EU to increase tariffs on steel imports

The European Union is planning to boost tariffs on steel imports in an effort to help local producers cope with the impact of Asian overcapacity as well as new trade barriers imposed by the US.

The European Commission, the EU's executive arm, will propose early next week a long-term mechanism that will also reduce the bloc's existing quotas for foreign steel by almost a half, the EU's industry chief, Stephane Sejourne, told a closed door event on Wednesday, according to a source.

Steel imports beyond those quotas will be subject to the new tariff rate, which will mirror the policy of other jurisdictions such as the US, which imposes a 50% duty on imported steel.

Shares of European steelmakers increased on the news. ArcelorMittal SA rose as much as 4.4%, Voestalpine AG as much as 4.7% to its highest in more than two years.