EU tightens steel import quotas amid flood of cheap supply
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 imposed 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.
The 25% steel tariff imposed by President Donald Trump's administration has made the American market less attractive. According to Sejourne, this will encourage producers from Canada, India, and China to increase their European exports.
Therefore, starting in April, the European Union plans to reduce steel import quotas by an additional 15% to reduce its inflow.
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 25 million tons of steel, and these volumes could now be redirected to other markets like Europe.
The European Commission presented a package of trade measures on Wednesday to support Europe's struggling steel industry.
Imported steel is not subject to tariffs within the quotas, while steel outside the quota will be subject to a 25% tariff by the EU.
