The European Commission is considering new trade restrictions on metal imports and exports to counter the impact of U.S. tariffs and protect the EU’s struggling metals industry, according to a draft policy document.
With concerns that U.S. metal tariffs under the Trump administration could divert excess aluminum to Europe, the EU is evaluating potential import curbs. Additionally, it is planning duties on scrap metal exports to bolster domestic production. The EU already has safeguards in place for steel, including import limits, and launched a probe into alloy imports last December. However, European producers have called for further measures to address the global oversupply, particularly from China.
The draft document highlights that EU metal producers have lost significant market share over the past decade, with half of primary production capacity remaining curtailed since 2021. The U.S. tariffs on aluminum are expected to exacerbate these challenges, increasing the risk of trade diversion from multiple countries.
To reinforce its trade defense strategy, the EU plans to introduce a “melted and poured rule,” aimed at preventing importers from disguising a metal’s true origin by making minor modifications. A new proposal for steel trade measures, based on tariff rate quotas, is also expected by the third quarter of 2024 to replace the current system, which expires in 2026.
Additionally, the Commission is considering imposing export duties of up to 25% on scrap metals as part of a broader steel and metals action plan. The initiative is a key component of the EU’s Clean Industrial Deal, designed to strengthen European industry and enhance competitiveness against Chinese and U.S. rivals. The final plan is set to be announced on Wednesday, though revisions may still be made.
