Regarding China? EU imposes tariffs on imported steel to 50%, experts say typical trade protectionism

According to Agence France Presse, the European Parliament overwhelmingly voted on the 19th to pass an unprecedented steel protection measure, raising import tariffs on steel to 50% and significantly reducing duty-free import quotas. European media hyped up that the EU's move aims to protect the steel industry from China's impact. However, Reuters reported that in 2025, Türkiye, South Korea and Indonesia will be among the top three major sources of steel imports from the EU, while China will only be the fourth.

According to a press release released by the European Parliament, the EU's new regulations will limit the annual quota for duty-free imported steel to 18.3 million tons, a significant decrease of 47% compared to 2024. In addition, tariffs on imported steel exceeding quotas will be significantly increased from the current 25% to 50%. The EU stated that this move aims to help the EU steel industry cope with the negative impact of global overcapacity.

In addition, the EU's new regulations have strengthened the traceability of imported steel by introducing the "melting and casting" rule. The origin of imported steel will be determined by the location of its first melting and casting, in order to avoid exporting to the EU through third countries.

According to reports, this measure was proposed by the European Commission in October last year and received political support from member states in mid April this year. It has now been officially passed by the European Parliament and is only awaiting final approval from the 27 member states of the European Union before it can take effect on July 1st. Agence France Presse believes that the EU's legislative process has significantly accelerated this time, as the current steel protection mechanism will expire at the end of June, and European steel companies are concerned that if new measures are not introduced in a timely manner, it will be more difficult to resist Chinese steel competition.

The European Parliament's press release did not directly name steel exporting countries. Reuters reported that last year, the main sources of EU steel imports were Türkiye, South Korea, Indonesia, China, India and Ukraine. Huatai Futures analyst Kuang Zhipeng stated in a recent report that China's steel industry has advantages in the industrial chain, and the export pattern is undergoing profound structural adjustments. The export destinations are showing a clear trend of shifting from traditional developed markets to emerging market countries, which reveals the strategic adjustments of Chinese steel enterprises in response to changes in the international environment.

The Chinese side has repeatedly refuted the argument of "overcapacity in China". Foreign Ministry spokesperson Guo Jiakun previously stated that the so-called overcapacity is essentially a concern of relevant countries about their competitiveness and market share, with the intention of using it as an excuse to implement protectionist measures. Excess is anxiety, not production capacity.

Professor Cui Hongjian from the Institute of Regional and Global Governance at Beijing Foreign Studies University told Global Times reporters on the 20th that the EU's unilateral imposition of steel tariffs is a typical form of trade protectionism. This approach violates WTO rules and is not conducive to the healthy development of the global steel industry. The cooperation between China and Europe in the steel industry has natural rationality and necessity, and imposing tariffs is not the correct way to solve the lack of competitiveness in the local steel industry. Artificially cutting off the cooperation of the China Europe industrial chain is not conducive to the enterprises of both sides, and will also be detrimental to the economic development of the EU itself.