27 November 2025 – The Commission wants to turn back time to 2013 with its steel tariffs and import quotas – even though the European economy has grown by more than 19% since 2013. The 1994 GATT Agreement, to which the EU is also bound, does not allow such a substantial reduction of import volumes. The numerical and linguistic sleights of hand used by the Commission to disguise this call for a breach of WTO agreements must not be implemented. A commentary by Thorsten Gerber.
- Steel import quotas at 2013 levels simply unrealistic
- EU steel producers must import 75% of their iron ore needs
- Almost 9 million tonnes of steel slab imports per year
- WTO-compliant introduction of quotas clearly defined in the GATT Agreement
- Commission proposal full of trickery
- Large corporations take quotas away from SMEs
- Downstream industry must now act for changes
- Double taxation through steel tariffs and CBAM
Steel import quotas at 2013 levels simply unrealistic
The Commission wants to turn back time to 2013 with its steel tariffs and import quotas – even though the European economy has grown by more than 19% since 2013. Moreover, we have been able to increase the value of European exports by more than 45%, thus generating a trade surplus of over 140 billion euros in 2024.
Europe is fundamentally dependent on imports for this success. Not only for semiconductors, rare earth elements, or raw materials such as iron ore, and energy carriers such as natural gas or oil.
EU steel producers must import 75% of their iron ore needs
For example, domestic steel producers must cover 75% of their iron ore needs through imports. They also purchase millions of tonnes of steel slabs in Russia, China, Brazil, and Vietnam and process them into flat steel products in their rolling mills in Europe. Neither iron ore nor slabs are subject to tariffs or other safeguard measures, nor has the Commission expressed any intention to impose tariffs or quotas on them.
Almost 9 million tonnes of steel slab imports per year
Do you also ask yourself why that is? In the case of iron ore, it may still make sense, as it is hardly mined in Europe anymore. But with almost 9 million tonnes of imported steel slabs and the supposedly unused capacities of domestic steel producers, it makes little sense. A loophole that has remained wide open for domestic steel producers since the introduction of Safeguard.
WTO-compliant introduction of quotas clearly defined in the GATT Agreement
But just as EU steel producers must import their iron ores and apparently also their steel slabs, the downstream industry needs imports of steel products. Not at the level of 2013, but at a realistic and WTO-compliant volume based on the average of the last 3 to 4 years – just as defined in the GATT Agreement for the introduction of tariff rate quotas.
Commission proposal full of trickery
The numerical and linguistic sleights of hand used to disguise the Commission’s trickery and call for a breach of WTO agreements must not be implemented. It is therefore not surprising that the Commission and the steel lobby are exerting immense pressure to push the steel tariffs and quotas through as uncritically and quickly as possible – the potential breach of international law appears to be well known there and willingly accepted.
Large corporations take quotas away from SMEs
The economic damage that would result from these tariffs and quotas would be enormous. 3% of large corporations in Europe import 57% of all steel. With quotas at 2013 levels and the adoption of the first-come-first-served principle from the Safeguard measure, small and medium-sized companies end up at the back of the quota with empty hands – because the large corporations have overrun them beforehand. And SMEs would be forced to swallow the overpriced prices of an all-powerful European steel oligopoly or go bankrupt.
Downstream industry must now act for changes
To prevent exactly that, we are on the ground again this week in Strasbourg in the EU Parliament. Together with several other entrepreneurs, we have already attempted in recent weeks to introduce changes into the design of the Commission’s proposal. Even though some movement on tariffs and quotas has already been seen in the EU Parliament, we need even more pressure from the downstream industry. Because if the steel producers destroy us with their excessive demands, who is supposed to buy their products afterwards?
Double taxation through steel tariffs and CBAM
Because in addition to the tariffs, we are now also supposed to bear the costs for CBAM. A completely chaotic measure with which the Commission wants to burden us with exaggerated CO2 emissions and an additional 30% penalty. Because, as we all know, these taxes are not paid by producers outside Europe, but by us as domestic companies and ultimately by consumers and citizens.
We are explicitly against tariffs and quotas. We stand for free trade and open markets. Fairness applies in all directions – but in the Commission’s proposals there is neither a level playing field nor any fairness to be found. You want to support us? Then feel free to contact us directly – by phone at +49 7642 9282851 or write to us here info@steelnews.biz or on LinkedIn.
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