The European Union has taken decisive action by imposing trade sanctions on Morocco, introducing countervailing duties on imports of aluminum wheels from the kingdom. Announced by the European Commission on March 14, 2025, this move aims to shield the European industry from what the EU deems unfair trade practices.
Why the EU Imposed Trade Sanctions on Morocco
The new trade sanctions stem from an EU investigation that uncovered “Moroccan aluminum wheel imports benefiting from subsidies incompatible with World Trade Organization (WTO) rules,” according to a European Commission statement. These subsidies include preferential-rate loans, tax breaks, and other direct government support to Moroccan producers.
The probe revealed that Morocco’s government systematically propped up its automotive sector—particularly aluminum wheel exports—through direct subsidies like low-interest loans, grants, and tax reductions. This assistance enabled Moroccan producers to sell their products at abnormally low prices, creating unfair competition in the European market.
Economic Sanctions to Counter Unfair Practices
In response, the EU has slapped countervailing duties on Moroccan aluminum wheel imports, ranging from 5.6% to 31.4%, depending on the level of subsidies received by individual producers. The highest rate applies to a producer benefiting from both Moroccan subsidies and financial contributions from China.
These measures build on anti-dumping duties already in place since January 2023, which range from 9% to 17.5%. Additionally, anti-dumping duties target aluminum wheel imports from China, further safeguarding Europe’s industry from unfair competition. The EU is clearly leveraging its trade defense tools to protect its market and strategic sectors from practices that disrupt global trade balance.
Broader Implications: Morocco-China Ties Under Scrutiny
The decision also highlights EU concerns over external influences in its industrial sector, particularly the growing Morocco-China cooperation. By strengthening its trade protections, the European Union aims to ensure fair conditions for all economic players, signaling a firm stance against subsidized imports and unfair market distortions.
