MEP Winkler: US aluminum and steel tariffs deepen crisis of EU and Romanian industry

 The 25% tariffs imposed by the U.S. on aluminum and steel imports from the European Union are actually deepening the crisis of the European and Romanian steel industry, because this crisis stems primarily from energy prices, MEP Iuliu Winkler, a member of the European Parliament's EPP Group, declared on Wednesday in Strasbourg."Romania is affected in three ways. There's the direct production, direct steel or aluminum exports to the United States, and we have indirect effects. I think that last year Romania's steel exports amounted to about 500 million dollars. I don't know what product exports amount to, if we expand this list, there's another discussion, but adding an extra 25% to the costs comes to deepen the crisis both the European Union's and Romania's steel industry is entrenched in," said Winkler, who is Vice-Chairman of the EP's International Trade Committee.In a dialogue with Romanian journalists, Winkler explained that this crisis is caused primarily by energy prices."Energy is about three times more expensive in Europe than in the United States, and that ends the whole idea of European competitiveness. We keep talking about measures taken by the European Parliament, by the plenary, and in the standing committees, the industry committee, we keep looking for measures but for now I don't see us having found the solution. For now there is much debate, but few measures," explained the MEP.On the other hand, he noted that the effects the tariffs on aluminum imports will have on Romania will be less severe, "because Romania's aluminum industry is dying anyway.""I had recent meetings with representatives of Targu Mures industrial producers, for example on chemical fertilizers, but it's the same story as with aluminum, because energy accounts for a large chunk in the price of these products, both for aluminum and for chemical fertilizers, and regrettably we see that we are incapable to find solutions. Yet as far as the impact of the tariffs is concerned, we cannot speak of a major effect, because the trade figure is extremely low, (...) there's nothing to discuss here, whether these exports are maintained or they disappear," said Iuliu Winkler.Speaking of the indirect effects of the American tariffs, he explained that they are difficult to anticipate."Romania's main foreign trade partners are Germany and several other EU member states, such as Italy and France. These are our partners. It goes without saying that when the list of products subject to 25% tariffs expands to various components, various devices, equipment and so on, all of which also contain certain subassemblies delivered from Romania along these extremely complex supply chains, then the impact on the Romanian economy also extends to companies one may not expect there, or that are currently under the radar," said the Vice-Chair of the EP's INTA Committee.He also noted that an analysis by the Romanian Foreign Trade Department, but also by the Ministries of Economy and Industry is needed to assess what could happen."Anyway, these are some undesirable consequences, these are some undesirable effects that find us in a situation where it is vital for Romania to reduce its budget deficit, as it committed to through the 2025 budget, from that almost 9% that makes us extremely vulnerable, to 7% in the first stage and then, in the following years, according to the agreement with the European Commission, by a gradual reduction phased out over six years to 3%, as per the Maastricht Treaty requirements," he explained.Iuliu Winkler remarked that the moment is all the worse since Romania's economic situation is "currently extremely fragile" and occurs in the context of new measures being slated to increase defense investments.Asked when will the shockwave of the aluminum and steel tariffs and their ripple effect to products with such alloy components really hit Romania, Winkler again stated that it is difficult to predict."It's difficult to say, because, maybe you saw, the measures came into force last night at 0:00, the 25% tariffs for the existing list, and the deadline given to carriers was to complete the customs documents by four in the morning, if I am not mistaken. So it was an extraordinarily tight deadline at a time when you may be in the port, but then again you may be a few hundred miles from an American port, and these changes happen while you are en route," declared the EPP MEP.He added that he hopes that the desire to dialogue with American partners will be successful "in convincing at least the administration's economic and commercial representatives that these measures are mutually disadvantageous, that they actually kill a commercial, economic and investment relationship that is extremely important, strong and well-functioning today.""If the dialogue with the American administration in the next one or two months fails, a global effect will build up. So, mind you, we are not discussing just the US-European Union relationship, we are discussing the fact that the neighbors of the United States - Canada, Mexico, are also subject to such tariffs and the suspension of these duties can end at any time," the MEP said, concluding that things remain in limbo.