Market Protection
That’s why we find it paradoxical when importers’ associations call for even more tariffs. At first glance, it may seem pragmatic and logical to protect steel producers from alleged cheap imports and, in turn, shield the downstream industry from imports of further processed products. But unfortunately, the offices of such associations have not thought this through to the end. A mistake already made by French President Emmanuel Macron.
Any kind of market protection, whether through tariffs or import quotas, is meant to help domestic producers gain a larger market share. But this only works in the short term, because domestic producers raise prices, which in turn increases production costs across the entire downstream value chain.
Once the Tariff Spiral Starts Turning
As a result, imported finished products become cheaper and begin to threaten manufacturers of pipes, screws, household goods, machinery, or vehicles. While one industry’s competitiveness rises, another’s automatically falls.
Demanding that the downstream industry also be protected from cheap imports merely drives up the overall price level in the European Union and leads to a considerable loss of purchasing power among consumers – who, in the end, are the ones paying the tariffs (= taxes).
EU Exports Become More Expensive Due to EU Import Tariffs
To make matters worse, competitiveness doesn’t just suffer in the domestic market – exports also become significantly more expensive. Rising production costs negatively affect international competitiveness, causing European companies to fall further behind.
The economic damage caused by this endless spiral of market protection measures, whether tariffs, import quotas, or CO2 taxes, is repeatedly ignored. But when even major automotive associations speak out against the introduction of new tariffs and quotas, importers’ associations should urgently reconsider their demands to extend tariffs to downstream products.
Because building more import restrictions is not a reform at all.
Latest news:
- Base Metals Start the Week Stable and Friendly
- Is the EU Trade Committee Heading for a Showdown with the U.S.?
- Dispute Over Chinese Chipmaker: Is It Always Everyone Else’s Fault?
We at the Gerber Group have been trading in stainless steel worldwide for over 20 years. We are your experts when it comes to purchasing, import, logistics and services. Information is a vital part of this. Because only then can you and we make the right decisions. Do you have any questions? Contact us now.
Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
