The European Union plans to hike tariffs on its steel imports to 50%, according to a draft proposal seen by Bloomberg. The move will align the bloc's rate with the US, which has sought to push back against overcapacity from China.
The EU currently has a temporary mechanism in place to safeguard its steel industry, which imposes a 25% duty on most imports once quotas are exhausted. That mechanism expires next year and the EU has been working to replace it with a more permanent instrument, which it plans to unveil next week.
The European Commission, which handles trade matters for the EU, plans to boost the tariff rate to 50% βto minimize the risk of trade diversion,β according to the draft. The higher rate would apply to imports once a certain quota is reached.
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The plans outline quotas for specific product types based on historical averages. The commission is also seeking powers to set out country-specific quotas for the various thresholds.
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