【By Observer Net, Xiong Chaoran】"The EU wants to curb Chinese imports, bid farewell to free trade, and embrace protectionism."

On September 26 local time, the German newspaper Handelsblatt cited statements from senior officials in Brussels, reporting that the European Commission plans to impose tariffs of 25% to 50% on Chinese steel and related products in the coming weeks.

At the same time, the EU plans to link the granting of public contracts with the so-called "buying European products" rule — future subways, trains, and railway lines will be built using "European green steel"; it will also encourage large enterprises and car rental companies to prioritize purchasing European electric vehicles for their fleets through a quota system.

"Europe has no choice but to find a new balance," said Stephane Sejourne, Executive Vice President of the European Commission and Commissioner for Industrial Strategy, stating that the EU needs to reduce internal trade barriers, establish a truly functioning internal market, and also take protective measures to restore balance with partners who no longer abide by any rules.

However, Germany took a "cautious stance," with Deputy Chancellor and Finance Minister Lars Klingbeil stating that he actually supports free trade and opposes protectionism, but then shifted his tone, claiming that considering the industrial policies of China and the United States, "we should not be naive."

On July 4, 2025, Duisburg, western Germany. Visual China

Reuters reported that earlier this month, European Commission President von der Leyen hinted that due to global overcapacity leading to declining profit margins and making it more difficult for the European steel industry to invest in decarbonization, the European Commission will propose new steel import restrictions to protect domestic producers.

She added that the European Commission will introduce a new long-term trade tool to replace the steel safeguard measures that are about to expire. According to global trade rules, the EU cannot extend the existing steel safeguard measures beyond mid-2026.

The European Steel Federation (Eurofer) stated that in 2024, the EU imported 28 million tons of steel, accounting for a quarter of total sales, twice the amount of the 2012/13 season (when China became the main exporter). Due to Trump's tariff policy, the EU expects annual steel exports to the US of 3.8 million tons to drop significantly. France and 10 other EU member states hope to introduce similar U.S. "melting and casting" rules to prevent Chinese steel from bypassing tariffs via third countries.

Reuters cited analysts' forecasts that Chinese steel exports are expected to reach record highs this year, with growth ranging from 4% to 9%, reaching approximately 115 million to 120 million tons.

At the same time, European steel producers are also facing high tariffs of 50% imposed by the United States.

In March this year, U.S. President Trump announced a 25% tariff on all imported steel and aluminum, which came into effect on March 12 local time. In response to this tariff, the European Commission announced on March 9 that it would impose a 25% tariff on $21 billion worth of American products including soybeans, diamonds, orange juice, poultry, motorcycles, steel, aluminum, and tobacco. On May 30, Trump announced that the U.S. tariffs on imported steel and aluminum would be increased from 25% to 50%.

Following the EU-US trade agreement, the European Commission spokesperson stated on August 4 local time that the EU would suspend its two retaliatory measures against U.S. tariffs for six months. The suspended retaliatory tariffs include those responding to the U.S. tariffs on steel and aluminum products.

The Financial Times pointed out that even before Trump imposed a 50% tariff on EU steel products earlier this year, the EU steel industry was already struggling due to competition from Chinese imports and high energy prices. Tariffs imposed by Trump on other countries have also raised concerns that more low-cost steel products from the U.S. market may flood into the EU.

In fact, since the beginning of this month, under the pressure of cheap Chinese products and Trump's high tariffs, some European steel manufacturers have already urged Brussels to impose tariffs similar to those of the U.S. on all imported steel products, warning that the industry is at risk of collapse.

"We need protection, otherwise our steel industry will not survive," said Ilse Henne, Chairperson of the Supervisory Board of Thyssenkrupp's steel division, in an article published by the Financial Times on September 7 local time, stating that other key European industries such as the automotive sector depend on high-quality steel produced in Europe.

"Do we want to produce cars in Europe? Yes or no? Do we want to use European steel to produce cars? Yes or no? If, for various reasons, our answer is yes... then we must make some decisions," the report stated. As one of the pillars of German industrial strength, Thyssenkrupp and its steel division are currently undergoing a painful restructuring process, with the company having announced plans to cut steel plant capacity and lay off 11,000 employees.

Henne refused to disclose what tariff level she thought appropriate for steel entering the EU, but warned that even though internal demand remains weak, imports are still increasing. Previously, France and 10 other EU member states had suggested that tariffs of 50% should be imposed when imports exceed a certain quota, aiming to halve the volume of imports.

Previously, a spokesperson for the Chinese Foreign Ministry stated that China's development and opening up bring opportunities, not risks, to Europe and the world. Protectionism cannot solve the EU's problems; it protects backwardness and loses the future. China and the EU are each other's second-largest trading partners and important forces in building an open world economy. They should resolve specific trade issues through dialogue and consultation.

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