By Edith Hancock
The European Union will limit the amount of tariff-free steel its member states can import from Wednesday, as part of officials' efforts to protect its steel industry from overcapacity from countries like China.
The bloc's new system would cut tariff-free steel import volumes by 47% to 18.3 million metric tons, while imports above that quota would face a higher 50% levy in 26 categories of steel products. The European Commission said on Tuesday that half of that 18.3 million ton tariff-free quota is set aside for countries with free-trade agreements with the EU, with the other half available to all trading partners, including those with FTAs.
The commission said the move is designed to cushion the impact of its levy change on countries it has closer ties with. It said that many countries with FTAs will receive country-specific quotas reflecting their historic import volumes.
The measures, which were originally proposed by the commission in 2025, also requires exporters to outline where melting and pouring to produce steel took place to make it easier to trace imports.
"We are providing market participants with predictability through clear and transparent quota distribution rules, while applying a fair and objective methodology," Maros Sefcovic, the bloc's top trade negotiator, said in a statement Tuesday.
The EU is seeking to safeguard its steel sector from a glut of products in the market, which the commission said currently sits at 620 million tons.
Write to Edith Hancock at edith.hancock@wsj.com