The European Commission yesterday proposed cutting tariff-free steel import quotas by almost half and a 50 per cent duty for excess shipments in a bid to preserve viable steelmaking in the European Union.
Due to rising imports and US tariffs, EU steel producers are operating at only 67pc of capacity and the new measures, in line with those reported by Reuters last week, are designed to push that up towards 80pc.
EU steel is currently protected by safeguards that cap imports of 26 steel grades, with 25pc tariffs above those limits. However, they have steadily risen each year despite declining demand and, under World Trade Organisation rules, must expire in mid-2026.
The Commission is now proposing a tariff-free import volume of 18.3 tonnes a year, down 47pc from 2024 quotas, and a doubling of the out-of-quota duty to 50pc, in line with Canada and the US, though the latter’s tariffs apply from the very first tonne.
The commission said the quota volumes would match imports from 2013, when it says overcapacity began. The measures, which will require approval by EU governments and the European Parliament, will also require importers to show proof of the origin of their steel.
The bloc will also need to enter negotiations with WTO partners, the outcome of which could be tariff-free allocations. Only European Economic Area countries Iceland, Liechtenstein and Norway will be exempt.
Britain, the eighth-largest exporter of steel to the EU, said it was pushing Brussels for urgent clarification. “It’s vital we protect trade flows between the UK and EU and we will work with our closest allies to address global challenges rather than adding to our industries’ woes,” Industry Minister Chris McDonald said in a statement.
Director General of UK Steel Gareth Stace told Times Radio the impact would be devastating.
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