Impact of tariffs and quota systems on downstream steel manufacturing in the EU

Subject: Impact of tariffs and quota systems on downstream steel manufacturing in the EU

The downstream steel manufacturing sector in the EU is facing critical challenges, exacerbated by the existing tariffs and quota systems on raw material imports. While intended to protect local industries, these measures are inadvertently placing enormous financial burdens on European manufacturers who rely on competitively priced raw materials.

Domestic downstream steel manufacturers frequently grapple with rising costs due to tariffs ranging from 25 % to 35 % on essential materials such as hot rolled and alloy steels, making it increasingly difficult to maintain their market position. Alongside this constraint, imported steel products and derivative steel articles, often produced with subsidised steel, circumvent anti-dumping tariffs and countervailing duties through origin misrepresentation and exports routed via warehouses based in non-EU countries. This situation allows these products to enter the EU market at lower prices, thereby avoiding the application of tariffs.

In the light of these circumstances:

1. What measures does the Commission intend to implement to safeguard downstream industries from unfair competition posed by imported products, particularly those made from subsidised steel coils?

2. Will the Commission consider revising the current tariff structures to impose them on finished goods in proportion to the raw materials used in production, thereby levelling the playing field for EU manufacturers?

Submitted: 11.3.2025