The European Union plans to tighten steel import quotas by 15% starting April, aiming to shield its struggling steel industry from a flood of cheap imports diverted by U.S. tariffs. The move, part of the EU’s Steel and Metals Action Plan, responds to President Donald Trump’s 25% steel tariffs, which have redirected millions of tons of steel from Canada, India, and China toward Europe.
Key Measures:
Import Quotas: Reduce tariff-free steel imports by 15%, with volumes exceeding quotas subject to a 25% duty.
New Safeguards: Replace expiring WTO-compliant safeguards by June 2026 with stricter rules, including a “melted and poured” origin requirement to prevent minimal processing fraud.
Public Procurement: Revise rules by 2026 to favor European steel in government contracts.
Energy Support: Launch a pilot program with the European Investment Bank to secure long-term power contracts for steel and aluminum producers.
Industry Impact:
Thyssenkrupp and ArcelorMittal (Europe’s top producers) warn that diverted U.S. imports threaten domestic plants already grappling with high energy costs and Asian competition.
In 2024, the EU imported 60 million metric tons of steel, half within tariff-free quotas.
Strategic Rationale:
Stephane Sejourne (EU Commission VP): “The EU can’t let its industry fall apart while others ignore WTO rules. Steel is vital for defense, autos, and recycling.”
The EU aims to avoid over-reliance on imports, drawing parallels to its past dependence on Russian gas.