(March 25): The European Union took steps to limit the amount of steel that can be imported into the bloc tariff-free as part of a broader effort to protect the sector from rising imports.

The European Commission, the EU’s executive arm, said Tuesday it will reduce the liberalisation rate from 1% to 0.1%. In addition, the commission will stop allowing countries to rollover unused quotas to subsequent quarters for categories with high import pressure.

The action is part of broader action plan for steel presented last week by the European Commission, the EU’s executive arm. EU industry commissioner Stephane Sejourne said last week that the bloc plans to reduce steel imports by a further 15% starting in April.

The EU steel industry has been demanding tighter safeguard measures given the increasing pressure from the global overcapacity and rising exports from China. These measures were first introduced in 2019 to protect the industry after US President Donald Trump introduced a 25% tariff on steel that risked diverting big volumes of exporters to the European market, against the backdrop of the steel overproduction.

After a trade truce under President Joe Biden, the Trump administration last month reimposed 25% tariffs on all imports of steel, along with aluminium.

The commission’s latest decision follows a review investigation requested by 13 member states, which found that the industry’s situation was worsening due to increased import pressures and decreasing demand.

The new measures “will create breathing space for EU steel producers to increase their production and thus regain lost market share”, the commission said in a statement. It added that the EU also aims to increase employment and investment in green steel production. The safeguard measure has been extended through the end of June 2026.

Europe’s steel association Eurofer has been demanding tighter measures to reflect new market dynamics and requested a comprehensive post-safeguard trade regime after 2026 to address the destructive spillover effects of global steel excess capacity on the EU market.

“There is too little to stop the ongoing deindustrialisation, and for stainless steel there is even no relief,” Axel Eggert, the group’s director, said in a statement. “Imports will continue to destroy the EU steel market.”

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