EU Tightens Steel Import Quotas Amid Global Trade Tensions

The European Union plans to reduce steel import quotas by 15% starting in April to prevent an influx of cheap steel after U.S. tariffs. This move is part of a broader strategy to protect EU steelmakers facing competition and high energy costs.

In response to ongoing global trade tensions, the European Union has announced plans to reduce its steel import quotas by 15% starting in April. This decision is aimed at curbing the influx of cheap steel into the European market, especially after the United States imposed a 25% tariff on its steel imports.

The EU's decision comes as European steel producers grapple with soaring energy costs and intense competition from Asia and other regions. European Commission Executive Vice-President Stephane Sejourne emphasized the need for the EU to protect its industries from becoming a dumping ground for steel diverted from the U.S. market.

The EU Commission is preparing a new European Steel and Metals Action Plan, which includes consulting with aluminium producers facing similar challenges. The plan aims to bolster trade measures and revise public procurement rules by 2026 to prioritize European steel. Further non-trade measures include a pilot programme with the European Investment Bank to support long-term power contracts for steel and aluminium producers.

(With inputs from agencies.)