EU unveils plan to double steel tariffs and reduce quotas
Replacing the European Commission with its current steel import protection measures will see duty-free volumes reduced by 47% and above-quotas, quotas, tariffs raised by 50% if approved.
Information about the proposed EU trade protection measures for steel was made public at a press conference organized by the European Commission Executive Vice President Stephane Séjourné and Commissioner Maros Sefcovic yesterday (October 7) in the afternoon.
These measures are due to enter into force on July 1, 2026, and are valid until July 2031, with an interim review scheduled no later than July 2027. However, they must first receive the approval of the European Parliament and the Council of Ministers.
Overview of new measures
Key measures proposed under the new trade protection measures include:
- Reduction of annual duty-free quotas on steel imports by 47%, from 33 million tons to 18 million tons. This would lead to a reduction in the import market share to 13%.
- An increase in the tariff rate exceeding the quota from 25% to 50%.
- The requirement for importers to disclose information about the place of "melting and casting" of all materials from third countries.
- Termination of the transfer of unused steel import quotas from one quarter to another.
- The possibilities of the European Commission to supplement the list of affected goods.
The documentation published by the Commission states that the allocation of quotas in accordance with the new tariff quota system for specific countries will be confirmed later.
Initial information indicates that all categories of steel products covered by the current protective measures will face quota reductions and tariff increases, while other "steel-derived products" may be added later.
These changes align the EU more closely with trade protection measures recently adopted in the United States and Canada.
Sejourné said that tougher EU trade protection measures for steel were necessary to protect the EU from a global steel capacity glut. According to forecasts, by 2027 this figure will reach 721 million tons, which is five times higher than the current level of consumption in the EU.
He said: "The revised system is aimed at combating global steel production oversupply and unfair competition."
Sejourneh insisted that the new measures would comply with WTO rules. However, the transition from a temporary safeguard measure to a long-term trade protection instrument fundamentally changes the EU's position in the field of international trade law. Since these new tariffs are no longer used as defensive measures, they open up the possibility for other countries to introduce similar countermeasures against steel exports from the EU.
This creates significant diplomatic and