Brussels - London: Europe and the Arabs
The Socialists and Democrats (S&D) in the European Parliament welcomed the European Commission's announcement of a new trade defense mechanism aimed at better protecting European steel production. A statement we received in Brussels said, "The new regulation, which is scheduled to replace the current safeguards that expire in June 2026, introduces country- and product-specific tariff quotas to protect the sector from unfair competition and sudden import surges."
The S&D group's statement added, "European steel producers are facing enormous pressure due to unfair trade practices, inadequate safeguards, and skyrocketing energy costs. Cheap imports from third countries are flooding the market, threatening thousands of jobs and the future of the industry in Europe.
Under the new system, once the free quota is exceeded, additional imports will be subject to significantly higher tariffs, meeting long-standing calls by the S&D group for stronger trade protection measures." Tariffs on products exceeding the quota could reach 50%, double the current 25%, while quotas will be significantly reduced to more accurately reflect market realities.
Kathleen van Brempton, SDA Vice-President for International Trade, said:
"These measures are not too late. They help stem the flow of excessively subsidized steel into our market, but that doesn't mean the sector is out of the woods yet. The Steel Action Plan proposes lower energy prices, amended public procurement rules, a scrap export ban, boosted domestic demand for European steel and aluminum, and revised state aid rules—all good measures. Now the Commission must implement these measures immediately."
Bernd Lange, SDA MEP for US relations, said:
"This new trade defense tool finally provides real protection for European steel. It is more flexible, targeted, and responsive than the old system, closing loopholes and preventing circumvention with clearer rules."
"However, this is just a first step." While this contributes to combating unfair competition, we must also push for leading green steel markets, incentives in key industries, and fair electricity prices to secure the future of the steel sector in Europe.
Brando Benevy, Coordinator of the Socialist and Democratic Alliance on the INTA Committee, added:
"Our political group has long called for stronger measures to protect European steel production, which is currently under severe pressure. The Commission's proposal is a good first step, but it must be seen as the beginning of a real change of pace. That's why the European Parliament will soon begin its work to strengthen its content. We need more effective European trade defense tools capable of protecting not only the steel sector, but all sectors affected by overcapacity and other serious distortions in the level playing field."
The statement concluded, "The current safeguard mechanism, implemented in 2019 in light of US steel tariffs, sets a ceiling on imports under a general quota system, but lacks country- and product-specific flexibility. The new mechanism uses tariff quotas with precise country allocations and stricter rules of origin for "melting and casting" to exclude steel with significant Chinese content. This move is in line with ongoing negotiations between the European Union and the United States regarding excess steel production capacity and aims to maintain compliance with the World Trade Organization by applying Article 28 of the GATT.
According to the European news network in Brussels, "Euronews," the European Union announced a doubling of tariffs on US steel imports to 50%, a move described by industry leaders as an "existential threat" to the UK steel industry.
Data indicates that approximately 80% of British exports are destined for EU countries, leaving the sector facing the biggest crisis in its history, especially after the previous 25% US tariff imposed by President Donald Trump earlier this year.
The European Commission presented a plan aimed at To reduce the duty-free quota and impose a requirement on foreign suppliers to disclose the location of steel melting and casting, to prevent Chinese products from entering the European market via third countries.
Stéphane Séjourné, the EU Commissioner for Industry, said during an event in Strasbourg that these measures aim to protect industry and enable it to invest, reduce emissions, and regain its competitiveness. He added that the new rules constitute a fundamental step in negotiations with the United States to demonstrate the EU's unified position against the dumping of Chinese steel on the market.
Warnings of an Industrial Crisis in the UK
Gareth Stice, head of the British Industry Federation, warned that doubling the EU tariffs would lead to "the biggest crisis the British steel industry has ever faced," calling on the government to take urgent measures to protect the sector from the influx of millions of tons of global steel into European and American markets. Stice explained that these imports could be "deadly for many of the remaining steel companies." Alasdair MacDiarmid, assistant general secretary of the Community union, described the new measures as an "existential threat" to the British steel industry.
Trade unions and industry leaders urged the UK government to immediately begin negotiations with the EU regarding the Customs-free quotas for countries, especially after the UK became the EU's largest export market. Meanwhile, the European steel industry faces similar challenges due to new US tariffs, rising energy costs, and cheap Chinese competition, threatening the partial or total collapse of some companies. The steel industry is a strategic industry, used in all vital infrastructure, from high-rise buildings, railways, and wind turbines to household appliances and tableware. Senior European officials indicate that the Chinese steel surplus is the "main problem," and that the situation has become "unsustainable and getting worse."
Details of the European Proposal
If approved, the tariff-free quota will be reduced by 47% to 18.3 million tons per year, a level not seen since 2013, with a 50% duty imposed on imports exceeding the quota.
Exporting countries will also be required to disclose the location of their steel smelting and casting to prevent circumvention of sanctions. The EU has confirmed that Norway, Iceland, and Liechtenstein will not be subject to quotas or tariffs due to their close trade ties within the European Economic Area.
In parallel, the EU is seeking to form a "metals alliance" with the United States to protect economies from overproduction. “The EU must act quickly and decisively before large parts of the steel industry and its value chains collapse,” said Henrik Adam, President of the European industry group Eurofer.