EU agrees to double tariffs on imported steel to shield industry

The European Union has reached a political agreement to double tariffs on imported steel, in a move aimed at protecting its domestic industry from mounting global competition—particularly from low-cost Chinese production.

The deal, struck between member states and lawmakers in the European Parliament, will raise duties on certain steel imports to 50% from the current 25% once existing quotas are exceeded.

Protecting Strategic Industry
Maroš Šefčovič emphasized the strategic importance of Europe’s steel sector, describing it as essential to the bloc’s industrial strength and strategic autonomy.

“The structure and global position of the European steel sector are fundamental to our industrial power,” he said, warning that global overproduction—driven largely by China—has reached critical levels.

Reduced Import Quotas
Under the agreement, the EU will also cut duty-free steel import quotas by 47%, reducing them to 18.3 million tonnes annually—roughly equivalent to import levels recorded in 2013, before market distortions intensified.

According to EU officials, the global steel market has been heavily impacted by overcapacity, with China producing more than half of the world’s steel, often supported by state subsidies and sold at significantly lower prices.

Scope and Exceptions
The new measures will apply to steel imports from all third countries, with the exception of members of the European Economic Area (EEA), including:

• Iceland
• Liechtenstein
• Norway

Next Steps Before Implementation
The current safeguard regime—imposing 25% tariffs on imports exceeding quotas—is set to expire at the end of June 2026. The newly agreed measures must still receive formal approval from the Council of the European Union and the full European Parliament before entering into force.

Economic Implications
The decision is expected to provide stability for European steel producers struggling with price pressures, while potentially raising costs for industries reliant on imported steel.

Analysts say the move reflects a broader shift toward trade protection and industrial policy within the EU, as global competition intensifies.