The European Commission is reportedly considering imposing a 50% tariff on steel imports exceeding specific quotas, according to a draft legislative proposal seen by the Handelsblatt newspaper. This potential measure is being framed as a response to increasing protectionism in the United States and a surge in competitively priced steel imports from China.
The draft suggests that a tariff rate of 50% outside of established quota volumes would be “appropriate to minimize the risk of trade deflection” aligning with tariff levels observed in other key markets. Alongside the potential tariffs, the Commission intends to adjust the quota system allowing duty-free imports into the EU.
The overall plan envisages limiting steel imports to 18 million tonnes annually. This represents a 50% reduction compared to the baseline year of 2013. Specific quota allocations will be determined for individual product categories and are subject to potential adjustments during ongoing negotiations.
Currently, the EU levies import tariffs of 25% on steel. These were introduced in 2018 as a countermeasure to tariffs imposed by the administration of former US President Donald Trump. As mandated by World Trade Organization (WTO) rules, these measures are time-bound, with an expiration date scheduled for June 2026. Critically, the effectiveness of the existing tariffs has been diminished in recent years due to several increases in the volume of duty-free quotas.