EU to halve steel import quotas to revive domestic industry

Core Points - The European Commission proposed cutting tariff-free steel import quotas by nearly 50% and implementing a 50% duty on excess shipments to support EU steelmaking viability [1][3] - EU steel producers are currently operating at only 67% capacity, and the new measures aim to increase this to approximately 80% [1] - The proposed tariff-free import volume is set at 18.3 million metric tons per year, a reduction of 47% from 2024 quotas [3] Industry Context - Current safeguards cap imports of 26 steel grades with a 25% tariff on excess imports, but these measures are set to expire in mid-2026 under WTO rules [2] - The new quota volumes are intended to align with import levels from 2013, marking the beginning of overcapacity issues [4] - The measures could reduce imports to a 15% market share, which industry representatives claim is crucial for saving hundreds of thousands of jobs [4] International Relations - The EU will need to negotiate with WTO partners, potentially leading to tariff-free allocations, with only EEA countries exempt from these changes [5] - Major steel exporters to the EU in 2024 include Turkey, India, South Korea, Vietnam, China, Taiwan, and Ukraine [5] - The new system may facilitate a deal with the United States to replace existing tariffs with a quota system, as discussed in a recent U.S.-EU agreement [5][6] Future Considerations - The EU aims to collaborate with like-minded partners to address overcapacity, particularly focusing on production from China [6]