The European Commission plans to sharply reduce steel import quotas and raise tariffs on shipments above those limits, Reuters reported on Wednesday, citing a source familiar with the matter.
Duties on volumes exceeding the quotas could reach as high as 50%, the report said, bringing the EU in line with measures already in place in the United States and Canada.
The proposal is part of a new safeguard package for the steel industry, set to be unveiled on October 7.
Last month, Commission President Ursula von der Leyen said the EU would present a new framework to protect domestic steelmakers from foreign competition.
"Global overcapacity is squeezing margins and leaving little incentive to pay a clean premium. This makes it harder for Europe’s steel industry to invest in decarbonisation," she told the European Parliament in September.
"That is why the Commission will propose a new, long-term trade instrument to succeed the expiring steel safeguards," von der Leyen added in her annual state of the union address.
The move comes in the wake of President Donald Trump’s June decision to slap 50% tariffs on U.S. steel imports. That decision has set off a swift response globally, with countries such as Mexico, Brazil, and Canada pushing back.
While all three have opened talks with Washington in hopes of easing the duties, they are also working to shore up domestic demand and fend off cheap Chinese exports that threaten their home markets.
Mexico last month unveiled new tariffs of up to 50% on Chinese products, including steel. Canada has rolled out its own protective steps, while in Brazil industry groups are pressing the government to strengthen barriers against foreign supply.
The three countries together made up 38% of U.S. steel imports in July and roughly half of last year’s shipments.
Source :
https://www.investing.com/news/stock-market-news/eu-to-slash-steel-import-quotas-raise-tariffs-in-new-safeguard-plan--report-4265568
