Why are EU steel tariffs being doubled to 50 per cent?

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EU Doubles Steel Tariffs to 50 Per Cent to Protect Domestic Industry

The European Union is doubling tariffs on foreign steel imports to 50 per cent and significantly reducing the volume allowed before these tariffs apply. This decision aims to protect the EU's struggling steel sector from a surge of cheap exports, particularly from China, which is seen as contributing to global overcapacity. The new measures are set to replace an existing safeguard scheme that expires at the end of June.
Shielding Against Cheap Chinese Exports

EU lawmakers and countries reached an agreement to increase levies on imported steel to 50 per cent, a substantial hike from previous levels. This move is specifically designed to counter what is described as a "flood of cheap Chinese exports" that are undermining the bloc's domestic industry. The EU's trade chief, Maros Sefcovic, commented that the global overcapacity in steel has reached critical levels, necessitating action to ensure stability and allow European producers to thrive.
Reducing Tariff-Free Import Quotas

Under the new agreement, the volume of steel that can be imported into the EU without incurring tariffs will be reduced by 47 per cent. The new tariff-free quota will be set at 18.3 million tonnes per year. This volume is based on the total amount of steel the EU imported in 2013.
Addressing Market Imbalance Since 2013

The year 2013 was chosen as the benchmark because the EU considers the steel market to have become unbalanced from that point onwards. This imbalance is attributed to excess production, with China being identified as the primary contributor. China significantly subsidises its local steel manufacturers and now produces more than half of the world's steel output, exacerbating global oversupply issues.
Scope of New Measures and Next Steps

These enhanced tariffs and reduced quotas will apply to imported steel products from all countries, with the exception of European Economic Area members: Iceland, Liechtenstein, and Norway. The provisional deal requires official endorsement from the European Council, representing member states, and the parliament before it can be formally adopted. The current safeguard scheme, which imposes 25 per cent duties beyond set quotas, will cease to be in effect at the end of June, paving the way for the new measures.

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Why are EU steel tariffs being doubled to 50 per cent?

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