Aperam says Brussels must act if EU flooded with steel as a result of Trump tariffs

ArcelorMittal SA

11/02/2025 16:11

By Alessandro Parodi
       Feb 11 (Reuters) - French steelmaker Aperam  APAM.AS  on
Tuesday called on Brussels to intervene to curb imports if new
25% tariffs on all steel and aluminium imports into the United
States prompt companies to ship more to the European Union
instead. 
    The company's comments highlight the worries among European
steelmakers about a potential fresh flood of cheap steel into
the EU as happened in 2018 under the first Trump presidency. 
    Last week, the world's second largest steelmaker
ArcelorMittal  MT.AS , from which Aperam spun off in 2011,
called on the European Union to tighten trade protections. 
    The Mittal family remains the largest shareholder of both
companies with about 40% stake in each.   
    The EU put in place in 2018 safeguard measures to limit the
amount of tariff-free steel entering the bloc to prevent a surge
of imports after U.S. President Donald Trump's then steel
tariffs effectively closed the U.S. market.
    Under World Trade Organization rules, safeguards can only be
in place for a maximum of eight years, meaning they will run out
during Trump's second term in mid-2026. 
    The European Commission's Executive Vice-President Stephane
Sejourne said in December it would look into ways to extend
those measures as part of an overall plan to protect the sector
as it decarbonises.
    "Since 2018, we have already been managing the impact of the
25% duty, working closely with our customers to find mutually
acceptable solutions," a spokesperson for Aperam, which makes
stainless and speciality steels and alloys, told Reuters
referring to the existing U.S. tariffs. Former President Joe
Biden later negotiated duty-free quota arrangements with
Britain, the European Union and Japan.
    "We furthermore expect that if exports from third countries
to the U.S. are deflected to the European market .. the European
Commission promptly takes appropriate measures to safeguard the
interests of its domestic steel producers, like it did in 2018."
    On Tuesday the bloc said it would respond with "firm and
proportionate countermeasures" to the new tariffs.
    The EU's so-called "Steel and Metals Action Plan" aims at
streamlining or delaying certain Green Deal regulations while
pledging to uphold EU climate goals and regulating imports
through quotas. It will be presented in Spring 2025.
    Aperam CEO Tim di Maulo told analysts in a call on Friday
that reducing imports was not the only measure steelmakers had
asked for and any review of the safeguard that strengthened
inefficiencies would be positive. 

 (Reporting by Alessandro Parodi, editing by Alexandra Hudson)
 ((Alessandro.Parodi@thomsonreuters.com;))