“The agreement is clear prospect of joint action on steel, aluminum, copper and the derivatives in what I’d like to call a metals alliance,” said Šefčovič. While the system is yet to be finalized, the possible agreement suggests that EU steel and aluminum makers will be given a quota system with minimal or zero tariffs, reported Reuters. 

Šefčovič said that U.S. officials and the EU steel sectors realized they faced the same problem regarding Chinese steel. “It became very, very clear that if it comes to steel and metals we are not each other’s problem,” he said. 

Reuters reported that finding a way to remove U.S. steel tariffs has become more urgent for Europe as its smelters lose scrap supplies to U.S. plants. The possible quota system follows the Group of Seven nations finance meeting in May where officials agreed to address “excessive imbalances” in the global economy. 

While the EU met with its Chinese counterparts, the list of issues only grew longer. “Clearly the issue is [Chinese] overcapacity. The issue is linked with what we perceive as illegal subsidies,” said Šefčovič.