Brussels (Brussels Morning Newspaper) – According to reports, the European Union is undertaking an investigation into a premature rise in aluminium imports. In response to concerns that cheap metal is flooding European markets after being redirected from the United States.
The U.S. recently imposed heavy tariffs on aluminium imports, making it costly for many nations to sell their metal there. Consequently, these metals are now en route to Europe, threatening the stability of the EU’s aluminium industry. The European Commission is intervening to see how bad the problem is.
As reported, this investigation is expected to include all trading partners, including major aluminium exporters like India, Russia and the United Arab Emirates.
Will the EU impose higher tariffs on aluminium imports?
According to the investigation, if there has been a sharp increase in aluminium imports, the European Union will likely raise higher tariffs to decrease the influx of foreign metal. Similar measures have been taken before, such as in 2018 when the EU introduced a 25% tariff on steel imports surpassing a certain limit.
The European Union is also examining ways to tighten its current regulations to stop other nations from sneaking metal into the region through gaps. The goal is to defend European businesses from being crushed by cheaper imports that undermine local production.
How could new regulations stop unfair metal trade practices?
The EU is also likely to introduce more measures to secure the viability of its steel industry. The European Commission recently cautioned that if no measure is taken, Europe could become the world’s repository for excess steel and aluminium that other nations, including China, cannot sell elsewhere due to parallel trade barricades.
According to its defence plan, the EU may also introduce a rule targeting nations that bar exports of scrap metal. If a government refuses to export its scrap metal to Europe, the EU could prohibit that nation’s metal from becoming part of its market. This is indicated to ensure that European steelmakers have sufficient raw materials to sustain production.
The European Commission has not officially responded to these proposals, but reports suggest that its action plan will include both immediate protective actions and longer-term plans to help the industry. Many businesses are anxiously anticipating what steps will be taken next to secure the future of Europe’s metal industry.
