stainless steel

Spain’s stainless steel giant Acerinox urges the European Union to act fast with Trump-style tariffs and strong trade protection. Local sourcing and strong trade barriers are essential to preserving Europe’s stainless steel sector in the face of escalating defence and infrastructure demands as well as increased Chinese imports.

In the same way that former US President Donald Trump has responded to the increase in cheap steel imports from China, the CEO of Acerinox, one of the largest stainless steel manufacturers in Europe,has called on the European Union to adopt a more robust trade protection posture. 

In a recent interview, Bernardo Velazquez, CEO of Acerinox, said the EU’s current safeguard system has failed to stop Asian producers, especially from China and Indonesia, from overwhelming the European market. He believes that stronger tools like Trump-style tariffs are needed to protect the European stainless steel industry, which is already struggling with high energy costs and excess global capacity.

Using words like “tariffs” does not indicate anything to be scared of. According to Velazquez, legislative changes are required if we want to ensure a consistent supply of strategic minerals. “The EU is a prime destination for low-cost steel from Asia because we have the biggest free market in the world.” 

The current EU safeguard system allows duty-free steel imports under country-specific quotas and places a 25% duty above that. However, Asian mills have found loopholes, often re-routing steel through third countries to bypass the rules.

Velazquez cited Japan, India, and Indonesia as significant competitors that have overtaken the European stainless steel industry, causing a pricing war that is endangering domestic manufacturing.He warned that if stricter regulations aren’t implemented right now, European stainless steel manufacturers may be left without any viable markets when the safeguard system expires in 2026 and isn’t expected to be renewed.

On a positive note, he welcomed Germany’s new defense and infrastructure spending plan, which could boost local demand for stainless steel. But he reiterated that tariffs and trade protection are crucial to ensure that European companies can support this growth.

Though Acerinox’s North American Stainless unit performs well in the U.S., Velazquez cautioned that even Trump’s tariffs create uncertainty, as they can affect sourcing of raw materials and equipment. Still, he believes the European Union must act fast if it wants to keep its stainless steel industry alive and strong.