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EU Announces 15% Reduction in Steel Import Quotas

by Giezel Garcia
03/19/2025
in Tariffs & Duties

The European Commission has announced plans to reduce steel import quotas by 15% starting April 1, as part of a broader strategy to support the European steel and metals industries. The measure aims to address concerns over global steel overcapacity and competition from non-EU producers.

European Commission Vice-President Stéphane Séjourné emphasized the need to protect domestic steel production from what the Commission views as unfair competition. “In recent years, global overcapacity—particularly in Asia—has significantly impacted order books for European steel plants,” Séjourné stated while presenting the Commission’s action plan.

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The move follows the imposition of 25% tariffs by the United States on steel and aluminum imports, which the EU fears could lead to a redirection of excess global supply into European markets. In response, the EU has maintained safeguard measures on steel imports since 2018, renewing them multiple times to prevent market distortions. The latest adjustment will tighten quotas further, reducing imports by 15%.

The Commission also plans to introduce a new rule known as the “melted and poured” requirement for metal imports. This measure aims to prevent companies from circumventing trade defense mechanisms by completing final production stages in third countries before exporting to the EU. Under this rule, trade restrictions would apply based on where the raw metal was initially processed, rather than where the final product was finished.

Additionally, the Commission announced plans to propose a replacement for the existing steel safeguard mechanism, which is set to expire in 2026. The proposal is expected to be introduced in the third quarter of 2025.

The EU is also investigating potential safeguard measures for aluminum imports as part of its broader trade policy strategy. The Commission has stated that these measures are intended to maintain a competitive and stable steel and metals industry within Europe while responding to shifting global trade dynamics.

Get top supply chain report news on The Supply Chain Report. For international trade insights and tools, visit ADAMftd.com.

#EUSteelImport #SteelQuotas #TradePolicy #EuropeanUnion #SteelIndustry #ImportRegulations #GlobalTrade

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