EU cuts tariff-free steel imports to 18.3 million tons from Wednesday

The European Commission will cap tariff-free steel imports at 18.3 million metric tons and raise the above-quota tariff to 50% from 25%, aiming to protect EU steelmakers while risking higher costs for steel users.

Summary

The European Union will tighten steel import safeguards from Wednesday by capping tariff-free imports at 18.3 million metric tons and doubling the tariff on volumes above that threshold to 50% from 25%. The European Commission said the move is intended to protect the bloc’s steel industry from overcapacity, with half of the quota reserved for countries that have free-trade agreements with the EU. The policy may support domestic steel producers, but it could also raise costs and supply pressures for steel-dependent industries and risk aggravating trade tensions.

Terms & Concepts
  • tariff-free quota: Import volume allowed to enter without tariffs
  • free-trade agreements: Deals between economies that reduce trade barriers
  • overcapacity: Production capacity that exceeds market demand