Synopsis
European Union to tighten steel import quotas by 15% from April to prevent cheap steel inflows after U.S. tariffs. The Commission plans new measures to support the metals industry, with public procurement rules favouring European steel. Plans include replacing safeguards by 2026 and revising public procurement to prioritize European steel, crucial for strategic industries. AP The European Union will tighten steel import quotas to reduce inflows by a further 15% from April, a senior EU official said on Wednesday, in a move aimed at preventing cheap steel flooding the European market after Washington imposed new tariffs.
European steel producers already battling high energy prices and competition from Asia and elsewhere warn that the EU risks becoming a dumping ground for cheap steel diverted from the U.S. market, which could kill off Europe’s plants.
“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.
Given the U.S. market was now making less commercial sense with a 25% tariff imposed by President Donald Trump’s administration in place, Sejourne forecast that producers from Canada, India and China would look to sell increasing volumes in Europe.
The Commission will on Wednesday propose a raft of trade-related measures to boost its ailing metals industry, part of a new European Steel and Metals Action Plan. A draft of the plan seen by Reuters earlier this week showed the EU was studying import curbs.
Sejourne, who is responsible for defining the bloc’s industrial strategy, said a first measure would be to reduce import quotas, known as safeguards, for multiple steel grades from April 1, which would cut inflows by approximately 15%.
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