The European Union is strengthening the protection of its steel industry in the face of increasing global competition. Representatives of the European Parliament and the Council of the EU have reached an agreement to expand the scope of safeguard measures on steel imports into the European Union, Agence France-Presse reported, BTA reported.
Under the new rules, only 18.3 million tons of the main categories of steel imports will be able to enter the EU market duty-free - approximately 47 percent less than previous levels. Quantities above this threshold will be subject to a 50 percent duty, a double increase from the previous 25 percent.
Pressure from the global market and China
The measure was taken against the backdrop of accusations by the EU against China of providing state subsidies to its steel industry, which leads to oversupply on the global market. According to the World Steel Association, China produced about 961 million tons last year - more than half of global production. For comparison, Germany produced about 34 million tons.
At the same time, European producers are under pressure from high energy costs, US tariffs and the need for expensive investments to switch to more environmentally friendly production.
Large industrial groups such as „Thyssenkrupp“ and „ArcelorMittal“ (ArcelorMittal) are already experiencing serious difficulties, with part of their production capacity remaining unused.
Tighter quotas with long-term effect
The new regime covers various types of steel - including wire, bars, plates and railway rails used in European industry. Exceptions remain for countries in the European Economic Area such as Norway, Iceland and Liechtenstein.
The previous system proved ineffective, as the quotas were too high and did not really limit imports. It was introduced in the context of trade disputes during Donald Trump's first term and was due to expire on July 1, 2026, according to World Trade Organization rules, the French agency recalls.