EU proposes 50% steel tariffs to counter Trump
The European Commission has proposed a 50% tariff on steel imports above an annual quota, claiming the move will protect the EU’s metals industry from international competition and US duties.
An agreement struck earlier this year by EC President Ursula von der Leyen and US President Donald Trump, viewed in the EU as lopsided, set a baseline 15% US tariff on most exports from the bloc, but left steel and aluminum at 50%.
Von der Leyen's protectionist measure needs approval from the European Parliament but if passed will significantly reduce the existing tariff-free quota and double the tariff on excess volumes from 25% to 50%.
Under the plan, importers would have to prove where steel was melted and poured, and quotas would be reset close to 2013 levels.
“Global overcapacity is damaging our industry,” von der Leyen said in a statement published by the commission.
The EU’s domestic steel sector was operating at only 67% capacity last year, and showed record losses, a slump which was only worsened by Trump’s tariffs.
The US, the bloc’s biggest customer, imported around $8.7 billion worth of iron and steel goods last year, according to S&P Global.
However, the new tariffs would hit the UK hard, as about 78% of its steel exports go to the EU, according to trade data.
UK industry leaders have warned that the new measures could be devastating if implemented, the BBC reported on Tuesday.
