The European Commission announced measures on Tuesday to limit tariff-free steel imports into the European Union to protect European industry from mass Chinese imports and the impact of U.S. import tariffs.
The annual increase in tariff-free import volumes under the steel safeguard measures will be reduced from 1% to 0.1%. Additionally, unused quotas for heavily imported steel products can no longer be transferred to subsequent quarters.
The Commission’s decisions followed a market study requested by thirteen Member States, which showed that European industry was suffering from rising imports and declining demand.
The measures will provide breathing space for European steel producers to increase their production and regain lost market share, the Commission said. The strategy also aims to boost employment and investments in green steel production.
These measures, effective in July, are part of a broader action plan unveiled last week to protect European steel manufacturers. Vice President Stéphane Séjourné announced that the Commission plans to reduce overall imports by a further 15% starting in April.
The Commission first introduced safeguard measures in 2019 in response to the 25% import tariff imposed by U.S. President Donald Trump during his first term. With China’s overcapacity, large volumes of steel risked being diverted to the European market.
This scenario is repeating itself as Trump reintroduced the 25% tariff in March.
