EU to halve steel import quotas to preserve industry
In order to maintain sustainable steel production in the European Union, the European Commission has proposed reducing tariff-free steel import quotas by almost half and imposing a 50 percent tax on excess shipments.
Due to rising imports and US tariffs, EU steelmakers are operating at only 67 percent of their capacity, and new measures in line with what Reuters reported last week are designed to increase that capacity to 80 percent.
EU steel is currently protected by safeguard measures that limit imports of 26 steel grades and impose 25 percent tariffs above these limits.
However, despite decreasing demand, they are increasing steadily every year, and according to World Trade Organization rules, these periods should end in mid-2026.
The Commission currently proposes an annual duty-free import volume of 18.3 metric tonnes, a 47 percent reduction from 2024 quotas, and a doubling of the non-quota duty to 50 percent, in line with Canada and the United States; However, US tariffs apply from the first ton.
The commission said quota volumes would match imports in 2013, when overcapacity began.
The measures, which must be approved by EU governments and the European Parliament, will also require importers to show evidence of the origin of their steel.
Axel Eggert, chief executive of European steel association Eurofer, said the measures would reduce imports to a 15 per cent market share, a vital step the industry has been seeking and potentially save hundreds of thousands of jobs.
The bloc will also need to enter into negotiations with its WTO partners, which could result in tariff-free allocations.
Only the European Economic Area countries Iceland, Liechtenstein and Norway will be exempt.
Britain, the EU’s eighth-largest steel exporter, said it was pressing Brussels for an urgent statement.
“It is vital that we protect the flow of trade between the UK and the EU and we will work with our closest allies to find solutions to global challenges rather than adding to the woes of our industries,” Industry Minister Chris McDonald said in a statement.
UK Steel Managing Director Gareth Stace told Times Radio the impact would be devastating.
The countries that exported the most steel to the EU in 2024 were Türkiye, India, South Korea, Vietnam, China, Taiwan and Ukraine.
The new system could help secure an agreement with the United States to replace 50 percent tariffs with a quota system, as outlined in the US-EU agreement at the end of July.
The EU hopes that like-minded partners will cooperate to find a solution to the problem of excess capacity, which may require limiting their production, especially from China.
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