The European Union has reached a preliminary agreement to reduce steel imports by nearly half and impose a 50% tariff on volumes exceeding quota limits, in an effort to protect its domestic steel industry from global oversupply.

Under the deal, duty-free steel imports will be capped at around 18.3 million tons per year, marking a reduction of about 47% compared to 2024 levels. The measure aims to increase capacity utilization among EU steelmakers from roughly 65% to 80%.

The EU said its steel sector has been under significant pressure from rising imports and global competition, with the industry having lost around 100,000 jobs since 2008.