EU Doubles Steel Tariffs to Protect Domestic Industry

On April 13, 2026, the European Union (EU) reached a preliminary agreement to double tariffs on steel imports to 50% and reduce duty-free quotas by 47%. This decision aims to protect the EU's struggling steel industry from a surge of cheap imports, primarily from China, which produces over half of the world's steel and heavily subsidizes its local manufacturers. The new tariff-free import limit will be set at 18.3 million metric tons per year, a volume reflective of the EU's steel imports in 2013, a year identified as pivotal due to market imbalances caused by excess production.

ReutersEuropean Union agrees to double steel import tariffs to 50% to curb cheap inflows from ChinaEU plans to cut steel imports by 47% and raise tariffs to protect domestic industryFrance 24The Guardian

The agreement was reached during late-night negotiations involving representatives from the European Parliament and the Council of the EU, and it is expected to replace the existing safeguard measures that impose a 25% tariff on imports exceeding set quotas. These current measures are set to expire on June 30, 2026, under World Trade Organization regulations.

Reuters

The EU's steel sector has been operating at only 65% capacity, with the new measures intended to increase utilization to 80%. The European Commission has warned that without these protective measures, the industry could face further declines, having already lost approximately 100,000 jobs since 2008. The European steel industry group Eurofer welcomed the agreement, stating it could help preserve around 230,000 jobs and revitalize the sector, which has seen production fall to historic lows.

European Union agrees to double steel import tariffs to 50% to curb cheap inflows from China

While the measures are designed to bolster the EU's steel industry, they have raised concerns regarding their impact on trade relations, particularly with the United Kingdom. UK Steel, the British industry body, expressed worries that the new quotas could pose an "existential threat" to the British steel industry, which has historically been integrated with the EU market. The UK plans to impose its own 50% tariffs on imports from third countries, further complicating the trade landscape.

The GuardianEU plans to cut steel imports by 47% and raise tariffs to protect domestic industryReutersEuropean Union agrees to double steel import tariffs to 50% to curb cheap inflows from ChinaFrance 24

Karl Tachelet, Eurofer's deputy director, urged the EU to ensure that the UK receives preferential treatment over other non-EU countries, emphasizing the mutual benefits of maintaining strong trade ties.

The Guardian

EU Trade Commissioner Maros Sefcovic stated, "The shape and global standing of Europe's steel sector are fundamental to our strategic autonomy and industrial strength. We therefore cannot afford to turn a blind eye to global overcapacity reaching critical levels." He described the agreement as a necessary step to provide stability for EU producers.

France 24

The provisional agreement requires official endorsement from the European Council and the European Parliament before it can be formally adopted. Additionally, the EU has committed to phasing out steel imports from Russia, with a potential deadline set for September 2028, further reshaping the dynamics of the European steel market.

France 24

There is a discrepancy regarding the exact volume of steel imports that will be affected by the new measures, as different sources report varying figures for the current import levels and the anticipated impact on specific countries. The final allocations for country-specific quotas have yet to be determined, adding another layer of uncertainty to the implementation of these tariffs.

Reuters