The European Commission is preparing to dramatically tighten restrictions on steel imports by cutting quotas by nearly half and doubling tariffs on excess volumes to 50%, according to sources briefed on the details who spoke to Reuters on Wednesday. The aggressive new measures, set to be officially unveiled on October 7, would align the European Union’s steel protection policies with tariff rates already imposed by the United States and Canada as Western allies coordinate efforts to combat massive overcapacity created by subsidized Chinese steel factories.

Stephane Sejourne, the European Commission’s executive vice president for industrial strategy, briefed steel associations and unions on Wednesday ahead of next week’s public announcement. While he did not divulge specific details during the briefing, sources familiar with the plans revealed the scope of the proposed changes:

Steel Import Quota Cuts: The Commission will propose slashing current steel import quotas by approximately 50%. This represents a dramatic escalation from the 15% quota tightening that took effect on April 1, 2025.

Tariff Increase To 50%: Duties on steel volumes exceeding the new, lower quotas would be raised from the current 25% to 50% – matching tariff rates imposed by both the United States and Canada.

Timeline: The new package for the steel sector will be officially presented on October 7, 2025. Current steel safeguards are set to expire on June 30, 2026.