US tariffs threaten Galician competitiveness and industry

Subject: US tariffs threaten Galician competitiveness and industry

The new Trump administration in the United States has recently announced tariffs on aluminium and steel, which may be the first batch of several new tariffs to be imposed by the US on the EU, a close ally and partner. The Galician metallurgic industry alone exports aluminium and steel to the US to the value of EUR 42.5 million. For a country that is already experiencing a severe housing and demographic crisis, a trade war between the US and the EU, or worse, one that extends to several other international partners and allies, will represent a significant blow to our industrial capacity and will have a devastating effect on our citizens.

Given that the tariffs are going to be imposed on the EU, what is the Commission planning to do to protect the EU’s industrial capacity, economic sovereignty and citizens?

Submitted: 12.2.2025

Answer given by Mr Šefčovič on behalf of the European Commission

(14 May 2025)

The Commission regrets the decision by the United States (US) to impose tariffs on European steel and aluminium exports to the US as of 12 March 2025 and its decision to extend tariffs also to a list of downstream products (1).

The Commission publicly stated that any unjustified tariffs will trigger firm and proportionate EU countermeasures. On 12 March 2025, the Commission launched the process to adequately respond, foreseeing the adoption on 14 April. However, given recent developments, the application of these EU countermeasures will be delayed for 90 days to leave space for bilateral negotiations.

The transatlantic trade and investment relationship is the most important in the world. As the EU and US economies and businesses are so closely intertwined, it is in their mutual interest to engage in positive cooperation. When it comes to steel and aluminium, EU exports to the US are not the problem. Rather, the EU and the US have an interest to cooperate on facing the common challenge of overcapacity in the world.

The President of the Commission announced that an ‘Import Surveillance Task Force’ will be set up to monitor trade flows and protect against the indirect effects of tariffs, notably those stemming from trade diversion.

Finally, on 19 March the Commission presented a Steel and Metal Action Plan (2) to increase competitiveness, strengthen and decarbonise the European steel and metals industries.

1 ∙ ⸱ https://www.govinfo.gov/content/pkg/FR-2025-02-18/pdf/2025-02832.pdf and https://www.govinfo.gov/content/pkg/FR-2025-02-18/pdf/2025-02833.pdf.

2 ∙ ⸱ https://single-market-economy.ec.europa.eu/document/download/7807ca8b-10ce-4ee2-9c11-357afe163190_en?filename=Communication%20-%20Steel

%20and%20Metals%20Action%20Plan.pdf.