The European Union on Monday launched a steel import safeguard investigation covering all countries outside the trading bloc, the European Commission announced.
The investigation covers 27 “steel product categories,” and should be concluded within nine months, the EU said, though such reviews can be extended to 11 months in “exceptional circumstances,” according to an EU general summary on the format of the bloc’s safeguard investigations.
The review could result in import tariffs or quotas “that would shield EU producers from excessive imports” if necessary, and “provisional measures” could be adopted at short notice if they prove necessary, the EU said.
A surveillance system for steel imports that has been in place since March 2016, has indicated imports of certain steel products have been rising, a trend that could be strengthening after the U.S. proclaimed generally global 25 percent tariffs on steel imports earlier this month, the EU said.
The U.S. also proclaimed generally global 10 percent tariffs on aluminum.
“Steel products from other parts of the world previously destined to the U.S. may be redirected to Europe, disturbing the market and skewing prices,” the announcement said.
The EU’s investigation procedure “follows strictly multilateral rules,” as safeguards are a trade remedy recognized by the World Trade Organization, the EU said. “The [European] Commission continues to further examine the market situation and is prepared to react as appropriate.”