EU cuts steel import quotas by 15% to protect local industry
The European Union plans to reduce import quotas on steel to cut its inflow by an additional 15% starting in April, a senior EU official told Reuters on Wednesday. This move aims to prevent the European market from being flooded with cheap steel.
European steel producers, already struggling with high energy costs and competition from Asia and other regions, warn that the EU may become a destination for cheap steel redirected from the American market after the new U.S. administration decided to impose tariffs on the product.
Stephane Sejourne, Vice President of the European Commission, stated in an interview with Reuters that while countries worldwide are disregarding WTO rules and prioritizing national security, the EU cannot be the only continent allowing its industry to weaken.
Due to the 25% tariff on steel imposed by President Donald Trump's administration, the American market has become less attractive, which according to Sejourne, will cause producers from Canada, India, and China to try to increase exports to Europe.
Therefore, from April, the European Union plans to reduce import quotas on steel to cut its inflow by an additional 15%.
EC to the rescue of the struggling steel industry
On Wednesday, the CEO of the German company Thyssenkrupp, the second-largest steel producer in Europe, announced that in 2024, the United States imported about 23 million metric tonnes of steel, and these volumes could now be redirected to other markets like Europe.
The European Commission on Wednesday presented a package of trade measures aimed at supporting the struggling steel industry in Europe.
Within the quotas, imported steel is not subject to tariffs, while steel outside the quota will be subjected to a 25% tariff by the EU.
