New US and EU tax plan on Chinese steel

China, which produces more than half of the world’s steel production, is accused by the EU and the US of posing a threat to the domestic steel industry by creating excess capacity.

According to the Bloomberg story based on sources close to the matter, on the agenda was a proposal by the administration of US President Joe Biden to impose tariffs on steel and aluminum imported from China.

Consequently, the US and the European Union (EU) are considering imposing new customs duties on imported steel and aluminum from China as part of the fight against carbon emissions.

The report indicated that the evaluations are still in the early stages and have not been officially offered.

TOWARDS THE END OF NEXT YEAR BEFORE

It was also indicated in the news that the US could reach an agreement with the EU on customs duties by the end of next year at the earliest.

The trade and development spokesman for the US Trade Representative and the Council of the EU did not respond to questions from Reuters.

China’s Ministry of Commerce, Chinese steel industry representatives could not be reached.

CHINA PRODUCES 60 PERCENT OF THE WORLD’S STEEL

According to consultancy Wood Mackenzie, worldwide iron and steel production emits a total of 3.4 billion tons of carbon a year, 7 percent of global emissions.

China produces more than 60 percent of the world’s steel and 57 percent of the aluminum. (Reuters)