The EU Takes Action to Limit Steel Imports After US Tariffs
Brussels has introduced its Steel and Metals Action Plan to prevent the influx of steel redirected from the American market into Europe.
The European Commission, the executive body of the EU, has published the European Steel and Metals Action Plan with the goal of “maintaining and expanding European industrial capacities in the steel and metals sectors.”
Highlighting the industry’s significance to the continent’s economy and essential role in defense, technology, and automotive sectors, the commission noted that the plan comes amidst “market-distorting measures, such as non-market support to global overcapacities and unjustified tariffs on EU steel and aluminum.”
European Commission Executive Vice-President Stephane Sejourne told Reuters, “During a period when nobody is respecting WTO [World Trade Organization] rules and everyone refers to national security … the EU can’t be the only continent that lets its industry fall apart.” He explained that this move by Brussels aims to prevent the flooding of cheap steel into the European market following President Donald Trump’s recent tariff implementations.
Concerns have arisen for steel producers in Europe due to higher energy prices compared to firms in other regions. Sejourne, responsible for the EU’s industrial strategy, stated that the initial step would involve reducing import quotas for various steel grades from the beginning of next month, resulting in a 15 percent decrease in inflows.
Quotas for steel imported within the established trade flows are not subject to tariffs, but any steel imports exceeding the quota will face a 25 percent tariff. These quota volumes have increased by over a quarter since July 2019 as the EU follows WTO regulations.
Sejourne mentioned that the new mechanism would be stricter following appeals from the steel industry, with further details needing refinement.
Expected revisions to public procurement rules in 2026 would favor European steel, potentially introducing a “melted and poured” rule preventing importers from altering the metal’s origin through minimal transformation.
“To ensure their competitive edge, we need to lower energy costs and assist them in introducing innovative, low-carbon technologies to the market. With today’s action plan, we offer practical solutions for a flourishing European steel industry.”
“This now needs to be supported with rapid action that can put a stop to unfair trade, dumping, and resource shuffling.”
“Effective protection is essential to safeguard jobs and ensure a level playing field.”
Reuters contributed to this report.
