Brazil criticizes new EU restrictions on steel
Brazil has criticized the new measures adopted by the European Union (EU) to restrict imports of steel products. In a joint statement, the Ministries of Foreign Relations and of Development, Industry, Trade, and Services stated that the changes reduce access to the European market and do not represent a solution to excess capacity in the global steel industry.
According to the Brazilian government, the EU has adopted new quantitative restrictions on the import of steel products and raised tariffs on imports that exceed the established quotas.
From Brazil’s perspective, the measures affect most of the bloc’s trading partners and increase barriers to exports, even after the end of the safeguard system established in 2018.
Brazil also stated it is affected by global steel overproduction and will continue to advocate for multilateral solutions to the problem in international forums. The statement adds that restricting trade with countries that are not responsible for the global oversupply does not resolve the issue and may trigger an escalation of trade defense measures.
The government also reported that no agreement was reached with the European Union regarding compensation for the new tariffs, as stipulated in Article XXVIII of the General Agreement on Tariffs and Trade (GATT). It added that it will continue negotiating with the European Union to seek a solution deemed acceptable to both parties.
New rules
The European Commission announced that the volume of steel that can enter the bloc without paying tariffs will be reduced by 47 percent to 18.3 million metric tons per year.
If this limit is exceeded, a 50 percent tariff will be applied to the excess in 26 categories of steel products. In practice, exporters will be able to sell a smaller quantity of steel without additional costs and will pay a higher tariff if they exceed the quota.
Half of the quotas will be allocated to countries that have free trade agreements with the European Union. The other half will be available to all trading partners, while some countries will have specific limits set based on their export history.
Justification
The European Commission states that the changes are necessary to protect the bloc’s steel industry from global steel overproduction, which increases supply and puts downward pressure on international prices.
The commission also cites dumping practices – the export of products below cost – and claims that the measures aim to raise capacity utilization at European steel mills to about 80 percent, up from the current 65 percent.
The new rules replace the safeguard system adopted by the EU in 2018. Until now, steel imports into the bloc that exceeded quotas were subject to a 25 percent tariff. Under the new system, the tariff rises to 50 percent, while the volume allowed without tariffs is reduced by nearly half.
The European Commission states that the steel sector has lost about 100,000 jobs since 2008 and that restrictions are required to curb the effects of global oversupply and strengthen the bloc’s industry.
In 2025, the main suppliers of steel to the European Union were Turkey, South Korea, Indonesia, China, India, Ukraine, and Taiwan.
