EU proposes cutting steel import quotas by 15%

The European Union will tighten steel import quotas to reduce inflows by a further 15% from April, a senior EU official said on Wednesday, in a move aimed at preventing cheap steel flooding the European market after Washington imposed new tariffs.

European steel producers already battling high energy prices and competition from Asia and elsewhere warn that the EU risks becoming a dumping ground for cheap steel diverted from the U.S. market, which could kill off Europe’s plants.

“During a period when nobody is respecting WTO (World Trade Organization) rules and everyone refers to national security… the EU can’t be the only continent that lets its industry fall apart,” European Commission Executive Vice-President Stephane Sejourne told Reuters.

Given the U.S. market was now making less commercial sense with a 25% tariff imposed by President Donald Trump’s administration in place, Sejourne forecast that producers from Canada, India and China would look to sell increasing volumes in Europe.

The CEO of Europe’s No. 2 steel maker, Thyssenkrupp, said on Wednesday the United States imported around 23 million metric tons of steel last year, volumes that were now looking for other destinations, including Europe, as a result of import tariffs.