EU plans tariffs of 25%-50% on Chinese steel and related products: Report

The European Commission plans to impose tariffs of 25% to 50% on Chinese steel and related products in the next few weeks, German business daily Handelsblatt reported citing senior officials in Brussels.

The European Commission had no immediate comment.

The Commission's President Ursula von der Leyen had said earlier this month it would propose a new method to curb steel imports to protect domestic producers, as global overcapacity was straining margins and making it harder for Europe's steel industry to invest in decarbonisation.

She added the Commission would propose a new, long-term trade instrument to succeed the expiring steel safeguards. Under global trade rules, the bloc cannot prolong existing steel safeguards beyond mid-2026.

China's steel exports, meanwhile, are expected to hit an all-time high this year, rising between 4% and 9% to about 115 million to 120 million metric tons, according to forecasts from analysts.

More than half of the world's steel is produced by China, which is in need of new markets after a prolonged property sector slump has dampened domestic market consumption.

Roughly 54 tariffs and other trade barriers have been initiated against Chinese steel from 2024, according to China Trade Remedies Information, with analysts saying more exports will encourage further curbs.

European steel producers also face U.S. tariffs of 50%.

The European Union had, in late July, started monitoring imports and exports of scrap metal including steel, aluminium and copper after stark industry warnings of shortages and the risk of smelter shutdowns.

EU smelters have been struggling for some time to secure supplies of scrap metal, which is a major input and an integral part of the bloc's push to reduce carbon emissions.