According to media reports, the EU is investigating the aluminum import market to prevent a surge in imports that could impact domestic industries following the Trump administration's imposition of tariffs, which has altered global trade flows.
Aluminum Import Investigation and Tightening Steel Policies
According to internal EU documents, the European Commission plans to officially announce the launch of an aluminum market investigation this Wednesday. The investigation will cover all trade partners to assess whether there is an abnormal increase in import volumes. If the investigation finds that the surge in imports impacts local industries, the EU may take countermeasures.
Meanwhile, the EU also plans to close loopholes in its steel import tariff system. The document points out that the US imposed a 25% tariff on steel and aluminum last week, which may exacerbate high energy prices, sluggish demand, and the impact of cheap imports, putting more pressure on the EU steel industry. The European Commission warns that the US tariff policy may cause shifts in international steel trade flows, making the EU a major recipient of global excess steel capacity.
Data shows that in 2023, EU steel production fell to its lowest level in history (excluding the pandemic impact), while over the past decade, the market share of aluminum producers has also shrunk significantly. The European Commission states that if other countries raise tariff barriers worldwide, the pressure on local industries in the EU may further increase.
Global Market Impact and EU Response Measures
Analysts believe that the EU's actions indicate it may tighten regulations on imports from third countries, highlighting the broad impact of the Trump administration's tariff policy on the global market. Not only the EU, but the South Korean government also urged officials last week to closely monitor market fluctuations potentially triggered by US tariffs and prepare to respond.
In addition, the EU plans to impose restrictions on scrap metal exports. In recent years, the EU's scrap steel export volume has more than doubled, accounting for 20% of its steel production, making it difficult for local steel manufacturers to obtain raw materials. To enhance industrial competitiveness, the EU hopes to adjust export policies to ensure that domestic enterprises have enough raw material supply.
Carbon Border Tax Expansion Plan
According to the draft, the EU also plans to revise the Carbon Border Adjustment Mechanism (CBAM) in the fourth quarter of 2025 to expand its scope to cover downstream products that are steel and aluminum intensive. Meanwhile, the European Commission suggests that member states lower energy taxes for heavy industries and provide greater subsidies for hydrogen energy development to support low-carbon transition and enhance the competitiveness of local industries.
The EU's series of measures indicate that the global trade landscape is changing due to US tariff policies, and governments are stepping up to adjust strategies to safeguard national economic interests and respond to possible market upheavals.
