EU to double steel tariffs to 50%, slash quotas to shield industry

The European Commission proposed doubling duties on foreign steel to 50% and cutting import quotas by 47% to 18.3 million tons, saying the move is needed to stem cheap inflows and protect jobs.

General view of the ArcelorMittal steel plant in Liege, Belgium, 28 September 2012. Reports state that the ArcelorMittal would close two blast furnaces and a foundry at the site in Liege, with unions estimating that over 600 jobs would be lost.

Photo: EPA/OLIVIER HOSLET

Industry chief Stéphane Séjourné said 18,000 steel jobs were lost last year, while Trade Commissioner Maroš Šefčovič called the plan “necessary, effective yet balanced.”

The proposal mirrors U.S. steps targeting Chinese overcapacity and would replace the EU’s current safeguard, which levies 25% beyond set quotas and expires next year.

Importers must show where steel was “melted and poured” to prevent circumvention. The European Steel Association hailed a “real lifeline” and urged fast-track approval.

Britain voiced alarm, noting 80% of its steel exports go to the EU; Sefcovic said Brussels will engage with London and is also discussing a broader U.S.-EU “metals alliance.”

Brussels says global overcapacity—driven mainly by subsidized Chinese output—is “critical,” with capacity seen reaching five times EU demand by 2027. The sector employs about 300,000 people and underpins the bloc’s clean-energy supply chains.

(jh)

Source: Euronews, Bankier.pl