To protect Europe’s industry from unfair trade and global overcapacity, a redefinition of global trade rules is essential that ensures fairness rather than “wild” competition, president of Italian steelmakers’ association Federacciai Antonio Gozzi said at the association’s annual public assembly on Monday monitored by Kallanish.
He questioned whether WTO norms, respected mainly by Europeans, remain adequate. Without robust defensive trade policies, Europe’s industrial base could face collapse within years, Gozzi warned. He welcomed the initiative by EU Executive Vice President Stéphane Séjourné and Commissioner Maroš Šefčovič to review the bloc’s steel safeguard measures, expressing hope that the new rules will be swiftly adopted.
Additional support, he said, should come from the “Buy Europe” policy, requiring public procurement to source at least 60% of steel from European producers, and the Carbon Border Adjustment Mechanism (CBAM), which aims to shield EU steel from unfair competition.
Escalating US protectionism is reshaping steel trade flows to Europe’s detriment. Gozzi noted that the direct effects of US tariffs on Italian steel have long been absorbed. The Trump administration’s 25% duties on European steel, imposed since 2018, have already reduced Italian exports to the US to less than 1% of national output. With the new 50% tariffs, those exports may disappear entirely.
However, Gozzi’s main concern lies with indirect effects, caused by trade diversion. As high tariffs block exports to the US, non-US producers, particularly China, are expected to redirect their excess output to Europe. He warned that China’s massive overcapacity, especially in steel, poses a growing systemic risk.
Natalia Capra France
