EU Targets Foreign Steel to Rescue Struggling Sector

Urged to act fast to rescue European steel from decline, the EU executive proposed hiking levies on steel imports to 50 percent, and slashing the volume allowed in before tariffs apply by 47 percent.

Last year alone, "18,000 direct jobs were cut in the steel industry, that's too many and it had to stop", EU industry chief Stephane Sejourne said.

The EU strategy mirrors the one embraced by Trump, who imposed 50-percent tariffs to keep out cheap metals from China, producer of more than half the world's steel. 

Sefcovic said the EU was taking "necessary, effective yet balanced" action to protect jobs and the economy, while industry group Eurofer hailed "a real lifeline" for the sector.

British steelmakers, however, voiced alarm at the impact of the move since 80 percent of their exports go to Europe. 

Sefcovic said the EU was not closing its market to imports from partners.

Under the proposal, import quotas will be reduced to 18.3 million tons a year, Brussels said, which is the total volume of steel the EU imported in 2013.

That year was chosen because the EU considers the market became unbalanced from that point on because of excess production, mainly due to China, which massively subsidises local steelmakers.

"The global overcapacity crisis is reaching critical levels," Sefcovic said, adding steel capacity would reach five times annual EU demand by 2027.

Subject to approval by the EU's member states and parliament, the proposal would permanently replace the current safeguard scheme, which imposes 25-percent duties beyond set import quotas, but ends next year.