The European Union and the U.S. will form a "metals alliance" to counter the impact of subsidised Chinese production on global markets, as part of their ongoing trade deal, EU Trade Commissioner Maros Sefcovic said Monday.

Following extensive talks, both sides agreed that their steel and aluminium sectors face a common threat. Under the deal, EU metal producers will receive tariff-free or low-tariff access to U.S. markets through a quota system, replacing former 50% tariffs imposed under President Trump.

The system is still being finalized. "It became very, very clear that if it comes to steel and metals, we are not each other's problem," Sefcovic said. He described the pact as a "clear prospect of joint action" covering steel, aluminium, copper, and related products.

The move signals a broader effort to address China's overcapacity and "illegal subsidies," which were also discussed at the recent EU-China Summit and G7 meeting, where concerns over global imbalances gained traction.

Source: Trading Economics