Review of Steel Import Quotas and Potential Tariff Increases

The European Commission is considering tightening its steel safeguard measures in response to ongoing global overcapacity and weak market conditions. This potential move, which is part of the Commission’s annual review process, may involve limiting steel imports more strictly. The review could be expedited, with a decision expected as early as next week.

Currently, the European steel market is under pressure due to weak demand and an oversupply of steel from global producers. Industry stakeholders are concerned that the planned 1% liberalization of steel import quotas would further destabilize the market. This change would allow importers to secure a larger share of the shrinking European market, which is facing significant competition from cheaper foreign steel.

Tightening of Import Volumes and Investigations into Dumping Practices

In addition to the proposed reduction in steel import quotas, the European Commission is expected to further tighten the existing 15% cap on imports from “other countries.” The Commission is also likely to initiate additional investigations into possible dumping practices by steel exporters from countries such as Egypt, Japan, India, Vietnam, South Korea, and Indonesia. These investigations may lead to higher tariffs or other protective measures aimed at safeguarding the interests of European steel producers.

Specifically, there are discussions regarding the inclusion of hot-rolled coil (HRC) from countries such as Egypt, Japan, India, and Vietnam. The European Union may also examine other products, including hot-dip galvanized steel from Vietnam and plate steel from South Korea and Indonesia. Cold-rolled coil from Taiwan could also fall under scrutiny, as part of the broader investigation into Asian steel imports.

European steel mills have been pushing for stronger measures, arguing that current safeguards are insufficient to protect them from a flood of cheaper imports. The upcoming review of the EU’s steel trade strategy could have significant implications for both domestic steel producers and foreign exporters, potentially reshaping the EU’s approach to steel imports in the long term.