The European Commission is planning some retaliation and safeguards for its aluminum and steel industry, Reuters reports.

• To launch investigation on possible safeguard measures to counter US steel/aluminum tariffs
• Aims to propose carbon border levy ant0circumvention measures
• To extend scope of steel, aluminum-intensive downstream products
• Plans to propose amendment to carbon border levy
• Planning to propose export restrictions and duties on European scrap steel and metals in Q3

It’s difficult to figure out the end game on US steel/aluminum as there isn’t enough capacity in the US and I don’t see anyone lining up to build it, particularly given where US steel company stocks trade.

This article was written by Adam Button at www.forexlive.com.