The EU is using GATT Article XXVIII to increase its bound tariffs on steel from 0% to 50%.
82% confidence
EconomyEuropean Union
Omissions
The claim omits that this is a tariff-rate quota (TRQ) system: the 50% tariff applies only to imports exceeding the quota volume (18.3 million tons per year). In-quota imports continue to benefit from the existing bound tariff rate, typically 0%.
The claim presents the tariff change as a flat bound-tariff increase from 0% to 50%, when in reality it is a two-tier system with a concessional in-quota rate and a 50% out-of-quota rate.
By May 2026 the measure had been politically agreed but had not yet entered into force; its effective date was scheduled for June/July 2026.
Sources
PrimaryEUR-Lex (European Union)Recommendation for a COUNCIL DECISION authorising the opening of negotiations with a view to modifying the Union's concessions made in the World Trade Organization (GATT Article XXVIII) on steel products. The document references modifying bound tariff concessions through negotiations under Article XXVIII:2 of GATT 1994.
PrimaryEuropean CommissionThe Commission proposed a 50% tariff on steel imports exceeding a certain quota, limiting tariff-free import volumes to 18.3 million tons. The measure will replace the EU's safeguard on steel when it expires in June 2026.
SecondaryBruegelOn 7 October, the European Commission proposed a 50% tariff on steel imports into the European Union that exceed a certain quota. The article discusses the TRQ structure and the Article XXVIII negotiations required.
SecondaryIEU MonitoringThe new measure sets tariff-free quotas at 18.3 million tons per year, with an out-of-quota duty set at 50% for 30 categories of steel products. The EU Commission welcomed political agreement on the measure.