EU's Bold Move: Cutting Steel Import Quotas Amid Global Challenges

The European Commission plans to cut steel import quotas by almost half and increase duties on excess volumes to 50%, aligning with U.S. and Canadian tariffs. This move aims to address declining demand and excess capacity issues while maintaining EU's industrial competitiveness against subsidized Chinese factories.

The European Commission is set to propose a dramatic cut in steel import quotas by nearly half, with duties on exceeding volumes potentially hiking to 50%, sources disclosed to Reuters.

This initiative aligns EU tariffs with those of the U.S. and Canada, a strategic move in response to dwindling demand and an influx of subsidized steel, especially from Chinese factories.

As approaches to bolster the EU's steel industry are considered, the Commission also eyes potential aluminium safeguards and export duties on scrap metal, striving for a comprehensive 'metals alliance' with the United States.

(With inputs from agencies.)