EU Slashes Duty-Free Steel Import Quotas to Protect Domestic Industry

The European Commission has significantly reduced duty-free steel import quotas, aiming to revive the EU steel sector. The new regulations cut quotas by 47%, introducing a 50% duty on excess imports to boost capacity utilization. Reactions from industry and trade partners vary as implementation begins.

The European Commission has announced a sweeping reduction in duty-free steel import quotas, aiming to bolster the EU's struggling steel sector. The newly unveiled regulations will cut the annual tariff-free import quotas by 47% to 18.3 million metric tons.

Accompanying these changes is a 50% duty imposed on steel imports that exceed the set limit across 26 product categories. The Commission aims to increase the bloc's steel capacity utilization to 80%, though the European steel association Eurofer estimates a more modest rise to 73%-75% due to sluggish demand.

The policy also earmarks half of the import quotas exclusively for free-trade agreement partners, while others, including FTA partners, will receive adjusted quotas based on historical volumes. This strategy is part of broader efforts to shield the EU steel industry from global overcapacity and competition.