Eyeing China, EU unveils sweeping measures to shield struggling steel industry

The European Commission has unveiled sweeping measures to shield the EU’s struggling steel industry from a flood of overcapacity that it says is emanating from China, slashing tariff-free quotas by nearly half and doubling duties on excess shipments to 50 per cent.

To take effect, the plan must be approved by the European Parliament and the European Council, which is made up of the bloc’s 27 member states, and would replace an existing system of safeguards due to expire in June 2026.

The proposal does not name China, and tariffs and quotas would apply to global imports. Countries would have a chance to negotiate lower rates at the World Trade Organisation, a measure the commission says makes the gambit compliant with the Geneva body’s rules.

Nonetheless, officials involved in the process said China was by far “the biggest problem” and that its steel overcapacity issue had been getting worse rather than better.

“With China, we have been discussing this question of overcapacities for a very long time,” said a senior EU official who was not permitted to be named.