The European Union is preparing to raise tariffs on steel imports to 50%, according to a draft proposal seen by Bloomberg. The move would bring the bloc’s trade policy closer to that of the United States, which has sought to counter a surge in global overcapacity, particularly from China.
The EU currently relies on a temporary safeguard system that applies a 25% duty on steel imports once quotas are exceeded. That mechanism, introduced to shield European producers from market distortions, is set to expire next year. In its place, the European Commission plans to introduce a more permanent framework, which officials are expected to unveil next week.
According to the draft, the proposed 50% tariff would be applied once a certain import threshold is reached. Brussels argues the measure is necessary “to minimize the risk of trade diversion,” as countries hit with US restrictions redirect their excess steel to Europe.
The new framework would allocate quotas for specific product categories based on historical import averages. It would also give the Commission powers to impose country-specific quotas, designed to prevent any single exporter from dominating the EU market.
The planned changes underscore the growing pressure on policymakers to defend Europe’s steel industry amid heightened global trade tensions. China’s continued production of cheap steel has been a particular flashpoint, leading both Washington and Brussels to tighten their defenses.
If implemented, the tariff hike would mark one of the EU’s most significant trade interventions in recent years, placing it firmly alongside the US in efforts to curb the impact of industrial overcapacity on domestic markets.
