The European Commission has announced a new action plan aimed at the steel and metals industries, targeting a significant reduction in steel imports by 15%. This initiative comes in light of intense global competition and marks a response to the challenges posed by high US tariffs and overwhelming competition from Asia. The new import quota, effective from April 1, aims to help strengthen the European steel sector amid concerns over increasing global overcapacities. Vice-President of the Commission, Stéphane Séjourné, emphasized the need for protective measures for European steelworks.
He remarked on the detrimental impact of global overcapacities on local producers, asserting that combating unfair foreign competition is a top priority for the Commission. This initiative follows the 25% tariff imposed by the US on all steel and aluminum imports, which has raised fears in the EU about an influx of foreign steel into their market. Since 2018, in response to a trade dispute with the Trump administration, the EU has implemented various safeguard measures to limit steel imports, which have been renewed multiple times. The upcoming plan will involve tightening these quotas further to ensure a 15% decrease in imports.
Additionally, the Commission plans to unveil a replacement for the current safeguard clause, set to expire in 2026, in the third quarter of 2025. Moreover, the action plan includes an investigation into the EU aluminum market to possibly establish new safeguard measures. To tackle potential circumvention of trade defenses, the EU aims to introduce a “melted and poured” rule for metal imports. This rule would close loopholes that allow foreign importers to evade trade measures by conducting production stages in third countries, thus ensuring fair competition for European producers.