EU Strikes Deal to Protect Steel Industry with New Tariff Measures

The European Union has reached a preliminary agreement to nearly halve steel imports and impose a 50% tariff on excess shipments to bolster the bloc's steel industry. Designed to push capacity utilization to 80%, this measure will also phase out Russian steel imports by 2028.

The European Union finalized a preliminary agreement on Monday to sharply reduce steel imports and introduce a 50% tariff on surplus shipments. This strategic move aims to shield EU steelmakers from global overproduction that has hampered the industry's growth.

Currently, EU steel manufacturers operate at only 65% capacity due to increasing import levels and tariffs imposed by then-U.S. President Donald Trump. The newly proposed measures would elevate capacity utilization to 80% by limiting tariff-free imports to 18.3 million metric tons, which marks a significant 47% reduction compared to 2024, coupled with doubled out-of-quota duties.

Over the past years, Turkey, South Korea, China, and others have been key contributors to EU steel imports. However, EU safeguards must legally lapse by June 30, according to World Trade Organization statutes. To counter potential industry declines and job losses, the EU plans to phase out Russian steel imports possibly by September 2028, impacting 3.7 million tons of steel slabs imported last year.