The European Union has unveiled a plan to impose a 50% tariff on steel imports exceeding a newly reduced annual quota, as part of an effort to stabilise its steel sector amid mounting global overcapacity.
According to the European Commission, the EU’s executive body, the bloc’s steel industry is under considerable strain from what it describes as an “acute imbalance” in global production capacity—estimated to be more than five times Europe’s annual consumption. The move aims to bolster domestic manufacturers while maintaining compliance with World Trade Organization (WTO) principles.
Under the proposal, the EU will cut its tariff-free steel import quota from roughly 35 million to 18.3 million metric tonnes per year. Imports that exceed this volume will incur a 50% tariff—twice the current rate. The measure will also introduce new traceability requirements, compelling exporters to disclose the origins of steel production, including where it was melted and poured.
European Commission President Ursula von der Leyen said the proposal was essential to protecting Europe’s industrial foundation. “Global overcapacity is damaging our industry. We need to act now,” she stated.
The move follows similar trade measures by the United States and Canada, both of which have tightened restrictions on foreign steel this year. Washington imposed a 50% tariff on nearly all steel and steel-containing products, while Ottawa has signalled its intention to strengthen its own duties.
Although Norway, Iceland, and Liechtenstein—all members of the European Economic Area—will remain exempt from the new duties, Switzerland and the United Kingdom will be affected. The European Commission identified China, Vietnam, India, Turkey, and the United Kingdom as leading sources of steel imports to the EU in 2024.
EU officials argue that the measure is both defensive and forward-looking, aimed at securing the future of a sector that has shed approximately 65 million tonnes of capacity since 2007 and employs about 300,000 people directly across more than 20 member states.
According to Stephane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy, “An industrial future for Europe is impossible without a vibrant and resilient steel industry. This proposal is the first step for our industry to regain competitiveness.”
The European Commission also emphasised that discussions with global partners would continue, particularly within the framework of the Global Forum on Steel Excess Capacity, which meets this week alongside the G-20 Trade and Investment Ministers in South Africa. Commissioner for Trade and Economic Security Maros Šefčovič noted that the EU remains open to country-specific allocations and to fostering collective solutions to the challenge of overcapacity.
“EU trade is about fair, rules-based competition,” Šefčovič said. “This measure will help our steel industry compete fairly amid increasing global overcapacity.”
While the EU’s actions reflect mounting concern in industrialised economies about safeguarding domestic manufacturing, they also highlight a broader global issue—the uneven distribution of industrial growth and trade exposure, particularly in developing and emerging economies.
For African economies, where steel demand is tied closely to infrastructure development, the EU’s new trade position may have indirect implications. The tariff adjustment could influence steel prices and global trade flows, potentially affecting access to affordable imports for African construction and manufacturing industries. Policymakers across Africa are likely to observe the unfolding developments carefully, especially as the African Continental Free Trade Area (AfCFTA) continues its work to harmonise trade standards and reduce external dependency.
Šefčovič indicated that the EU hopes the measure might also serve as a catalyst for renewed dialogue with Washington, following the U.S.-EU agreement earlier this year introducing a 15% tariff on most bilateral trade goods, while retaining higher duties on steel and aluminium. “I hope this will help us begin a discussion on ring-fencing and address the issue of steel derivatives, which represent a significant cost burden for our exporters,” he added.
The European Parliament and the Council must still approve the measure before it takes effect.
As global markets react, the EU’s proposal may serve as a defining moment in how industrialised regions recalibrate trade policies amid persistent supply imbalances. For Africa, it underscores once again the importance of pursuing industrial self-sufficiency, while engaging multilaterally to ensure global trade remains fair, inclusive, and development-oriented.
