EU Hikes Steel Tariffs to 50% to Counter Chinese Imports

The European Union is preparing to unveil a plan that would raise tariffs on steel imports in order to shield its struggling industry from cheap Chinese competition. The proposal, to be presented by EU industry chief Stéphane Séjourné and trade commissioner Maroš Šefčovič, calls for doubling levies on steel imports to 50 % and cutting quotas by nearly half. This approach mirrors the tariffs imposed by former U.S. President Donald Trump to keep low‑cost Chinese metals out of the American market.

The EU’s steel sector, which employs about 300,000 people directly and supports roughly 2.3 million indirect jobs, has already lost almost 100,000 jobs over the past 15 years. The current crisis threatens further losses, prompting industry leaders to urge swift action. The proposed measures aim to enable the sector to invest, decarbonise and regain competitiveness.

EU trade officials are seeking cooperation with Washington to address Chinese overcapacity. Talks with U.S. counterparts are under way to agree on steel import quotas, and a “metals alliance” is being pursued to protect both economies from excess supply. Such collaboration is deemed essential, as the EU and U.S. steel and aluminium industries face similar challenges.

If approved, the plan would permanently replace the existing safeguard scheme, which imposes a 25 % duty on imports exceeding set quotas and is scheduled to expire next year. The new tariffs and reduced quotas must be ratified by EU member states and the European Parliament.

The initiative is presented as vital for the EU’s economic sovereignty and its climate objectives. Steel is a key component of renewable‑energy equipment—such as solar panels, wind turbines, and electric vehicles—and the bloc’s decarbonisation strategy depends on a robust domestic steel industry. The proposal is therefore viewed as a necessary step to protect the sector and ensure its long‑term viability, while the international community watches closely amid broader trade tensions and efforts to curb Chinese overcapacity.