EU "watches" diversion of Chinese exports - Expected to limit steel and electronics imports from Beijing
With the start of reciprocal tariffs, the European Union expects goods previously destined for the US to seek out the bloc's markets. Chinese renewables, steel and electronics top the list of products that have caught the Commission's attention.
The side effect of the tariffs is overcapacity, and European Commission officials describe as "dynamic" the journey that products subject to tariffs in the US will make to European shores.
“There could be trade diversions, with some countries no longer being able to export their goods to the US, choosing alternative markets,” a senior EU official said. “Of course we will be ready to defend our market, we will not accept any volume and quantity,” he added.
China is under the EU's spotlight after its imports to the US were hit by 54% US tariffs. Steel is expected to be one of the overcapacity products that will spill into the bloc's market, especially in view of the faltering Chinese domestic construction sector. "Steel has not been able to be consumed domestically in China," the same senior official said, pointing to the risk of diversion to the EU.
Chinese and EU steel has already been hit by 25% tariffs that came into effect in mid-March. The data revealed that global steel overcapacity is expected to rise from around 602 million tonnes in 2024 to 721 million tonnes by 2027. That represents more than five times the bloc's steel output, according to Eurofer, the European association representing the steel industry.
Other Chinese products are also expected to seek new routes to trade in the EU. “Electronics and renewables, such as solar panels or wind turbines, also pose a risk to the Union,” experts point out. Electric vehicles, which are already subject to EU tariffs from November 2024, are also on the list of products that could be subject to overcapacity.
The Commission plans to increase oversight of global markets when reciprocal US tariffs take effect on China and other countries around the globe on April 5 and 9.
"For China, we have been in this situation before in the steel sector, especially when the US in 2017 closed its market to Chinese imports. At that time we adopted safeguard measures," the EU official said.
Safeguard measures, authorized under WTO rules, make it possible to reduce imports of certain products in the event of a sudden influx of a product into a given market.
"We have it for steel for a period. It is too early to say whether we will need it for other sectors. We are monitoring the situation," the official added.
Poll
Changes in the student loan scheme - Application through e-Albania, interests are covered by the state
The Council of Ministers has approved several changes to the decision on "determining the student loan scheme", with the aim of facilitating procedures for......
Cryptocurrencies join global market turmoil – Bitcoin suffers biggest losses overnight!
Bitcoin fell below $78,000 as investors braced for more volatility in financial markets after US stocks suffered their worst drop since 2020, with President......
Denaj: Improving irrigation-drainage infrastructure strengthens "Made in Albania" brand products!
The Minister of Agriculture and Rural Development, Anila Denaj, shared on social media moments from the work she is carrying out there, where heavy equipment......
Austria closes 24 border crossings with Hungary and Slovakia after outbreak of animal disease, Foot and Mouth Disease!
Austria has closed two dozen border crossings with its neighbors Hungary and Slovakia in a major effort to curb the spread of foot-and-mouth disease and......
Temperatures up to -9 °C in the north of the country – ARRSH informs on the current situation of road axes!
The Albanian Road Authority has announced that snowfall continued overnight in the North and Southeast of the country without causing traffic......
Rama is honored with the Presidential Medal of Honor in Israel: I am receiving it on behalf of all Albanians!
Prime Minister Edi Rama was honored with the Presidential Medal of Honor awarded by the President of Israel, Isaac Herzog, a medal awarded specifically to......
Electricity, 30% cheaper in March - Renewable sources and rising temperatures, the main factors
According to Eurelectric data, electricity production in solar and nuclear power plants, combined with higher temperatures, reduced the price of electricity......
How has this week started for the major currencies? – The Pound and the Dollar are weakening significantly!
The US dollar has suffered another price drop this week, as compared to the previous week, it was bought today for 89.7 lek and sold for 91.2 lek according......
