According to a report by Reuters, the EU is preparing to cut steel import quotas and double tariffs on excess volumes to 50 percent, a move aimed at protecting the EU steel industry from global overcapacity and subsidized imports, particularly from China. The new measures, expected to be unveiled on October 7, will bring EU trade policy closer to the trade policies of the US and Canada.
Accordingly, the European Commission will propose cutting import quotas by nearly half and raising tariffs on volumes above quota levels to 50 percent - up from the current 25 percent. The initiative is part of a broader steel industry support package that will be officially presented in early October.
At a press briefing, Henrik Adam, president of the European Steel Association (EUROFER), said that Commissioner Stéphane Séjourné had reassured steel associations and unions that their concerns were understood, though he did not share policy details.
Current quotas
Steel imports into the EU are currently managed under safeguard quotas, which will expire in mid-2026 under WTO regulations. Steel producers argue that existing quotas are already 26 percent above original levels imposed in 2019, despite falling demand, leaving the industry vulnerable.
Alignment with US and Canada
The proposed measures would bring EU tariffs in line with Canada and the United States, although the US applies its 50 percent tariff from the first ton imported.
Global steel overcapacity challenge
According to the OECD, global excess capacity is projected to reach 721 million mt by 2027, driven mainly by Chinese state-subsidized production. EU policymakers see the quota and tariff changes as vital to ring-fencing European steel capacity.
EU-US “Metals Alliance”
Trade Commissioner Maroš Šefčovič recently met US Trade Representative Jamieson Greer in Asia to advance talks on a transatlantic metals alliance. The initiative would coordinate trade defenses and protect domestic industries from the fallout of global oversupply.
Additional measures in discussion
The European Commission is also investigating:
- Potential aluminum safeguards to curb market distortions.
- Export duties on scrap metal, aimed at securing raw material availability for European steelmakers.