EU proposes tougher steel tariffs in bid to protect industry

[large bowl of molten metal at a steel mill. Steel production.]
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The European Union has proposed sweeping new trade measures aimed at protecting its steel industry from cheap imports, particularly from China.

The European Commission on Tuesday announced plans to impose a 50% tariff on steel shipments exceeding new import quotas, which will be reduced by about 45%. Under the plan, only around 10% of steel used in the EU would be exempt from duties.

EU officials said the move is designed to counter a flood of subsidized Chinese products, high energy costs, and weak domestic demand that have put the continent’s steelmakers under pressure. The measures would also bring Europe’s tariff levels closer to those of the U.S., which applies a 50% duty on most foreign steel and aluminum. Brussels hopes the tougher stance could revive stalled talks with Washington on a joint strategy to target Chinese overcapacity.

EU trade chief Maros Sefcovic said the bloc’s intent is to show the United States that “we are not each other’s problem,” and industry commissioner Stephane Sejourne described the proposal as an unusually restrictive measure for Europe.

The new regime would replace temporary 25% tariffs that expire next year, setting annual quotas of 18.35 million tons based on historical averages. Eurofer, the European steel association, welcomed the plan as a “major step” toward safeguarding the sector.

The rules must still be approved by EU governments and Parliament. The Commission insists the plan complies with WTO standards and will negotiate country-specific quotas with affected partners.

The United Kingdom, which sells about two-thirds of its steel exports to the EU, faces particular strain. Britain’s steel industry has already been weakened by the closure of its last virgin steel plant, and London recently abandoned efforts to persuade Washington to roll back its own 25% levy on U.K. steel. Still, Sefcovic said Britain would retain market access under an agreed quota.

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