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Tata Steel Europe: Europe Needs Appropriate Measures Against Steel Tariffs

"We need appropriate measures against a negative influence on the European market,"

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One of the blast furnaces of the Tata Steel plant is seen at sunset in Port Talbot, South Wales, May 31, 2013. VOA

India’s Tata Steel is concerned about U.S. plans to impose tariffs on steel imports, a senior executive at the group’s European unit said on Wednesday.

“We need appropriate measures against a negative influence on the European market,” Henrik Adam, chief commercial officer at Tata Steel Europe, told an industry conference. “We believe in fair, free trade.”

ALSO READ: India’s Steel Makers: New policy for Domestic Steel Sector plans to treble India’s steel production capacity by 2030

tata steel
President Donald Trump announced last week he would impose hefty tariffs on imported steel and aluminum to protect U.S. producers, risking retaliation from major trade partners like China, Europe and neighboring Canada. Wikimedia Commons

Adam said it was still unclear what exactly the tariffs would look like but warned there was a risk that the European market might be forced to absorb imports originally meant for the U.S. market as a result.

ALSO READ: UK’s Indian Origin Steel Tycoon Sanjeev Gupta to Create 300 New Jobs in a steel division formerly owned by Tata Steel

Adam said the U.S. market was relevant for Tata Steel Europe, which is currently working on merging with the European steel business of German rival Thyssenkrupp, adding it makes about half a billion euros of annual sales there.

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Trump views 50 years out of date, may trigger disruptive trade war: Paul Krugman

According to him, immediate issue is going to be confrontation not with China, but with Europe as the "steel tariffs" will hit Europe

human rights
Trump is not taking his responsibilities seriously: Paul Krugman. Wikimedia Commons
  • Paul Krugman criticises U.S. President Donald Trump
  • Paul Krugman is a Nobel Prize winner
  • Paul says Trump’ actions can cause a war

Criticising the US President Donald Trump for his protectionists policies, Nobel Laureate Paul Krugman on Saturday accused President Trump of not taking his jobs seriously. Following the protectisists measures taken by the US President, there could be “risks of disruptive trade war”, he said.

President Donald Trump has pledged to avoid any new foreign business deals during his term in office.
President Donald Trump is heavily criticised. Wikimedia Commons

“He does not take the job seriously. He doesn’t say to himself that I am the most important official in the world; I have better do my homework for understanding the issue. ..He just goes that these are my gut feeling and hires people who make him feel good…that is a frightening prospect,” Krugman said responding to a query on his perception on Trump. On the economic issues President Trump’s gut feelings are “protectionist” and his views of America were “50 years out of date”.

“He wants America a heavy industrial country in the way it was when he was a young man. That is not just going to happen but he attempts to make it happen, which is extremely disruptive to America and to the global as a whole,” Nobel Laureate said. Krugman said he was until recently optimistic that Trump’s protectionist policies would not see the light of the day.

“Until about two weeks ago, I was quite optimistic that it would not happen. The reason was not because the President would get good economic advice but because the US businesses are invested in a globalised economy. All the investments the businesses have made is based upon the assumptions that the open trading system would continue. There is an enormous amount of fiscal capital and a large number of jobs are dependent on these value chains,” he said at the News18 Rising India Summit here.

Also Read: Trump Not Backing Down on Steel, Aluminum Tariffs

Krugman further said: “I had assumed the influence of these business communities would be sufficient… that it would not happen. I am less optimistic now…we have seen reasonably sensible Economic Council Head was fired, completely irrational tariff (was) imposed on steel and aluminium.”

The President also called for more mental institutions and hospitals in addition to the idea of arming teachers.
Krugman says these actions of President can cause a trade war. Wikimedia Commons

According to him, immediate issue is going to be confrontation not with China, but with Europe as the “steel tariffs” will hit Europe. He said there are possible risks of “disruptive global trade war”.

Speaking on Chinese economy he said, “China is a financial crisis waiting to happen. China is a widely unbalanced economy…the country is sustaining itself with a credit bubble that is waiting to burst…There is a significant risk of Chinese bubble burst.”

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