Merz backs EU plan to protect steel sector from Chinese imports
www.france24.com
Germany supports proposals by the EU to increase tariffs on foreign steel as the bloc struggles with cheap imports, especially from China, Chancellor Friedrich Merz said Thursday.

cross-posted from: https://scribe.disroot.org/post/5502362

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The EU in October floated plans to double tariffs on foreign steel – taking a leaf from US President Donald Trump’s book to shield the bloc’s struggling industry from cheap Chinese exports.

The bloc’s executive proposed hiking levies on steel imports to 50 percent and slashing the volume allowed in before tariffs apply by 47 percent.

“I will support these proposals to the best of my ability and hope that appropriate regulations will be put in place,” [German chancellor Friedrich] Merz said.

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As an addition:

  • The steel industry is one of the most subsidized industrial sectors across all countries, mainly to preferential loan terms as debt is the sole source of funding in the industry.

  • Across all countries, larger steel firms are subsidized than smaller ones, and state-owned enterprises receive more subsidies than other firms.

  • China is by far the largest steel maker, producing more than half of all crude steel in the world. China’s subsidization rate is ten times that of OECD countries. In addition to government grants and below market borrowings, measures include subsidized energy prices and preferential tax treatment for steel firms.

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