EU steel tariffs: European Commission plans higher duties; aim to protect local producers
The European Commission is expected to unveil a permanent plan next week, which will also slash the EU’s existing steel quotas for foreign steel by nearly 50%, EU industry chief Stephane Sejourne said, according to a source cited by Bloomberg.Under the new system, imports above the reduced quotas will face higher tariffs, similar to the US, which currently charges a 50% duty on imported steel.At present, the EU operates a temporary safeguard that imposes a 25% tariff once quotas are exceeded.
That arrangement is due to expire next year, prompting the Commission to design a more lasting solution to replace it.The move comes as EU leaders meet in Copenhagen to discuss boosting the bloc’s defence capabilities.“Our reality today and tomorrow is security and security means armaments and armaments means steel,” Polish PM Donald Tusk said.
“We have to protect our companies, our steel companies in Europe and in Poland,” Bloomberg quoted Tusk as saying.Europe’s steel industry has been under pressure for years from cheap imports from China and other Asian countries, which was further intensified by the US raising steel and aluminium tariffs to 50% shortly after Donald Trump took office.Sejourne added that while the EU supports free international trade, “we will not be the only ones to impose on ourselves the principles that others no longer apply,” according to someone familiar with his remarks.The proposal coincides with discussions on stricter EU climate targets for 2040, which could add further strain on energy-intensive industries such as steel, according to Bloomberg.Europe’s steel body, Eurofer, has called for stricter measures to match changing market conditions and urged a full post-2026 trade framework to tackle the harmful impact of global steel overcapacity on the EU market. “This is the first real measure to support our sector, and support quality jobs in Europe,” said director general Axel Eggert.
“But there needs to be more.”
