The European Union is planning new trade rules to help its struggling steel industry. One major change is reducing the amount of steel that can enter Europe without extra taxes. Starting in April, the EU will lower these import limits by 15% to prevent too much cheap steel from coming in. This decision comes after the U.S. placed high tariffs on steel, which may push producers from countries like China, India, and Canada to sell more in Europe instead.
European steelmakers are already facing big challenges, including high energy costs and strong competition from Asia. Many fear that if too much cheap steel enters the EU, local factories could suffer or even shut down. EU official Stephane Sejourne said that while other countries protect their industries, Europe cannot afford to let its own steel sector weaken. He also said the EU is working on new trade measures to keep steelmakers competitive in the long run.
The EU currently allows some steel imports without extra taxes, but anything beyond the set limit faces a 25% tariff. Since 2019, the EU has increased these limits by 25% to follow World Trade Organization (WTO) rules. However, the current system will expire in 2026, and the EU is now designing a stricter plan to replace it. The European Commission is also working on a bigger plan, called the European Steel and Metals Action Plan, to support the industry, with more details expected later this year.
