EU, US to form metals alliance to counterbalance Chinese overcapacity
The European Union and United States will develop a metals alliance to mitigate the impact of subsidised Chinese production on global markets as part of their trade deal , European Trade Commissioner Maros Sefcovic said on Monday.Sefcovic said that, in their hours of discussions to reach an agreement, US officials came to realise the US and EU steel sectors faced the same problem. As such, EU steel and aluminium makers will be granted a quota system with minimal or zero tariffs to replace US President Donald Trump's 50 per cent import tariffs. The system is yet to be finalised."The agreement is clear prospect of joint action on steel, aluminium, copper and the derivatives in what I'd like to call a metals alliance, effectively creating a joint ring-fence around our respective economies through tariff rate quotas at historic levels with preferential treatment," Sefcovic told a press conference."It became very, very clear that if it comes to steel and metals we are not each other's problem." he continued.For Europe, finding a way to remove US steel tariffs has become even more urgent as its smelters are losing scrap supplies to US plants. Scrap is a major input in smelters because it is sold at a discount to primary metal and is less energy-intensive to turn into a finished product.The possible alliance and quota system reveal growing momentum to counter Chinese output. At the Group of Seven (G7) nations finance meeting in May, officials agreed to tackle "excessive imbalances" in the global economy without explicitly naming China."I have to say that despite the strenuous efforts of my colleagues and myself and several long meetings with my Chinese counterparts, unfortunately, the list of the accumulated issues on the table will not get shorter, but just grew longer," Sefcovic said, referring to last week's EU-China Summit."Clearly the issue is overcapacity. The issue is linked with what we perceive as illegal subsidies ."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
6 minutes ago
- Economic Times
Gold holds steady ahead of Fed policy statement
Gold prices steadied on Wednesday as investors held back on making big bets ahead of the Federal Reserve's policy statement later in the day for cues into future rate cuts, while focus remained on U.S. trade talks ahead of the August 1 deadline. ADVERTISEMENT * Spot gold was steady at $3,329.19 per ounce as of 0020 GMT. U.S. gold futures rose 0.1% to $3,327.70. * U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of talks in Stockholm. * However, U.S. officials said it was up to President Donald Trump to decide whether to extend a trade truce that expires on August 12 or potentially let tariffs shoot back up to triple-digit figures. * Meanwhile, the U.S. dollar index held steady after hitting a more than one-month high on Tuesday, making greenback-priced bullion more expensive. ADVERTISEMENT * Investors turned their focus to the Fed's policy to gauge its future rate cut path, following the central bank's two-day meeting, during which it is widely expected to keep rates steady, despite Trump's constant call to lower them. * The U.S. trade deficit in goods narrowed to its lowest in nearly two years in June as imports fell sharply, cementing economists' expectations that trade likely accounted for much of an anticipated rebound in economic growth in the second quarter. ADVERTISEMENT * The International Monetary Fund slightly raised its global growth forecasts for 2025 and 2026 on Tuesday, citing stronger-than-expected buys ahead of a jump in U.S. tariffs on August 1 and a drop in the effective tariff rate to 17.3% from 24.4%. * Meanwhile, on Tuesday, Trump threatened tariffs and other measures on Russia "10 days from today" if Moscow showed no progress toward ending its more than three-year-long war in Ukraine. * Spot silver held steady at $38.20 per ounce, platinum fell 0.4% to $1,389.20 and palladium remain unchanged at $1,258.75. DATA/EVENTS (GMT) 0530 France GDP preliminary QQ Q2 0800 Germany GDP flash QQ SA, YY NSA Q2 0900 EU GDP flash preliminary QQ, YY Q2 0900 EU consumer confidence final July 1230 U.S. GDP advance Q2. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
19 minutes ago
- Time of India
US, China tariff truce holds for now, but Trump to have final say
Top officials from the US and China agreed on Tuesday to continue discussions about extending a fragile trade truce that is set to expire in mid-Aug, but did not immediately reach an agreement to avert a potentially destabilising trade war between the world's largest economies. The announcement came after two days of intensive talks in Stockholm, the third formal round of negotiations since President Trump raised tariffs on Chinese goods to triple-digit levels this year, drawing sharp retaliation from Beijing and bringing much of the trade between the countries to a halt. Treasury secretary Scott Bessent, who led the US discussions along with Jamieson Greer, the US Trade Representative, called the talks "constructive" but said the final decision about whether to extend the pause would be made by Trump. Nothing is agreed until we speak with President Trump," Bessent said Tuesday. If Trump approves a tariff pause with China, Bessent said it would likely be for another 90 days. Trump, speaking to reporters on Air Force One on Tuesday, said that he would discuss the situation with his top advisers on Wednesday and "either approve it or not." He appeared to indicate at one point that the talks between the US and China had hit some unspecified road blocks. "I said, 'Oh, here we go again,'" Trump said, before adding, "today it worked out." Stocks wobbled somewhat on news from the talks in Stockholm, as investors worried about renewed trade tensions between Washington and Beijing. Previous rounds of negotiations secured a temporary cessation of hostilities. The two sides met for more than five hours on Monday in the offices of the Swedish PM, in central Stockholm. They reconvened on for another roughly five hours - breaking to have a salad for lunch - on Tuesday. He Lifeng, the vice premier for economic policy, led the talks on behalf of China. China's top trade negotiator, Li Chenggang, also described the talks as constructive, but told reporters in Stockholm after the talks that both sides recognized the importance of maintaining a stable trade relationship. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Time of India
23 minutes ago
- Time of India
LG Energy Solution, Tesla sign $4.3 billion battery supply deal, source says
South Korean battery maker LG Energy Solution (LGES) has signed a $4.3 billion contract to supply Tesla with lithium iron phosphate (LFP) batteries for energy storage systems , a person familiar with the matter said on Wednesday. The batteries will be supplied from LGES's U.S. factory, the person said on condition of anonymity because the details were not public. Explore courses from Top Institutes in Please select course: Select a Course Category Data Science PGDM Leadership healthcare Artificial Intelligence Data Science Digital Marketing Management MBA Data Analytics Cybersecurity others Project Management Design Thinking MCA Product Management Technology Public Policy Healthcare Finance CXO Others Degree Operations Management Skills you'll gain: Duration: 30 Weeks IIM Kozhikode SEPO - IIMK-AI for Senior Executives India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIT Madras CERT-IITM Advanced Cert Prog in AI and ML India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK DABS India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Postgraduate Cert in AI and ML India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Prof Cert in DS & BA with GenAI India Starts on undefined Get Details LGES said earlier on Wednesday that it had signed a $4.3 billion contract to supply LFP batteries over three years globally, without identifying the customer. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Here's What A New Gutter System Should Cost You In Crown Point HomeBuddy Click Here Undo The announcement by the company, whose major customers include Tesla and General Motors, did not say whether the LFP batteries would be used in vehicles or energy storage systems. "In accordance with our agreement, we are unable to disclose the customer's identity due to confidentiality obligations," LGES told Reuters. Tesla did not immediately respond to a request for comment. Live Events The deal comes amid a scramble by countries and companies globally to strike tariff agreements with Washington and after South Korea's Samsung Electronics and Tesla this week announced a $16.5 billion chip supply deal . The LFP battery contract lasts from August 2027 to July 2030. LGES said it included an option to extend the deal period by up to seven years and to increase supply volumes depending on discussions with its customer. LGES is one of the few U.S. producers of LFP batteries, a battery chemistry long dominated by Chinese rivals that have little presence in the U.S. market. It started production of LFP batteries at its Michigan factory in May.
