European Union Plans To Reduce Steel Imports

According to Reuters, the European Union (EU) is planning a move next month to tighten steel import quotas in order to reduce inflows by an additional 15 percent. Any steel imports outside the quota would be subject to a 25 percent tariff. The EU also offered several others measures aimed at boosting the continent’s industrial metals industry. “During a period when nobody is respecting WTO (World Trade Organization) rules and everyone refers to national security… the EU can’t be the only continent that lets its industry fall apart,” European Commission Executive Vice-President Stephane Séjourné told Reuters.

In 2024, the EU imported about 60 million metric tons of steel out, of which 30 million tons were within the tariff-free quota.

In the coming months, the EU also is expected to:

• Issue public procurement rules that favor European steel;
• Introduce a “melted and poured” rule that would stop importers from changing the metal’s origin “by performing minimal transformation”; and
• Launch a pilot program with the European Investment Bank to guarantee long-term power contracts will prioritize steel producers.

The EU also is considering similar measures for aluminum and aluminum products. “We want to keep our steel in Europe and be able to recycle in Europe,” Séjourné said. “It’s a strategic issue. There is no defense industry without steel, there is no automobile without steel and we want to keep our industries.” Read Séjourné’s full remarks at this link.

In related news: the EU did opt to delay tariffs on U.S. exports into the trading bloc. Those penalties were to go into place on April 1 and also were in response to the imposition of tariffs on European aluminum and steel. Read more at The Hill.