The EU will announce Wednesday a probe to protect Europe’s troubled aluminium sector from a flood of cheap imports because of higher US levies, according to a document seen by AFP.
Brussels is worried about a possible knock-on effect on its already struggling metals industry from US President Donald Trump’s 25-percent tariffs on steel and aluminium imports, which took effect this month.
“US tariffs on aluminium are likely to worsen the situation further given the significant threat of trade diversion from multiple destinations,” a draft of EU plans to support the sector reads.
“This is why the Commission has started to gather the relevant evidence in view of using the trade defence instruments,” said the document, which could change before publication.
Trade defence tools at the EU’s disposal include the opening of an investigation into whether there has been a sudden increase in aluminium imports, which could lead to import curbs.
Europe’s metals sector is reeling from a series of bad news at the end of 2024.
German industrial giant and steelmaker Thyssenkrupp announced plans to cut 11,000 jobs in its steel division while giant ArcelorMittal postponed its decarbonisation investments across Europe.
Besides Trump’s tariffs, to which the European Union has responded by announcing its own duties on up to $28 billion of US goods, the draft document lays out an array of challenges.
These include high energy costs, unfair international competition, financing to decarbonise and the “regulatory burden”.
Brussels already has measures — including import limits — in place to protect the steel industry.
The document suggests it is now preparing to do the same for aluminium, pointing to EU producers losing “substantial market share over the last decade”.
The plans come as part of a broader push to bolster the continent’s competitiveness and protect Europe’s industries from unfair overseas competition.
EU industry chief Stephane Sejourne will formally unveil them on Wednesday.
The metals are critical to meet Europe’s military needs as it seeks to re-arm and ramps up investment in the defence sector, the document noted.
Thinking beyond June 2026, the document said Brussels would introduce “a long-term measure providing a highly effective level of protection to the EU’s steel sector”.
“We would be much more vigilant with managing the quotas for the steel products entering into the European market,” EU economic security chief Maros Sefcovic said.
The European steel industry currently employs more than 300,000 people — but has lost almost 100,000 jobs in the past 15 years.
This story was originally featured on Fortune.com
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