EU to Cut Steel Import Quotas, Raise Tariffs to 50%

The European Union (EU) is preparing to cut nearly half of its steel import quotas and impose tariffs of up to 50% on volumes exceeding those limits, according to two industry sources and information from the European Commission. The proposal, expected to be announced on October 7, is aimed at protecting Europe’s steel sector against mounting global oversupply.

Reasons Behind the Move

The EU’s existing “safeguard” measures on steel imports remain in place but are set to expire in mid-2026 unless extended. European steelmakers have repeatedly called for a reduction in quotas — which are currently 26% higher than the original level — and for tariffs to be raised from 25% to 50%.

The main objective is to curb imports of low-cost steel from heavily subsidized producers, particularly in China, at a time when global oversupply is projected to reach 721 million tonnes by 2027.

Alignment with the US and Canada

Raising tariffs to 50% also aims to align EU trade policy more closely with the United States and Canada. EU officials expect this step to support bilateral trade arrangements, including potential U.S. plans to replace high tariffs with import quotas.

In addition, the EU is pushing for a “metals alliance” with the United States to safeguard domestic industries from cheaper foreign steel.

Consultations and Impacts

European Commission Vice President for Industrial Strategy, Stéphane Séjourné, has met with steel associations and labor unions to discuss the proposal ahead of its official release.

According to sources, the EU is also considering applying similar measures to aluminum imports, as well as export duties on scrap metal.

Original Source: Reuters — October 1, 2025.