Press Release (ePRNews.com) - TAIPEI, Taiwan - Jan 21, 2019 - In an effort to offset the effects of US trade policies, the European Union has resorted to restricting steel imports.
After facing a surge in imports since the US imposed an import tariff of 25% on steel imports in March last year, the European Union approved a policy on Wednesday that will enforce restrictions on 26 categories of products. Any products that exceed the allowed quota will be subject to a 25% import tariff.
The measures come as a response to Chinese products which are flooding into global markets and posing a risk to producers worldwide. The European Union hopes to provide a degree of protection to the standard flow of trade which has been unbalanced by US President Donald Trump’s trade war actions.
Although this decision to implement a restrictions policy is intended to protect EU consumers, analysts at Morgan Newfield say it will also help to enforce Trump’s tariff measures.
The policy is a permanent one and will replace provisional measures put in place in July last year. Morgan Newfield analysts say it is unusual for the European Union to implement trade safeguards which are traditionally viewed as temporary measures to provide relief from increased imports caused by unexpected events.
While many steel companies in the bloc have voiced their support for the import restrictions, Morgan Newfield analysts say businesses who purchase steel have criticized the EU for damaging European industrial growth prospects.