In recent days there have been increasing suspicions and rumors that, at least temporarily, steel tariffs (and other metal products such as aluminum) could fall between the European Union and the United States.
Are EU and U.S. putting mutual steel tariffs on hold for now?
After the European Commission’s focus on Safeguard measures seemed to have already shifted – we reported – Bloomberg also reported today in an article that unnamed U.S. insiders said that an agreement regarding steel tariffs with the European Union could be reached as early as Monday.
Tariffs gone – but steel shortage problem remains
While that would mean a fundamental change in the tariff policies of the two major economies, it would probably do little to change the basic situation. The United States and the European Union suffer massively from shortages of steel, stainless steel and aluminum, for example. And prices have skyrocketed (also globally).
And the steel products shortage would not be countered by this. After all, there is no steel. And the EU and US steel mills can’t keep up with production (or maybe don’t want to because of the high prices?).
Do EU steel producers then divert material to the USA?
Presumably, the problem for the EU would only get worse, as spot market prices in the United States are still much higher than in Europe. And EU steelmakers and aluminum producers are likely to divert large volumes of steel and aluminum to the U.S. if the tariffs really do fall on Monday, May 17, 2021.
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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.