The European Commission is proposing to reduce an automatic increase on its steel import quota-and-tariff safeguard measure as domestic producers face headwinds from a softening market and surging import levels.

In a statement, the commission said that although its safeguard measure has worked well overall, adjustments are warranted to reflect the current market.

The European Union imposed the reciprocal measure following the Trump administration’s imposition of a 25% tariff on imported steel. The measure first sets a cap on imports of 26 steel products; imports that exceed the cap are then assessed a 25% duty.

The plan includes automatic increases to cap and is to rise by 5%. But the commission said Wednesday that a 3% increase would be more proper. It said the reduction would keep about 1.5 million metric tons out of the market.

“This lowered liberalization pace is in line with the most-recently published general economy and industrial outlooks, which foresee a growth reduction for the union and the world economy,” it said.

The European Steel Association last month called on the commission to halt the automatic quota increase.

“The stepped increase is out of line with the size and direction of the market. Coming from 2018, when imports boomed by a record 12%, bringing their share of the market to an all-time high, it is extraordinary that the commission would not act to at least postpone this pre-programmed change until a review of the measure has been completed,” said Axel Eggert, the association’s director general.（From Steel News）