The European Union has unveiled a contentious proposal to significantly reduce its tariff-free quota on steel imports, a move that could impose hefty tariffs on products from countries such as China, India, Turkey, and the United Kingdom. Under the new plan, imports exceeding 18.3 million tons will face a 50% tariff, doubling the current rate of 25%. Neighboring nations like Norway, Iceland, and Ukraine are exempt from these measures. The proposal aims to protect Europe’s steel industry from global overcapacity and the diversion of steel exports caused by high U.S. tariffs. Importers will also be required to disclose the origin of their products, and a complex quota system will regulate access to the EU market. The proposal, set to replace the current World Trade Organization-aligned safeguard policy expiring in 2026, has sparked concerns in the UK, where the steel industry warns of potential collapse. UK Steel Director-General Gareth Stace described the situation as the industry’s ‘biggest crisis ever,’ urging the British government to negotiate country-specific quotas with the EU. The EU’s steel sector, which employs 300,000 people across 20 member states, has faced significant challenges over the past two decades, losing a quarter of its workforce. The proposal reflects the EU’s broader strategy to decarbonize and reindustrialize its steel industry, a sector integral to its economic security and strategic autonomy. The European Parliament and Council must now ratify or amend the proposal, which could lead to further negotiations with the WTO.