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The European Union is initiating a probe into the aluminium market to safeguard the bloc’s struggling industry from a surge in low-cost imports resulting from Donald Trump’s tariffs.
According to a document obtained by the Financial Times, the European Commission will announce the investigation on Wednesday, with the aim of examining a sudden increase in imports from all trading partners.
If the probe identifies a significant rise in aluminium imports, Brussels is prepared to implement countermeasures. Additionally, the EU plans to close loopholes in its tariff system for steel imports.
The document highlights the potential exacerbation of the aluminium industry’s challenges due to the 25% tariffs imposed by the US last week. The EU has pledged to retaliate against the US with tariffs on up to €26 billion worth of American products.
Furthermore, the EU is considering expanding its steel measures to prevent circumvention by China through third countries. It may also impose reciprocal bans on nations that restrict exports of scrap metal to the EU.
The draft metals action plan, which aims to address challenges faced by the steel industry, includes provisions for greater protection under the carbon border tax and initiatives to help reduce carbon emissions.
Companies in the steel industry have expressed concerns about the affordability of investing in new technologies for decarbonization. The commission suggests that member states could lower energy taxes for heavy industries and provide subsidies for hydrogen to facilitate the transition.
The commission has not provided a comment on the proposal but has indicated that the action plan will outline additional sector-specific priority actions and long-term measures to replace expiring trade defense safeguard measures.