BRUSSELS (Reuters) -The European Commission will propose cutting steel import quotas by nearly half and hiking duties on volumes above those quota levels to as high as 50%, similar to tariffs imposed
EU Plans to Slash Steel Import Quotas and Raise Tariffs to 50%
New EU Steel Import Regulations
By Julia Payne
Current Safeguards and Quota Expiration
BRUSSELS (Reuters) -The European Commission will propose cutting steel import quotas by nearly half and hiking duties on volumes above those levels to 50% in line with tariffs imposed by the U.S. and Canada, two sources briefed on details told Reuters on Wednesday.
Impact on EU and U.S. Trade Relations
The measures will be part of a new package for the steel sector due to be unveiled on October 7.
Future of Steel and Aluminium Markets
Stephane Sejourne, the Commission's executive vice president for industrial strategy, briefed steel associations and unions on Wednesday ahead of the announcement.
Henrik Adam, president of European steel association Eurofer and vice president of Tata Steel, told a press conference that Sejourne had reassured attendees their message had been understood, without divulging details.
EU STEEL IMPORT SAFEGUARDS SET TO EXPIRE
Steel imports into the EU are currently limited by safeguards, but these are set to expire in mid-2026 in accordance with World Trade Organization rules.
Steel groups have been pressing for a halving of the current quotas and a tariff of 50% excess volumes from 25% now. They say quotas now are 26% above original levels, while demand has declined.
The rate would put the EU in line with Canada and the United States, though the latter's tariffs apply from the very first ton.
The EU and Western allies are trying to contain excess capacity the OECD says will hit 721 million metric tons in 2027, notably due to subsidised Chinese factories.
The EU is also investigating market trends for potential aluminium safeguards as well as export duties on scrap metal.
The new steel import curb system could help secure a deal with the United States to replace 50% U.S. tariffs with a quota system, as outlined in the end-July U.S.-EU deal.
The EU said it would work closely with Washington in a "metals alliance" to ring-fence their respective production from China.
EU trade chief Maros Sefcovic met U.S. Trade Representative Jamieson Greer in Asia this month to revive the talks.
(Reporting by Julia Payne, additional reporting by Philip Blenkinsop; Writing by Inti Landauro, Editing by Benoit Van Overstraeten, Philip Blenkinsop, Jan Harvey and Ed Osmond)
