EU's New Tariff-Free Proposal Aims to Boost Steel Industry

The European Commission unveiled a proposal on Tuesday to cut tariff-free steel import quotas by nearly half while imposing a 50% duty on excess shipments. The move is aimed at boosting steelmaking within the European Union as local producers operate at only 67% capacity amid rising imports and U.S. tariffs.

The proposed measures would lower the tariff-free import volume to 18.3 metric tons annually, down 47% from 2024 quotas. This aligns closely with tariff measures in Canada and the United States and will require importers to verify the origin of their steel.

While the plan garners support from the EU steel industry, Britain is urging for urgent dialogue with Brussels. The new system may facilitate negotiations with the US to replace existing tariffs, but industry leaders highlight potential challenges amid ongoing global market dynamics.

(With inputs from agencies.)