EU parliament adopts higher tariffs on foreign steel

BRUSSELS

The European Parliament gave its final approval Tuesday to double tariffs on foreign steel in a bid to protect the EU's beleaguered industry from cheap Chinese exports.

Lawmakers voted by 606 to 16 in favour of hiking levies on steel imports to 50 percent and slashing the volume allowed in before tariffs apply by 47 percent.

Under the new measures, which follow a proposal put forward by the European Commission last year, import tariff-free quotas will be reduced to 18.3 million tonnes a year -- the total volume of steel the EU imported in 2013.

That year was chosen as the EU finds the market became unbalanced from that point on because of excess production -- mainly due to China, which massively subsidises local steelmakers and now produces over half the world's steel.

"Europe needs a strong and competitive steel industry built on trade, innovation and fair competition. Combatting the negative trade effects of global overcapacity is essential," said EU lawmaker Karin Karlsbro, who pushed the deal through parliament.

The measures will become law after EU states give their final green light and will kick in from July 1, 2026.

The EU strategy mirrors the one embraced by US President Donald Trump, who slapped 50-percent tariffs to keep out cheap metals from China.

The EU has been urging the United States to lower steel levies on the bloc.