EU-US Steel Alliance Proposal Unfolds: A Potential Partnership Between Maroš Šefčovič and Joe Biden to Address Overcapacity
Published on 5.22.25
The European Union (EU) is exploring a potential alliance with the United States to address overcapacity in the steel sector, a move that could have far-reaching implications for the global economy. This shift in global trade dynamics comes as no surprise, given the ongoing tensions between the US and EU on issues such as tariffs and trade policies.
The proposed alliance aims to address overcapacity in the steel sector, a problem that has plagued the industry for years. According to Maroš Šefčovič, the EU's trade chief, the partnership would also enable cooperation on sensitive technologies like artificial intelligence (AI) and semiconductors. This is seen as a strategic move by both parties to reduce dependence on critical minerals and promote economic growth.
The alliance has been welcomed by French President Emmanuel Macron and US President Joe Biden, who see it as a step towards strengthening economic ties between their countries. However, the success of this initiative remains uncertain, given the complex web of trade agreements and tariffs that currently exist between the two parties.
A negotiated solution is needed before a temporary truce lapses in early July, at which point tariffs imposed by Trump could increase to 20% on European goods. The EU's trade chief plans to discuss the issue further with US Trade Representative Jamieson Greer at an OECD meeting in Paris in June.