EU Moves to Curb Steel Imports Following US Tariffs

Brussels announced its Steel and Metals Action Plan in a bid to prevent the continent being flooded with steel diverted from the American market.

A steel worker for Germany's industrial conglomerate ThyssenKrupp AG takes a sample of raw iron from a blast furnace at Germany's largest steel factory in Duisburg, on Jan. 28, 2019. Wolfgang Rattay/Reuters

The European Union is planning to further restrict steel imports from April, according to an action plan released on March 19.

The European Commission, the bloc’s executive body, published the European Steel and Metals Action Plan, aiming to “maintain and expand European industrial capacities in the steel and metals sectors.”

Describing the industry as “fundamental” to the continent’s economy and vital to the defense, tech, and automotive sectors, the commission stated that the plan was being put forward at a time of “market-distorting measures, such as non-market support to global overcapacities and unjustified tariffs on EU steel and aluminum.”

“During a period when nobody is respecting WTO [World Trade Organization] rules and everyone refers to national security ... the EU can’t be the only continent that lets its industry fall apart,” European Commission Executive Vice-President Stephane Sejourne told Reuters.

He said Brussels was planning the move to prevent cheap steel from flooding the European market after President Donald Trump imposed new tariffs this month.

With the American market now less attractive in the wake of Washington’s 25 percent tariff, the EU fears producers from Canada, India, and China will seek to divert output intended for the United States to Europe.

This would compound issues for steel producers in Europe, who already face far higher energy prices than firms based elsewhere.

Sejourne, who is responsible for the bloc’s industrial strategy, said a first measure would be to reduce import quotas, known as safeguards, for multiple steel grades from the start of next month, which would cut inflows by approximately 15 percent.

Volumes imported within the quotas reflect established trade flows and are not subject to tariffs, but any steel imports falling outside the quota will be hit by a 25 percent tariff.

Since July 2019, the quota volumes have increased by more than a quarter as the bloc complies with WTO rules.

In 2024, the EU imported about 60 million metric tons of steel, of which 30 million tons were within the tariff-free quota.

The commission will also set out new measures in the third quarter of this year to replace the reinforced safeguards, which, under EU and WTO rules, cannot be extended beyond Jun. 30, 2026, when they will have been in place for eight years.

Sejourne said the new mechanism would be much stricter after appeals from within the steel industry, but the details still need to be finessed.

Public procurement rules are also expected to be revised in 2026 to favor European steel with the commission considering the introduction of a “melted and poured” rule, according to the plan that would stop importers from changing the metal’s origin “by performing minimal transformation.”

The plan states that this “melted and poured” rule “would allow the commission to act against the country where the metal was originally melted, regardless of the place of subsequent transformation and the origin of the good as determined by the traditional non-preferential rules of origin.”

European Commission President Ursula von der Leyen said: “The steel industry has always been a core engine for European prosperity.

“To make sure they remain competitive, we must reduce energy costs and help them introduce innovative, low-carbon technologies to the market. With today’s action plan, we are offering concrete solutions for a thriving European steel industry.”

European steelmakers welcomed the plan, with Luxembourg-based firm ArcelorMittal CEO Aditya Mittal saying: “Details published in the Steel and Metals Action Plan show they understand the urgency of the situation and are ready to tackle some of the critical structural issues, including trade defense, loopholes in the Carbon Border Adjustment Mechanism, and the lack of regulation to drive demand for low-carbon steel.

“This now needs to be supported with rapid action that can put a stop to unfair trade, dumping, and resource shuffling.”

German industrial engineering and steel production conglomerate ThyssenKrupp called the plan “a groundbreaking step towards securing the competitiveness and decarbonization of the European steel industry.”

“Particularly noteworthy is the clear prioritization of trade protection, which is crucial for ensuring the competitiveness of the European steel industry,” the firm stated.

“In the face of global overcapacity and unfair trade practices, effective protection is essential to safeguard jobs and ensure a level playing field.”

Reuters contributed to this report.