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The EU plans to halve the steel import quota and increase tariffs

The European Commission will propose reducing the steel import quota by nearly half, in line with the tariffs applied by the US and Canada, and raising tariffs to 50% on volumes above these levels.

The EU plans to halve the steel import quota and increase tariffs

These measures will be part of the new steel package, expected to be officially announced on October 7. Stephane Sejourne, the European Commission’s Vice President responsible for industrial strategy, briefed steel associations on Wednesday ahead of next week’s announcement.

The bloc’s current steel protection measures are set to expire on June 30 next year. The EU and its Western allies are trying to control the excess capacity created by subsidized Chinese factories in steel and other sectors.

Since April 1, the EU has tightened the existing steel import quota by 15%, and the Commission is studying market trends regarding potential aluminum safeguards as well as export duties on scrap metal.

Steel became a focus earlier this year after US President Donald Trump raised tariffs on foreign steel and aluminum imports to 50%. Following a general trade agreement reached with Trump at the end of July, the EU announced it would work closely with Washington within a “metal alliance” to protect its own production from China.

European steel producers now face a 50% export duty to the US.

Source: Reuters

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