US Steel Proclamation: Statements by President von der Leyen and EU Commissioner Šefčovič

Madame President,

Honourable Members of the European Parliament.

Europe faces an increasingly complex world, marked by – among other things – rivalry and unpredictability that impacts our trade relations around the world.

In the EU, we know that challenging times call for more multilateral governance and rules-based international cooperation – not less.

This is why the EU remains committed to championing rules-based trade, with the revitalised World Trade Organization at its core.

This is of clear economic interest, as we conduct 55% of our external trade under the WTO’s Most Favoured Nation rules.

At the same time, we must ensure the system is fit to tackle today’s pressing challenges.

This includes industrial policies, overcapacities and a global level playing field as well as climate change and the digital transition.

Trade – like any business – thrives on predictability and fair rules. So, such revitalisation is key to rebuilding trust and restoring collaboration between trading partners – and ultimately, key to the effectiveness of the WTO.

After all, trade is the engine – if not the essence – of multilateralism.

Beyond the WTO, the G7 and the G20 remain highly relevant for exchanging with our partners, and addressing the tensions and frictions that affect open and rules-based global trade.

The OECD also plays an important role in supporting multilateralism and international cooperation.

Moreover, on issues that are particularly important to the EU, we are creating new structures for multilateral cooperation.

For example, the Minerals Security Partnership Forum, which the EU co-chairs.

Or the Coalition of Trade Ministers for Climate, also co-led by the EU.

We will continue to make the best use of all these fora.

Because, as President von der Leyen said recently: it is in no-one’s interest to break the bonds in the global economy.

So, we will keep all lines of communication open.

And I can assure you that the EU is prepared to face up to any challenges this new era will bring in the field of trade.

Our fast-growing network of trade agreements – the world’s largest, consisting of some 44 preferential trade agreements with 76 countries – connects our Single Market with markets around the globe, and gives our businesses the opportunity to grow, innovate, and compete.

And we continue to expand this network even further: as you know, we finalised negotiations for the EU-Mercosur Partnership Agreement late last year, as well as for the update of our relationship with Switzerland.

A few weeks ago, we concluded talks to modernise the EU-Mexico trade agreement, and relaunched negotiations with Malaysia.

There is clear momentum.

Many third countries are seeking continuity, stability and predictability in their trade partners. So they turn to us.

Our economy is one of the world’s most open, a fact reflected in our high level of trade-to-GDP ratio of 45%.

Trade not only provides our businesses with new export opportunities, but it also guarantees access to critical inputs for the European economy – two thirds of all inputs for production come from outside the EU.

Therefore, we continue full steam ahead with trade negotiations with India, Indonesia, Thailand, the Philippines, and others.

And we are looking into the possibilities for deepening trade ties with the Gulf countries.

We are also working on new, tailor-made forms of engagement that will contribute to our overarching objective – boosting the EU’s global competitiveness.

These include Trade and Technology Councils, Sustainable Investment Facilitation Agreements, digital trade agreements, and the pioneering Clean Trade and Investment Partnerships.

One thing remains the same, however: we seek mutually beneficial partnerships, centred around stability, fairness, and sustainability.

This sets us apart, and is an increasingly strong selling point.

At the same time, whenever needed, we will protect our openness, our industry, and our Single Market.

This brings me to the EU’s economic security – another imperative in today’s world of stark competition.

First, we are strengthening the tools at our disposal, while also ensuring their effective use.

This includes the revision of the FDI screening regulation as well as moving towards an ‘EU-approach’ on dual-use export controls and outbound investments.

Second, under the European Economic Security Strategy, we are assessing key risks to our economic security.

An in-depth understanding of these threats will inform our mitigating measures, all to be crafted in a proportionate and targeted manner.

And ultimately, we will develop a ‘doctrine’ on the use of our economic security tools, to ensure they are deployed when needed in a coordinated and consistent way.

Third, we are engaging on economic security both in a G7+ format and bilaterally.

Further strengthening ties with partners who want to cooperate to address the risks we face is of key importance, especially in the geopolitics of today.

Now turning to our relations with the United States.

Unfortunately tariffs came back overnight. The President of the United States signed a Proclamation imposing 25% tariffs on all steel and aluminium imports into the U.S. as from 12 March. He has also announced reciprocal tariffs on other products coming this week.

We deeply regret these decisions and announcements. The EU sees no justification for the imposition of tariffs on our exports, which is economically counterproductive.

Especially given the deeply integrated production chains, established through our extensive transatlantic trade and investment ties.

Tariffs are taxes; bad for business, worse for consumers.

By imposing tariffs, the US will be taxing its own citizens, raising costs for its own business, and fuelling inflation.

In addition, tariffs are not only harmful for the trading partners directly involved, but also risk having disruptive effects for many others, as well as the global trading system as a whole.

Put simply: it is a lose – lose scenario.

As I said last time I was here: we will always protect our interests from unjustified measures, in line with our values.

This time has come. We are currently assessing the scope of the measures announced overnight and will be responding in a firm and proportionate way by counter measures.

We will act to safeguard our economic interests, we will protect our workers, businesses and consumers.

This is the way to protect the European interest but it is not our preferred scenario. We remain committed to constructive dialogue. We stand ready for negotiations, and to find mutually beneficial solutions where possible.

There is a lot at stake for both sides. We want to make it work, not least because it simply makes sense.

Thank you.

Source – EU Commission

(Work in progress)