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EU to Toughen Steel Import Rules, Targeting Chinese Subsidies

The EU is cracking down on cheap steel imports. New rules aim to level the playing field with China and safeguard Europe's steel industry.

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1 min read
As we can see in the image there is train, railway track, cars, current poles, trees and sky.
As we can see in the image there is train, railway track, cars, current poles, trees and sky.

EU Commission to Significantly Expand Steel Tariffs - EU to Toughen Steel Import Rules, Targeting Chinese Subsidies

The European Union has decided to reject 'dumping prices' facilitated by substantial subsidies, marking a significant shift in its trade policies. The current EU quota for duty-free steel imports, established during the Trump administration's first term (2017-2021), is set to expire on 1 July 2026. The EU Commission is planning to revise these rules to better protect its steel industry.

The EU Commission aims to increase tariffs on steel imports to a level comparable to those implemented by the US and Canada. This move comes as the EU has long accused China of providing its steel industry with an unfair advantage through state aid, leading to global overcapacity in steel. The Commission plans to significantly expand tariffs on steel imports and nearly halve the duty-free import quotas. When these quotas are exceeded, a tariff surcharge much higher than the current 25% will be applied.

The EU's decision is guided by its belief in a rules-based international trade system. However, it will not impose rules on itself that others no longer follow. The Commission is expected to publish its plans next Tuesday, after which the 27 EU member states must approve the new restrictions. These new measures are not intended to be temporary.

The EU's decision to significantly increase tariffs on steel imports is a strategic move to safeguard its steel industry from cheaper Chinese competition. The new measures aim to nearly halve duty-free import quotas and apply a higher tariff surcharge when these quotas are exceeded. The EU Commission's plans will be published next week, with the approval of the 27 EU member states to follow.

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