EU tightens grip on steel imports to safeguard local industry
The European Union plans to reduce import quotas on steel, aiming to decrease its inflow by an additional 15% from April, a senior EU official informed Reuters on Wednesday. This move seeks to prevent the European market from being inundated with cheap steel.
European steel producers, already grappling with high energy costs and competition from Asia and other regions, caution that the EU could become a destination for cheap steel, redirected from the American market following the new U.S. administration's decision 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. Sejourne predicts that producers from Canada, India, and China may attempt to boost exports to Europe.
Therefore, from April, the European Union plans to reduce import quotas on steel 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 introduced a package of trade measures designed to support the struggling steel industry in Europe.
Under the quotas, imported steel is not subject to tariffs, while steel exceeding the quota will incur a 25% tariff by the EU.
