EU Acts to Defend Steel Industry as Šefčovič Unveils Tough New Import Rules
#Steel #EUTariffs #Economy
At a Brussels press conference following the European Commission’s College meeting, Commissioner Maroš Šefčovič, responsible for Trade and Economic Security, announced a major new proposal aimed at countering the global steel overcapacity crisis and protecting Europe’s strategic industrial base.
Šefčovič described the EU steel industry as “a cornerstone of Europe’s economy and strategic autonomy,” vital to key sectors such as defence and automotive. But, he warned, non-market policies and unfair practices abroad are now severely damaging Europe’s competitiveness.
He cited alarming figures: over the past decade, the EU’s steel trade balance has collapsed from an 11 million ton surplus to a 10 million ton deficit. Since 2007, Europe has lost 65 million tons of production capacity, with almost half disappearing since 2018. Current production stands at 126 million tons, but plants are operating at only 67% capacity, well below profitability. Meanwhile, 30,000 jobs have vanished from the sector.
Šefčovič pointed to an unprecedented global glut in steel output: 602 million tons of excess capacity in 2024, expected to surge to 721 million tons by 2027 — more than five times the EU’s total annual demand. At the same time, other regions are raising tariffs and shielding their markets while Europe remains comparatively open and exposed.
In response, the Commission is proposing a new EU steel import regime to replace the current safeguard mechanism expiring in June 2026. The plan will:
– Cut the tariff-free import quota by 47%, from 33 to 18.3 million tons;
– Introduce a 50% tariff on all imports exceeding that quota;
– Apply to all non-EEA countries;
– Require importers to disclose where the steel was “melted and poured” to improve traceability.
Šefčovič emphasized that the measures are fully compatible with WTO rules, and the EU will consult trading partners under GATT Article 28 to ensure transparency. He reiterated the Commission’s commitment to a rules-based international trading system, even as Europe takes stronger defensive steps.
The Commissioner will represent the EU at the Global Forum on Steel Excess Capacity during the G20 Ministerial in South Africa on October 10, where he plans to coordinate with other major steel-producing nations.
Šefčovič stressed that the proposal enjoys strong backing from key EU member states and MEPs across major political groups, calling on co-legislators to adopt the regulation swiftly.
Concluding his remarks, he declared: “This is a necessary, effective yet balanced measure to protect a vital sector of our economy, to support jobs, and to deliver on Europe’s strategic goals.”
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