The European Commission is reportedly planning to impose import tariffs of 25% to 50% on iron and steel products from China in the coming weeks.
It is said to be an effort to protect European domestic producers from a situation where cheap imports are flooding the market.
The move is seen as a reaction to China's overcapacity in production that has lowered the profit margins of the European iron and steel industry.
China is expected to see an increase in iron and steel exports to Europe this year, as its domestic market is predicted to be weak due to the slowdown in the real estate sector, prompting China to seek alternative markets for its surplus output.
For European iron and steel producers, the imposition of these tariffs is seen as a morale booster by helping to reduce competitive pressure from abroad, but there are concerns that the high tariffs could trigger trade conflicts and retaliation from China.
Several EU member states that are heavily dependent on trade with China have also questioned the extent to which these tariffs will support the development of local industries without affecting supply chains and raw material costs.
Impacts on global markets could include rising iron and steel prices in Europe, disruptions to supply chains, and the possibility of an escalating tariff war that could involve allies and put pressure on international trade policy.
