FX.co ★ EU Plans 25%-50% Tariffs on Chinese Steel Imports

The European Commission is set to implement tariffs ranging from 25% to 50% on Chinese steel and related items in the near future, according to Handelsblatt, which cited senior officials in Brussels, as reported by Reuters. The Commission has yet to provide an official statement on this decision. Earlier this month, Commission President Ursula von der Leyen announced that the European Union would propose a new strategy aimed at reducing steel imports, with the intention of safeguarding domestic manufacturers. This strategy addresses ongoing global overcapacity issues that continue to impact profit margins and obstruct investment in the European steel industry's decarbonization efforts. Von der Leyen also mentioned that the Commission plans to establish a new long-term trade mechanism to succeed the existing steel safeguards, which are due to expire by mid-2026 according to international trade regulations. Concurrently, forecasts from analysts suggest that Chinese steel exports could hit unprecedented levels this year, with an expected increase of 4% to 9%, reaching approximately 115 million to 120 million metric tons.