The sustained 50% tariff on steel and aluminum imports by the United States is causing growing concerns in the European carbon market. Experts warn that this protectionist move could weaken the competitiveness of European exports and reduce the incentive for greener steel production. As EU producers face difficulties in selling into the US market, demand for EU Allowances (EUAs) may also decline, impacting carbon prices.
The European steel sector has been working toward decarbonization, investing in low-carbon technologies and participating in emissions trading systems. However, tariffs like these not only strain trade relations but may also delay investment payback for green transitions. If export opportunities dwindle, some companies might slow down or reconsider their environmental upgrades.
With ongoing global policy shifts, the EU may need to rethink how to support domestic industries while balancing its green agenda. This includes strengthening internal demand and possibly expanding financial support mechanisms to avoid unintended consequences of foreign tariffs on EUAs and decarbonization timelines.
Vietnam Steel by Hoa Sen Group
