The European Commission has unveiled plans to follow US President Donald Trump’s lead in tightening steel import controls, announcing a proposal to halve the annual quota for tariff-free steel imports into the bloc and sharply raise tariffs on excess volumes.
Under the draft measures released on Tuesday (Wednesday AEDT), the quota would drop to 18.3 million tonnes, while the levy on imports above this threshold would jump to 50 per cent.
If adopted, the changes would take effect from the middle of next year, aimed at shielding European producers from cheap foreign steel.
The Australian Steel Institute (ASI) has cautioned against alarm over the plan, noting the move had been widely anticipated.
ASI chief executive Mark Cain said there were no surprises in the European announcement, apart from the formal confirmation of the tariff rate.
“It is a plan and has yet to be ratified,” he said.
“We will work with the Australian government to ensure the best possible outcome for the Australian steel industry.”
The development comes as the ASI prepares an application to the Australian federal government for a Safeguard action to counter a surge in cheap imported fabricated steel.
This proposed measure would apply temporary restrictions — such as tariffs or quotas — to protect local producers from market distortions.
Mark emphasised the potential risks posed by Europe’s move, describing the immediate challenge for the Australian industry as multi‑dimensional.
“Australian industry is being challenged on the supply side in multiple market fronts now – US + Canada + EU tariffs are likely to cause trade diversion,” he said.
He warned that the combined effect of tariffs across major economies was “exacerbating and entrenching the problem of excess global steel capacity”, adding that Australia’s open market left it “vulnerable and exposed” to steel that might otherwise have been sold elsewhere.
He noted that dumping — where excess steel is redirected into open markets — could harm domestic demand and put pressure on local operations.
“Whyalla steelworks sale prospects are likely to be impacted by this additional tariff development if there is an effect on accessible markets for their products,” Mark said.
As the peak body representing 700 companies and 7,000 members, the ASI underscores steel’s significance to the national economy, generating around 100,000 jobs and contributing $30 billion in revenue annually.
The institute maintains that safeguarding the sector amid shifting global trade policy is critical for the future viability of Australian steel manufacturing.
