Steel Import Quotas Threaten European Automakers

The European Union's proposal to significantly reduce steel import quotas is generating concern among automakers, according to the European Automobile Manufacturers' Association (ACEA). The organization warned that the changes could lead to higher input and administrative costs, impacting roughly 90% of the direct steel purchases made by European carmakers within the EU.

The European Commission laid out its plan on Tuesday to nearly halve tariff-free steel import quotas and double the out-of-quota duty to 50%. This initiative aims to support struggling steelmakers within the union. However, the proposal still requires approval from EU governments and the European Parliament before it can be implemented.

ACEA voiced worries over the inflationary effects of the proposed import restrictions and highlighted the complexity of traceability requirements for automotive supply chains. The association emphasized the need for a balanced approach that considers the needs of both European steel producers and users.