BRUSSELS, Belgium: The European Union is set to tighten steel import quotas starting in April, reducing inflows by 15 percent to prevent a surge of cheap steel flooding its market after the United States imposed new tariffs, a senior EU official said this week.

The move comes amid concerns from European steelmakers, who warn that higher U.S. tariffs will push global suppliers to redirect excess steel to Europe, undercutting local production already struggling with high energy costs and competition from Asia.

"During a period when nobody is respecting WTO (World Trade Organization) rules, and everyone refers to national security... the EU can't be the only continent that lets its industry fall apart," said European Commission Executive Vice-President Stephane Sejourne.

With President Donald Trump's administration imposing a 25 percent tariff on imported steel, Sejourne predicted that producers from Canada, India, and China would increasingly target Europe to offset losses in the U.S. market.

Thyssenkrupp, Europe's second-largest steelmaker, highlighted the risk, noting that the U.S. imported 23 million metric tons of steel last year—volumes that could now be diverted to Europe due to the tariffs.

Shares of ArcelorMittal, the region's top steel producer, climbed 0.9 percent following reports of the EU's planned import restrictions.

The European Commission is also set to introduce broader trade-related measures under a new European Steel and Metals Action Plan aimed at safeguarding domestic producers. The plan includes consulting aluminum manufacturers about potential fast-track investigations for trade protections.

Sejourne confirmed that from April 1, import quotas, known as safeguards, will be reduced for multiple steel grades by 15 percent. While imports within the quota remain tariff-free, steel exceeding the quota will be subject to a 25 percent tariff. Since 2019, quota volumes have increased by over 25 percent, which is in line with WTO rules.

In 2024, the EU imported approximately 60 million metric tons of steel, half of which fell within tariff-free quotas. Current safeguards, which expire in 2026, will be replaced by new, stricter trade mechanisms.

Sejourne stressed the strategic importance of protecting European steel production, drawing parallels to the bloc's past reliance on Russian gas. "We want to keep our steel in Europe and be able to recycle in Europe," he said. "There is no defense industry without steel, there is no automobile industry without steel, and we want to keep our industries."