G20 uncovers three-pronged steel battle between EU, US and China

As battles between police and protesters raged outside, the leaders of the European Union, the United States and China came close to tearing apart the trade front at the G20 Hamburg summit.

“We already hear that some parties are considering introducing protective measures against steel imports in the near future. If this happens, the European Union will know how to react correctly, ”said the head of the European Commission, Jean-Claude Juncker.

US President Donald Trump has pledged to cut tariffs on steel imports to protect American industries, but Washington may begin levying duties immediately after July 13.

Customs duties on some steel pipes alone impacted US imports of $ 152.6 million last year. Germany (US $ 38.8 million) and China (US $ 29.4 million) were the largest, followed by Switzerland, India, South Korea and Italy.

For its part, the EU has taken action against some Chinese steel products, arguing that the government is providing unfair subsidies to manufacturers and distorting the market.

China, which produces about half of the world's steel supply, was less talkative about the issue in Hamburg. But last month, Beijing raged against European sanctions, accusing Brussels of overlooking its credit system. “It is biased and unfair for Europe to blame China for its own production problems,” said Wang Hejun, a senior official at the Chinese Ministry of Commerce.