BRUSSELS, April 13 (Reuters) - The European Union reached a preliminary agreement on Monday on measures to nearly halve imports of steel and impose sharply higher tariffs on excess shipments to
EU agrees on halving of steel imports via doubling of tariffs
EU's New Steel Import Measures and Their Implications
By Alexander Chituc and Philip Blenkinsop
Background and Rationale for New Tariffs
BRUSSELS, April 13 (Reuters) - The European Union reached a preliminary deal on Monday to nearly halve imports of steel and impose tariffs of 50% on excess shipments to protect the bloc's steel industry from overproduction elsewhere.
Current State of EU Steel Producers
EU steel producers are operating at only 65% capacity due to rising imports and 50% tariffs imposed by U.S. President Donald Trump. The new measures are designed to push capacity utilisation up to 80%.
Details of the Agreement
Representatives for the European Parliament and the Council, the body representing EU governments, agreed late on Monday to limit tariff-free imports to 18.3 million metric tons per year, a 47% cut compared to 2024, with a doubling of the out-of-quota duties.
Main Sources of Steel Imports
Last year, the main sources of steel imports into the EU were Turkey, South Korea, Indonesia, China, India, Ukraine, and Taiwan.
Safeguards and WTO Regulations
EU steel is currently protected by safeguards, put in place during Trump's first term, with import quotas and 25% tariffs above those limits. However, under World Trade Organization rules, they must expire after eight years - on June 30.
Impact on EU Steel Sector
The European Commission, which proposed new measures nL5N3VO16A in October, said the EU steel sector has lost some 100,000 jobs since 2008 and output would decline even further without extended restrictions.
Implementation and Future Outlook
The new measures will take more into account where imported steel was originally melted and poured to avoid circumvention and be regularly reviewed to ensure they are effective.
Phasing Out Russian Steel Imports
The parties also committed to phase-out imports of steel from Russia swiftly, possibly by September 2028. Some 3.7 million tons of steel slabs came from Russia to the EU last year.
Next Steps for Approval
The parliament and Council will need to vote on Monday's agreement for the measures to enter force.
(Reporting by Philip Blenkinsop and Alexander Chituc; Editing by Nick Zieminski)
