MNI BRIEF: EC Proposes Tariff Quotas To Protect Steel Industry

The European Commission has proposed tariff-rate-quotas to protect its steel industry from imports from China and other Asian countries as well as the problem of global overcapacity in the sector.

An EC official told reporters that the measures could cut imports into the EU from their 2024 level of 30.5 million tonnes to 18.3MT, a 47% reduction in the bloc's total steel imports and boost capacity utilisation in its steel sector to 80% from 67%.  The official noted that just allowing the expiry of the current EU safeguards on the sector in June 2026 would have been "extremely damaging" to the output of the EU steel sector, "possibly fatal". 

In addition to protection of the EU steel industry, the new TRQ regime would also provide a starting point for discussions with the US on how to ringfence against global steel overcapacity and an eventual end to the current 50% US tariffs on steel imports, the official added. (see MNI:Trump Tariff Threats Reflect Disengagement-EU Trade Source )