On October 7th, local time, the European Union announced new measures to restrict steel imports. These measures propose cutting the annual tariff-free quota for steel imports by nearly half and imposing a 50% tariff on imports exceeding the quota, doubling the current 25% rate. China, India, Turkey, and the United Kingdom are the primary countries affected. The measures also include strengthening provenance traceability to prevent circumvention.
The EU says the move aims to address global steel overcapacity and protect its strategic steel industry, which directly employs 300,000 people and indirectly supports 2.5 million jobs. The proposal, which has been backed by 11 countries, including France and Italy, and the European Steel Association, requires review by the European Parliament and the European Council. If approved, it would take effect after the current measures expire in June 2026.
The British steel industry has reacted strongly, arguing that the measures pose “significant risks.” The EU is Britain’s largest steel export market, accounting for 75% of its exports, with approximately 1.9 million tons of British steel sold to the EU annually. British steelmakers, already reeling from 50% US tariffs and facing a wave of bankruptcies, worry that the new measures could “cut off access to core markets,” leading to significant losses. The British government, while awaiting details of the plan, has pledged a £2.5 billion investment to protect the domestic industry.
