Trade Cases
European Commission eyes stricter limit on tariff-free steel imports
Written by Ethan Bernard
March 25, 2025
The European Commission is stiffening its grip over the amount of tariff-free foreign steel that can enter the EU.
The EC has reduced the “liberalization rate” from 1% to 0.1%, thus curbing the increase in the quantity of steel that can be imported tariff-free into the trading bloc.
The EC said “liberalization rate” is defined as the annual rate dictated by the World Trade Organization by which duty-free imports, that are restricted under protective measures, is increased.
Also, the EC noted that countries will no longer be able to use the entire volumes of unused quotas from other countries, including those of Russia and Belarus.
Another limit is that the “carry-over” mechanism, where countries can roll over unused quotas to the following quarter, will be limited in categories with “high import pressure and low consumption.”
Most adjustments will enter into effect on April 1, the EC said. However, two go into effect on July 1: the slower pace of liberalization and the removal of the “carry-over” of unused volumes in certain categories.
“These changes come as the EU steel industry faces intense pressure from global overcapacity, rising exports from China, and increasing trade barriers in key markets like the US,” the EC said in a statement on Tuesday.
This is also on the heels of the EC releasing “A European Steel and Metals Action Plan” last week that will alter the current “steel safeguard” measure, which will legally lapse on June 30, 2026.
In a separate but related release last week, Stéphane Séjourné, EC executive vice president of prosperity and industrial strategy, said the EU is aiming for a drop of up to 15% in steel imports beginning in April.
Ethan Bernard
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