EU tightens steel import quotas to protect local industry from US tariffs

The European Union plans to tighten steel import quotas, cutting inflows by an additional 15 per cent starting in April, in a move that aims to prevent an influx of cheap steel into the European market following Washington’s decision to impose new tariffs.

European steel manufacturers, already struggling with high energy costs and competition from Asia and beyond, warn that the EU risks becoming a dumping ground for steel redirected from the US, potentially endangering local production, Caliber.Az reports via foreign media.

“At a time when no one is following WTO (World Trade Organization) rules and everyone cites national security... the EU cannot be the only region allowing its industry to collapse,” European Commission Executive Vice-President Stephane Sejourne told Reuters.

With the US market becoming less viable due to a 25% tariff imposed under President Donald Trump’s administration, Sejourne predicted that steel producers from Canada, India, and China would increasingly target Europe for exports.

The Commission is set to introduce a series of trade measures on March 19 designed to support the struggling metals industry as part of a new European Steel and Metals Action Plan. A draft of the plan, reviewed by Reuters earlier this week, indicated that the EU was considering import restrictions.

Sejourne, responsible for shaping the bloc’s industrial policy, stated that the first step would be reducing steel import quotas, known as safeguards, for several steel categories starting April 1, effectively cutting inflows by around 15 per cent.

The quota system permits tariff-free imports based on established trade levels, while imports exceeding the quota will face a 25 per cent tariff. Since July 2019, quota volumes have risen by over 25 per cent in compliance with WTO regulations.

In 2024, the EU imported roughly 60 million metric tons of steel, with 30 million tons falling within the duty-free quota.

By Nazrin Sadigova