EU imposes a 50% tariff to protect the steel industry: A resolute move to safeguard the “heart” of Europe’s industry.
Wednesday, Oct/08/2025 - 06:53
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(L&D) - The European Commission (EC) has just announced a plan to double the import tariff on steel to 50% and cut nearly half of the existing import quota. This move is considered a strong measure to protect the steel industry — the backbone of Europe’s manufacturing sector — from the influx of cheap steel from China.
Speaking to the press in Strasbourg (France), European Commission Vice President for Industrial Strategy and Prosperity, Stephane Sejourne, stated: “The European steel industry is on the verge of collapse. We must protect it in order to invest, reduce emissions, and restore competitiveness.”
This proposal, if approved by the EU member states and the European Parliament, will replace the current safeguard mechanism (imposing a 25% tariff) that is expected to expire in mid-2026.
The European steel industry has been facing numerous challenges in recent times.
According to the plan, this proposal will replace the current safeguard mechanism – which imposes a 25% tariff on steel volumes exceeding the quota – that is set to expire in mid-2026. If approved by the member states and the European Parliament, the 50% tariff will take effect as early as 2025.
The EU’s move is seen as mirroring the protectionist policy of the United States under former President Donald Trump, who imposed a similar tariff to block the influx of cheap steel from China – the country that accounts for more than half of global steel production.
According to the EU Commissioner for Trade and Economic Security – Maros Sefcovic, Europe’s economic sovereignty is being challenged as it remains the last major market still open to imported steel. He emphasized that the European Commission (EC) will coordinate with the United States to build a “metal alliance” aimed at curbing China’s excessive production capacity.
This action is considered consistent with U.S. policy under Donald Trump, when Washington imposed a 50% tariff to block the flow of low-priced steel from Asia.
Currently, China produces more than 1 billion tons of steel annually, accounting for over half of total global output, while Germany, Spain, and France together produce less than 60 million tons. This has driven global steel prices sharply down, causing profits of European manufacturers to plummet.
The European steel industry currently employs around 300,000 workers directly and affects over 2.3 million indirect jobs. However, over the past 15 years, the region has lost nearly 100,000 jobs. Companies such as Thyssenkrupp and ArcelorMittal have been forced to downsize or even suspend multi-billion-euro decarbonization projects due to rising energy costs and falling steel prices.
According to the European Steel Association (Eurofer), without a sufficiently strong protection mechanism, the EU’s green transition will be at risk. Cheap imported steel not only distorts competition but also fails to meet the strict environmental standards set by Brussels.
Steel is an essential material for renewable energy industries such as solar panels, wind turbines, and electric vehicles. Therefore, maintaining intra-EU steel production capacity is considered a prerequisite for the bloc to achieve its carbon neutrality target by 2050.
Eurofer believes that an effective system of tariffs and quotas will help the steel industry invest in clean technologies while strengthening Europe’s position in the global supply chain.
The steel industry carries not only economic value but also symbolic significance for European integration. In the 1950s, the Coal and Steel Community laid the foundation for the European Community, the precursor to today’s European Union (EU).
Now, as the EC implements the new tariff, the decision represents not just a trade confrontation with cheap steel, but also a test of Europe’s resilience in an era of globalization and fierce industrial competition.
Recently, Germany’s Thyssenkrupp Group announced 11,000 job cuts and a reduction in production capacity. Meanwhile, ArcelorMittal – the world’s second-largest steel producer – suspended its €1.8 billion decarbonization project in France and laid off 600 workers in the country’s north.
European enterprises argue that without new tariff barriers, they cannot compete with cheap, high-emission Chinese steel.
The steel sector was once the cradle of European integration when the Coal and Steel Community was established in the 1950s, laying the foundation for what would become the European Union (EU).
Therefore, the introduction of the new tariff this time carries not only economic significance but also serves as a test of the bloc’s unity and resilience amid global industrial competition.
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