The United States and European Union will create a metals alliance aimed at reducing the impact of Chinese-subsidised production on global markets, EU Trade Commissioner Maros Sefcovic said on Monday.
The agreement is part of the wider trade deal between the two sides.
Under the deal, European steel and aluminium producers will receive tariff rate quotas, replacing the 50% import tariffs imposed earlier by the U.S. The new system will allow minimal or zero tariffs and is still being finalized.
Sefcovic said both the U.S. and EU recognized that their steel sectors are facing the same challenge. He said the two sides agreed that they are not each other’s problem in the steel and metals trade.
The proposed quotas will apply to steel, aluminium, copper, and related products. Sefcovic described the plan as a joint ring-fence for both economies, with tariffs based on historic trade levels and preferential terms.
European producers have been concerned about the loss of scrap metal supplies to U.S. plants. Scrap is used widely because it is cheaper and requires less energy to process than raw metal.
Sefcovic also said the move is part of broader efforts to address global overcapacity and trade imbalances. The G7 nations discussed similar concerns in May without directly naming China.
He added that talks with Chinese officials have not resolved key issues. He said the list of concerns had grown longer, especially over what the EU views as illegal subsidies and overcapacity in China’s metal industry.
