For Europe, the removal of US steel tariffs has become increasingly urgent, particularly as American plants are attracting critical scrap metal supplies away from EU smelters. Scrap is a key resource because it is cheaper than primary metal and more environmentally efficient to recycle.
The proposed alliance reflects a broader effort by Western economies to curb the effects of China’s industrial policies. At the G7 finance ministers’ meeting in May, leaders agreed to address “excessive imbalances” in the global economy, with Chinese subsidies widely seen as a core issue—though not explicitly mentioned.
Reflecting on last week’s EU-China summit, Sefcovic expressed frustration with Beijing’s trade practices. “Despite the strenuous efforts of my colleagues and myself, and several long meetings with my Chinese counterparts, the list of accumulated issues did not get shorter—it just grew longer,” he said.
“Clearly, the issue is overcapacity. The issue is linked with what we perceive as illegal subsidies,” Sefcovic added, signalling stronger European resolve in coordinating with the US to confront the challenge.
