EU Proposes New Steel Tariffs to Protect Industry, Targeting China
The European Union has proposed new trade measures to safeguard its steel industry, primarily targeting cheap imports from China. The EU hopes these tougher stance could revive talks with the U.S. on a joint strategy to tackle Chinese overcapacity.
The new regime would replace temporary 25% tariffs, setting annual quotas of 18.35 million tons based on historical averages. Shipments exceeding these quotas will face a 50% tariff, reduced by about 45%. The EU aims to counter a flood of subsidized Chinese news, high energy costs, and weak domestic demand affecting its steelmakers.
The EU plans to negotiate country-specific quotas with affected partners, ensuring compliance with WTO standards. The rules must still be approved by EU governments and Parliament. The UK, a significant steel exporter to the EU, faces particular strain due to the new measures. Around 10% of steel used in the EU would be exempt from duties under the new plan.
EU trade chief Maros Sefcovic stated that the bloc wants to show the U.S. that 'we are not each other's problem'. The EU hopes these new trade measures will help revive talks with the U.S. on a joint strategy to target Chinese overcapacity, ultimately protecting the EU's steel industry.
