EU Parliament adopts higher tariffs on foreign steel to battle China’s cheap exports

STRASBOURG, France - The European Parliament gave its final approval on May 19 to double tariffs on foreign steel in a bid to protect the EU’s beleaguered industry from cheap Chinese exports.

Lawmakers voted 606 to 16 in favour of hiking levies on steel imports to 50 per cent and slashing the volume allowed in before tariffs apply by 47 per cent.

Under the new measures, which follow a proposal put forward by the European Commission in 2025, import tariff-free quotas will be reduced to 18.3 million tonnes a year – the total volume of steel the EU imported in 2013.

That year was chosen as the EU finds that the market became unbalanced from that point on because of excess production – mainly due to China, which massively subsidises local steelmakers and now produces more than half of the world’s steel.

“Europe needs a strong and competitive steel industry built on trade, innovation and fair competition. Combatting the negative trade effects of global overcapacity is essential,” said EU lawmaker Karin Karlsbro, who pushed the deal through Parliament.

The industry welcomed the green light.

Mr Axel Eggert, director general of European steel industry group Eurofer, said: “At a time of growing geopolitical uncertainty and market distortions, this sends an important signal that the EU is prepared to act to defend its industrial base, security and autonomy.”

The measures will become law after EU states give their final green light and will kick in from July 1.

The EU strategy mirrors the one embraced by US President Donald Trump, who slapped tariffs of 50 per cent to keep out cheap metals from China.

Brussels has been urging the US to lower steel levies on the bloc.

But its approach has caused some consternation in non-EU countries, including the United Kingdom and Switzerland.

British trade minister Chris Bryant called for an EU-UK steel “alliance” after Britain imposed similarly higher levies.

“We need to be able to continue exporting steel into the European Union, and the EU needs to be able to continue exporting into the UK,” Mr Bryant told AFP in Strasbourg where he said he was talking to EU lawmakers about cooperation.

British Prime Minister Keir Starmer announced last week that he would introduce legislation to nationalise Chinese-owned British Steel after the government took control of the company in 2025.

The EU executive said on May 18 that it will prepare specific tariff-free steel quotas for its trading partners including Switzerland, which it hopes to have in place also by July 1. AFP