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Aperam: Brussels must act in the event of a steel flood into EU as a result Trump tariffs

Aperam, a French steelmaker, called on Brussels on Tuesday to intervene and curb imports in the event that new 25% tariffs for all steel and aluminum imports to the United States cause companies to ship more goods to the European Union.

The comments of the company highlight the concerns among European steelmakers over a possible new flood of cheap steel to the EU, as it happened in 2018, under the first Trump Presidency.

ArcelorMittal - the second largest steelmaker in the world, from which Aperam was spun off in 2011 - called last week on the European Union (EU) to tighten up trade protection.

Mittal Family remains largest shareholder in both companies, with approximately 40% of each.

In 2018, the EU implemented safeguard measures in order to limit the amount tariff-free steel that enters the EU in order to prevent an import surge after U.S. Steel Tariffs were implemented by President Donald Trump, effectively closing the U.S. Market.

According to World Trade Organization regulations, safeguards are only valid for eight years. This means they will expire during Trump's second presidential term, which is mid-2026.

Stephane Sejourne, Executive Vice-President of the European Commission, said that in December he would examine ways to extend these measures as part a plan to protect this sector during its decarbonisation.

Aperam, a manufacturer of stainless steels and specialty alloys, said, "Since 2018 we have managed the impact on the 25% duty. We work closely with our customers to come up with mutually acceptable solutions." Joe Biden, former president of the United States, negotiated duty-free agreements with Britain and other countries.

"We also expect that the European Commission will take appropriate measures, as it did in 2018, to protect the interests of domestic steel producers if exports to the U.S. from third-country countries are diverted to the European Market."

The bloc announced on Tuesday that it would take "firm and proportionate" countermeasures to the new tariffs.

The EU's "Steel and Metals Action Plan", also known as the "Steel and Metals Action Plan", aims to streamline or delay certain Green Deal regulations, while promising to maintain EU climate goals and regulate imports via quotas. The plan will be unveiled in the Spring of 2025.

Aperam CEO Tim di Maulo said in a Friday call with analysts that reducing steel imports wasn't the only thing that steelmakers wanted. Any review of safeguards that increased inefficiencies would also be a positive. (Reporting by Alessandro Parodi, editing by Alexandra Hudson)

(source: Reuters)