- New measures will focus on semi-finished steel exports from China
- EU may implement US Article 232-like measure to protect domestic industry
The European Commission is set to announce new trade measures on steel imports next week, replacing the current safeguard mechanism. The proposed changes include a significant reduction in the tariff quota quantity of the duty-free quota allowed by the current safeguard and a potential increase in the tax rate from 25% to 50%.
Key focus areas
The new measures will focus on semi-finished steel products from China, such as slabs and billets, and directional electrical steel plates from Japan. These products may be included in the target, aiming to protect the EU steel industry from global overcapacity and subsidized imports.
WTO compliance and US influence
European Commission President von der Leyen emphasised that the new measures will be long-term and align with World Trade Organization (WTO) rules. The EU is likely taking cues from the US “Trade Expansion Act Article 232” and may implement similar measures to safeguard its steel industry.
Industry support and implications
The European Steel Association and Industrial jointly held an emergency press conference, attended by European Commission Senior Vice-President Stefan Sejurnet, indicating industry support for the new measures. With the Carbon Border Adjustment Measure (CBAM) scheduled to be fully operational next year, the EU steel market conditions are expected to improve in 2026 if new measures are implemented.
Negotiations with the US
The EU aims to obtain a Tariff Rate Quota under Article 232, imposing an additional tariff of 50% on steel exported to the United States. The establishment of this trade measure is likely aimed at using it as negotiating material with the Trump administration, addressing concerns about steel exports from China and potential diversion to the US.
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