EU agrees on halving of steel imports via doubling of tariffs

The European Union reached a preliminary deal on Monday to nearly halve imports of steel and impose tariffs of 50 percent on excess shipments to protect the bloc's steel industry from overproduction elsewhere.

EU steel producers are operating at only 65 percent capacity due to rising imports and 50 percent tariffs imposed by U.S. President Donald Trump. The new measures are designed to push capacity utilisation up to 80 percent.

Representatives for the European Parliament and the Council, the body representing EU governments, agreed late on Monday to limit tariff-free imports to 18.3 million metric tons per year, a 47 percent cut compared to 2024, with a doubling of the out-of-quota duties.

Last year, the main sources of steel imports into the EU were Turkey, South Korea, Indonesia, China, India, Ukraine, and Taiwan.

EU steel is currently protected by safeguards, put in place during Trump's first term, with import quotas and 25 percent tariffs above those limits. However, under World Trade Organization rules, they must expire after eight years, on June 30.

The European Commission, which proposed new measures in October, said the EU steel sector has lost some 100,000 jobs since 2008 and output would decline even further without extended restrictions.

The new measures will take more into account where imported steel was originally melted and poured to avoid circumvention, and will be regularly reviewed to ensure they are effective.

The parties also committed to phase out imports of steel from Russia swiftly, possibly by September 2028. Some 3.7 million tons of steel slabs came from Russia to the EU last year.

The parliament and Council will need to vote on Monday's agreement for the measures to enter force.

Reuters