Steel and automotive industries face rising trade protectionism

The steel and automotive industries are facing significant shifts due to trade protectionism and competition from China. In Peru, domestic manufacturers are warning of the negative impacts caused by delays in antidumping investigations. A recent case involving hot-rolled steel tubes from China saw a resolution only after an 18-month investigation period, during which Chinese imports rose by 94.7% and domestic prices fell by 16.5%. Industry leaders are calling for more agile responses to prevent the loss of production lines and jobs, noting that nine other trade defense cases remain pending.

In Europe, discussions are intensifying regarding the potential introduction of tariffs to protect the automotive sector from Chinese overcapacity. The European Union, potentially alongside the United Kingdom, Japan, and South Korea, is considering measures to safeguard its car manufacturers. While these protections could benefit the European steel industry by sustaining demand—as the automotive sector accounts for approximately 20% of steel consumption and over a third of the sector's profits—there are concerns that higher steel costs could squeeze manufacturer margins and increase consumer inflation.