Donald Trump’s tariff policy begins to have its effect on the old continent, the Tax entry of 25% to all imports of steel and aluminum to the United States It is already a reality from today. In response to … “Unjustified” taxes, the European Union has communicated in the early hours of Wednesday the renewal of tariffs to American products, adopted in 2018 and 2020 and that had subsequently left without effect, as well as a new tariff package worth 26,000 million euros that will impose from April 1 to a wide range of products from the United States. But How can this affect Spanish steel producing companies?
Spain is positioned among the important steel producing countriesusing to a greater extent the steel route of recycling for its manufacture. In our country steel occurs in a total of 22 plants and 50 lamination facilities and first transformationdistributed by eleven autonomous communities, although with greater presence in the Cantabrian mountain range, especially in Asturias and the Basque Country, according to the association of steel producing companies and first transformation products of the steel of Spain, Union of steel companies (Unesid).
Regarding Total sales flow (not specifically steel) that Spain maintains with the US, it reaches the 18.9 billion eurosbeing the second destination, outside the European Union, more important for Spanish companies, only surpassed by the United Kingdom. Of them, some 7.7 billion correspond to the metal sector And many of these exports have a relationship with the industry, reports Confemetalthe Spanish Confederation of Metal Business Organizations.
For its side, Spain exports approximately250,000 tons of steel per year to the USwhich represents 3.3% of total Spanish steel exports and a volume of 518 million euros in 2023 (in the absence of data from 2024), according to UNESID.
On paper, the new regulation of the Trump administration imposes some tariffs to the most severe metal sector than in 2018it reaches more products and has a greater approach to construction and infrastructure. However, 80%, a flow of 6.2 billion, of metal exports to the US will be released from the 25% rate thanks to the ‘key to hand’ projects as a team goods, Confemetal clarifies.
After Biden’s tariff rest to the steel and aluminum sector, the Trump administration makes its own again
It is not the first time that the European Union must face the taxes imposed from the United States. In March 2018he at that time recently initiated in the White House, Donald Trump, imposed 25% tariffs on steel imports and 10% to aluminum importsarguing security reasons. A fact that affected European exports valued at 6,400 million euros and which the EU responded with the implementation of tariff countermeasures on US products worth 2.8 billion euros.
Given the commercial unsustainability of this situation, both parties reached an agreement in October 2021months after the arrival of Joe Biden To the US presidency, temporarily suspending the application of these taxes to establish negotiations with which to reach a global agreement on sustainable steel and aluminum. In this way, tariffs were replaced by tariff contingents based on historical imports with some other exception.
Two years later, the That decided to extend the suspension of these re -quilibrium measures on American products until March 31, 2025 in order to continue negotiations and seek a permanent solution to the global dispute
However, the situation in the panorama gives a I turn with Trump’s return to the White House and its announcement and imposition, as of today, of a 25% tariff rate to imports that enter the country. In response, the EU has announced a packet of tariff countermeasures to a variety of US products worth 26,000 million euros from April 1 of this year, as well as the return of those taxes that had been suspended with the purpose of establishing negotiations. «Tariffs are bad for companies and worst for consumerswhich are unjustified and will lead to firm and proportionate countermeasures. The EU will act to safeguard their economic interests. We will protect their workers, companies and consumers, ”said Ursula von der Leyen.
A situation that occurs in a context already tensioned by the Global steel production overcapacity“Critical challenge that affects the competitiveness of the Spanish, European and world steel industry and generates distortions in trade,” indicate from the association of steel producing companies and first -transformation products of the steel of Spain. And they add that a coordinated approach “to counteract it” will be necessary, involving governments, companies and other international organizations.
From Unesid they consider that with the current “unjustified” measures it becomes 2017 when Trump took possession for the first time and began with this protectionist policy. They also point out that as in 2018 it happened with safeguard measures, «An imbalance in world trade in the sector will occur ».
The general director of UNESID, Carola Hermoso says that Spanish exports do not pose a threat to the American industry. “On the contrary, they contribute to cover a demand that in many cases the local industry cannot satisfy,” he says. «The reintroduction of these tariffs not only affects our companies, but will also generate distortions in international steel trade and this already in a context of global overcapacity. We believe it is a problem that must be addressed with a coordinated approach between governments, companies and international organizations, ”he says.
In addition, he adds that this occurs when the European steel industry faces a “fierce competition” of imports from Asia and other regions, which aggravates the situation even more. «These are imports that do not meet the same rules of the game as European, or protection. The European Union must react firmly, as it happened in 2018, it is essential that rebalancing measures be implemented to protect our companies and our workers, ”requires beautiful.
«We urge the European Union to work in international agreements that help correct market overcapacity and to defend a global loyal competition. Our industry has demonstrated its resilience and its capacity for innovation, but it needs a fair and stable commercial environment to continue contributing to the economic development of Spain and Europe, ”adds the general director of the Employer of Steel.
Most severe American tariffs than 2018
He steel -The high availability strategic material is the First and most used nanomaterial on a global scaleaccording to Unesid. This is present in practically all the utensils and technologies that we use in the day to day, from the rotary machines that produce the present newspaper on paper, through stainless steel pans to wind mills distributed throughout the peninsula that allow producing energy without generating CO2.
Currently, Spanish steel producers who wish to export to the North American market must face a 25%tariff, eliminated the tariff free fees system and being taxed from the first ton of products that cross the American border. While the 25% tariff is maintained for steel compared to 2018, the aluminum rate increases from 10 to 25%, stand out from Confemetal.
Although, there is a commercial agreement that gives a respite to the export of certain products that, in case they are within a volume limit, can enter the US market without that tariff load, but once said threshold is exceeded, the tax of 25%will be applied. In addition, some steel products that, due to the deficit of the North American market, are considered strategic will enjoy tariff exceptions, reports Unesid in a statement issued before the publication of tariffs to this metal alloy by the Trump administration.
Another of the novelties, which exposes Confemetal, is the Increase in the list of articles subject to tariffsincorporating new products derived from steel, such as steel and first transformation or usual home, among others. Thus, the new regulation hardens the scope of these levies beyond the basic products of steel and expands its networks.
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