EU plans to cut steel import quotas, hike tariffs to 50%

Core Viewpoint - The European Commission plans to propose significant cuts to steel import quotas and increase duties on excess volumes to align with U.S. and Canadian tariffs, aiming to address overcapacity issues caused by subsidized Chinese production [1][2]. Group 1: Proposed Measures - The European Commission will propose cutting steel import quotas by nearly half and increasing duties on volumes exceeding these quotas to 50% [1]. - These measures are part of a new package for the steel sector, set to be officially announced on October 7 [2]. - Current steel safeguards in the EU are set to expire on June 30 next year, prompting the need for new regulations [2]. Group 2: Context and Background - The EU tightened existing steel import quotas by 15% starting April 1, indicating a proactive approach to managing steel imports [3]. - The focus on steel follows U.S. President Donald Trump's decision to impose a 50% tariff on foreign steel and aluminum imports earlier this year [3]. - The EU aims to collaborate with the U.S. in a "metals alliance" to protect their respective steel production from Chinese overcapacity [4]. Group 3: Ongoing Negotiations - EU trade commissioner Maros Sefcovic has engaged with U.S. Trade Representative Jamieson Greer to revive discussions on trade [5]. - The new safeguards are expected to serve as a foundation for detailed negotiations with Washington regarding steel trade [5].