The recent announcement over tariffs for steel imported from many countries outside the United States has generated complaints from European, Asian and South American groups. Various government entities have threatened retaliatory tariffs on material exported from the United States.
The European Union has been one of the most vocal critics of the decision to slap tariffs on a wide range of finished steel products. According to the EU, the 30 percent tariff on many of the steel products is more a reflection on the U.S. steel industry’s failure to restructure itself over the past 30 years. At the same time, many European-based steel companies have taken the initiative to restructure their operation.
The EU also noted that the United States already is protected by more than 200 measures aimed at unfairly traded steel imports. Despite these measures, many U.S. steel companies have failed to cut costs and modernize to compete globally.
In a statement by the European Union, since the peak of the steel crisis the middle of last year, the steel imports into the United States have declined, while U.S. steel prices have increased by around $90 per metric ton.
According to published reports, the EU is considering a number of responses to the steel tariffs. Some steps the EU is considering include filing a complaint to the World Trade Organization, plus creating safeguard measures on imports.
Additionally, the EU is expected to consult with other steel producers affected by the policy, including Japan, Korean and Brazil.
Along with seeing a sharp increase in the cost to ship many steel products to the United States, some European steel producers feel that as much as 9 million metric tons of steel imports may be redirected to EU countries, adding to the overall difficulties for the European steel industry.
The Japan's steel industry also criticized decision by the United States to impose hefty tariffs on steel imports, saying it will urge the Japanese government to lodge a complaint with the World Trade Organization.
"We cannot help but saying it was an unfair decision that imposes excessive sacrifice on steel exporting makers and U.S. customers," said Akira Chihaya, chairman of the Japan Iron and Steel Federation and president of Nippon Steel Corp. in a statement.
The federation plans to hold talks with the government on what measures should be taken, including filing a complaint with the WTO dispute-settlement body, Chihaya added.
The volume of Japanese steel exported to the United States has already fallen to about one-third of peak levels, following a series of anti-dumping complaints filed by the United States.