The Observer Network by Nguyen Jaki
On the 1st local time, the British "Financial Times" quoted people familiar with the matter as saying that the EU plans to follow the example of the United States and Canada and take action against China's imported steel.
According to two people familiar with the talks, at an emergency meeting held on Wednesday, EU Industrial Strategy Commissioner Stephane Stephane Sejourne promised industry executives and trade unions that the European Commission would "cut foreign steel import quotas to half of (2024 levels)" and "significantly increase tariffs in light of the initiatives of American and Canadian partners", imposing tariffs of up to 50% on foreign steel.
It is that as part of the industrial recovery plan, U.S. President Trump has imposed tariffs of 50% on imported steel.The Canadian government has also recently imposed import restrictions on countries that have not signed a trade agreement with it.
He added that at the meeting he said the new rules would not set time limits, as opposed to the existing safeguards that expire next year and impose a 25% tariff.He also specifically mentioned China, claiming that the EU should never continue “innocently”, “we refuse to open markets unlimited to foreign overcapacity, and we refuse to accept dumping prices resulting from mass subsidies.”
The new regulations, however, need to be approved by a majority of the European Parliament and the EU Member States. Although France and 10 other member states have proposed the measure, some countries remain concerned that such restrictions could increase inflation and weaken the competitiveness of steel downstream manufacturers. The European Automobile Industry Association (ACEA), which represents automotive manufacturers, has warned of the impact of the measure and demanded that it be set as a temporary measure and allow for re-evaluation.
Last week, Germany also expressed a "cautious attitude" about this. German Deputy Chancellor and Finance Minister Lars Klingbeil said at the time that he actually supported free trade and opposed protectionism, but changed the subject and claimed that considering the industrial policies of China and the United States, "we should not be naive".
Local time July 4, 2025, Duisburg, West Germany, Thyssenkrupp Steel Plant. Vision of China
The report also mentions that the EU hopes the move will satisfy Washington.The EU is taking action to prevent Chinese steel from flowing into major global markets in exchange for the U.S. reducing 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 the EU needs to convince the United States that it will not become a "channel" for China's metal products to enter the U.S. market.
“The U.S. government attaches great importance to the rules of origin in the steel negotiations, and they will be very strict in ensuring that all steel that meets the conditions of any duty-free or tariff quota procedures is entirely produced in areas benefited by the agreement.”
However, some EU member states and industries have warned that restrictions on low-cost steel imports could push commodity prices up. Ignoring the concerns of many parties, Zürne arrogantly said that “a minority of stakeholders” could try to hinder the initiative, and he called for support from all parties to “overcome resistance.”
Earlier this month, European Commission President Von der Leyen said that the European Commission will propose a new steel import restriction to protect domestic producers as global overcapacity leads to a decline in profits and makes it more difficult for the European steel industry to push for decarbonisation investment.
She added that the European Commission would propose a new long-term trade tool to replace the expiring steel safeguards. Under global trade rules, the EU cannot extend existing steel safeguards beyond mid-2026.
According to data from the European Steel Industry Federation (Eurofer), EU steel imports amounted to 28 million tons in 2024, accounting for a quarter of total sales, which was twice as much as imports in 2012/13 (China became a major exporter).In addition, under the influence of U.S. President Trump’s tariff policy, the EU is expected to significantly reduce its 3.8 million tons of steel exports annually to the U.S. France and the other 10 EU member states including Italy and Spain are hoping to introduce US-like “melting and irrigation” rules to prevent Chinese steel from bypassing tariffs through third countries into the EU market.
According to analysts' forecasts, China's steel exports are expected to reach a new record high this year, with a growth rate of 4% to 9%, and total exports, or up to 1,15 billion tons to 1,2 million tons.
The British "Financial Times" previously pointed out that long before Trump imposed a 50% tariff on EU steel exports to the United States earlier this year, the European steel industry was already struggling in the face of competition from imported products from China and high energy prices. Trump's tariffs on other countries have also raised concerns that more low-cost steel products diverted from the U.S. market will flood into the EU.
Since the beginning of September, under the pressure of high-quality Chinese products and Trump's high tariffs, some European steelmakers have urged Brussels to impose tariffs similar to those of the United States on all imported steel products, warning that the industry is at risk of collapse.
"We need protection or our steel industry will not survive." Ilse Henne, chairman of the Supervisory Board of Germany's ThyssenKrupp Steel division, said at the time that other key European industries such as automobile manufacturing relied on high-quality steel made locally in Europe.
As one of the pillars of German industrial strength, Tyssenkrupp and its steel sector are currently in a difficult restructuring phase, the company has announced plans to cut steel plant capacity and cut 11,000 jobs.
Henne declined to disclose the level of tariffs she thought would be appropriate to impose on steel products entering the EU. Previously, France and 10 other EU member states had suggested imposing a 50% tariff if steel imports exceeded a specific quota, in order to halve EU steel imports.
China’s development and opening up to Europe and the world is an opportunity, not a risk.Protectionism cannot solve the EU’s problems, protection is backward, and the future is lost.China and Europe are each other’s second largest trading partner, and are important forces in building an open world economy, and should solve specific economic and trade issues through dialogue and consultation.
Exclusive texts of this section are not reproduced without authorization.