European Union lawmakers and member states agreed on Monday to double tariffs on foreign steel to 50 percent to protect the bloc's industrial sector from a surge of cheap Chinese imports.
Under the late-evening agreement, the EU will also reduce the volume of steel allowed into the bloc without duties by 47 percent. The new measures replace the current safeguard scheme, which imposes 25 percent duties on imports exceeding set quotas.
EU trade chief Maros Sefcovic stated that the health of Europe's steel sector is vital to the continent's strategic autonomy. He warned that the bloc cannot ignore global overcapacity levels that have reached critical points.
Protecting European industrial strength
"Today's outcome helps bring much-needed stability for our producers to thrive in Europe," Sefcovic said.
The new deal reduces tariff-free import quotas to 18.3 million tons per year. This figure matches the total volume of steel the EU imported in 2013, a year the bloc identifies as the point when the market became unbalanced due to excess production.
European officials point to China as the primary driver of this imbalance. Chinese steelmakers receive massive state subsidies and currently account for more than half of the world's steel production.
The updated tariffs will apply to all imported products except those from European Economic Area members Iceland, Liechtenstein, and Norway.
The agreement remains provisional. It requires formal endorsement from the European Council and the European Parliament before official adoption.
