EU to slash steel import quotas over dumping fears after US tariffs
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The news: The European Union will tighten steel import quotas from 1 April, reducing inflows by 15% to prevent cheap steel flooding the market after Donald Trump’s new tariffs.
The context: The move, Reported by Reuters citing an EU official, comes after the US imposed a 25% tariff on steel and aluminium imports, making its market less viable for exporters from Canada, India, and China.
The EU is introducing measures to protect its industry as steelmakers fear the bloc could become a dumping ground for cheap steel.
The European Commission is expected to introduce new trade measures under its European Steel and Metals Action Plan to support the industry. A draft of the plan seen by Reuters showed the EU was considering import restrictions.
European Commission Vice-President Stephane Sejourne said the first step would be reducing steel import quotas by 15% from 1 April. Imports within the quotas follow established trade flows and remain tariff-free, while those exceeding the limits will face a 25% tariff.
A "melted and poured" rule included in the plan will stop importers from changing the metal’s origin through minimal transformation, Reuters said.
The Commission will then propose new measures in the third quarter to replace the safeguards, which cannot be extended beyond June 30, 2026, Reuters reported.
Public procurement rules are also expected to be revised in 2026 to favour European steel, and a pilot program with the European Investment Bank scheduled to be announced in 2Q 2025 will prioritise steel and aluminium producers for long-term power contracts.
The numbers: Since July 2019, quota volumes have increased by over 25% in line with WTO rules. In 2024, the EU imported about 60 million metric tons of steel, with 30 million within tariff-free quotas.
What they said: “During a period when nobody is respecting WTO (World Trade Organization) rules and everyone refers to national security... the EU can't be the only continent that lets its industry fall apart," European Commission Executive Vice-President Stephane Sejourne told Reuters.
"We also have the challenge to anticipate future tensions, wars and pandemics and we saw what happened in the past with Russian gas ... Let's avoid that steel tomorrow becomes the gas of yesterday," Sejourne added.
"We want to keep our steel in Europe and be able to recycle in Europe," Sejourne said. "It's a strategic issue. There is no defence industry without steel, there is no automobile without steel and we want to keep our industries."
The source: Reuters
