【By Observer Net, Ruan Jiaqi】
On the 1st local time, the UK's Financial Times cited sources who said that the European Union plans to follow the example of the United States and Canada by taking action against Chinese steel imports.
According to two people who were aware of the discussions, at an emergency meeting held on Wednesday, EU Industry Strategy Commissioner Stephane Sejourne promised industry executives and unions that the European Commission would "cut foreign steel import quotas to half of the 2024 level" and "significantly increase tariffs, imposing a maximum tariff of 50% on foreign steel", according to the measures taken by the United States and Canada.
It is reported that as part of the industrial re-shoring plan, President Trump of the United States has imposed a 50% tariff on imported steel. The Canadian government has recently implemented import restrictions on countries that have not signed trade agreements with it.
These people added that Sejourne stated in the meeting that the new regulations will not set a time limit, which is different from the current safeguard measures system that expires next year and imposes a 25% tariff. He also specifically mentioned China, claiming that the EU cannot continue to be "naive", "we refuse to open our market unlimitedly to foreign overcapacity, and we refuse to accept dumping prices caused by large-scale subsidies".
However, the new regulation needs to be approved by a majority vote of the European Parliament and EU member states. Although France and 10 other member states have proposed implementing this measure, some countries are still concerned that such restrictions may exacerbate inflation and weaken the competitiveness of downstream steel product manufacturers. The European Automobile Manufacturers Association (ACEA), representing car manufacturers, has issued warnings about the impact of this measure and has requested it to be temporary and allow for reassessment.
Last week, Germany also expressed a "cautious attitude." German Vice Chancellor and Finance Minister Lars Klingbeil said at the time that he actually supports free trade and opposes protectionism, but then turned around and claimed that considering the industrial policies of China and the United States, "we should not be naive."
On July 4, 2025, Duisburg, western Germany, Thyssenkrupp steel plant. Visual China
The report also mentioned that the EU hopes this move will satisfy Washington. The EU is taking action to prevent Chinese steel from flooding global major markets, in exchange for the US lowering its tariffs on the EU.
Payne Griffin, who served as a senior official in the Office of the U.S. Trade Representative during Trump's first term, said that the EU needs to convince the U.S. that the EU will not become a "channel" for Chinese metal products entering the U.S. market.
Griffin pointed out: "The U.S. government places great importance on origin rules in steel negotiations, and they will strictly ensure that all steel that meets the conditions for any duty-free or tariff quota procedures is completely produced in the region benefiting from the agreement."
But some EU member states and industries warned that restricting cheap steel imports could drive up commodity prices. Ignoring multiple concerns, Sejourne arrogantly stated, "A minority of interest groups" might try to block this initiative, and he called on everyone to support it to "overcome resistance."
According to Reuters reports, earlier this month, President von der Leyen of the European Commission hinted that due to global overcapacity leading to declining profits, and making it more difficult for the European steel industry to advance decarbonization investments, the Commission will propose a new steel import restriction measure to protect domestic producers.
She added that the Commission will propose a new long-term trade tool to replace the upcoming steel safeguard measures. According to global trade rules, the EU cannot extend the existing steel safeguard measures beyond mid-2026.
According to data from the European Steel Federation (Eurofer), in 2024, the EU imported 28 million tons of steel, accounting for a quarter of total sales. This import volume is twice that of the 2012/13 season (when China became the main exporter). In addition, due to the U.S. President Trump's tariff policy, the EU expects that the 3.8 million tons of steel exported annually to the U.S. will be significantly reduced. France and 10 other EU member states, including Italy and Spain, hope to introduce similar U.S. "melting and casting" rules to prevent Chinese steel from bypassing tariffs through third countries to enter the EU market.
Reuters cited analysts' forecasts that Chinese steel exports are expected to reach a record high this year, with an increase of 4% to 9%, and the total export volume may reach 115 million to 120 million tons.
The Financial Times previously pointed out that even before Trump imposed a 50% tariff on EU steel products this year, the European steel industry was already struggling due to competition from Chinese imports and high energy prices. Tariffs imposed by Trump on other countries also triggered concerns that low-priced steel products from the U.S. market would flood into the EU.
Since early September, under the pressure of cheap Chinese products and Trump's high tariffs, some European steel manufacturers have urged Brussels to impose tariffs similar to those of the U.S. on all imported steel products and warned that the industry faces the risk of collapse.
"We need protection, otherwise our steel industry will not survive," said Ilse Henne, Chairperson of the Supervisory Board of the Thyssenkrupp Steel Division in Germany, stating that key European industries such as the automotive industry depend on high-quality steel produced domestically in Europe.
The report states that Thyssenkrupp, one of the pillars of German industrial strength, and its steel division are currently in a difficult restructuring phase. The company has announced plans to cut steel mill capacity and lay off 11,000 employees.
Henne refused to disclose the tariff level she believes is appropriate for steel products entering the EU. Previously, France and 10 other EU member states had suggested that if steel imports exceed a specific quota, a 50% tariff would be imposed, aiming to halve the EU's steel imports.
Regarding Sino-European trade issues, the spokesperson for China's Ministry of Foreign Affairs 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 the backward 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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