Under the proposal, import quotas will be reduced to 18.3 million tons a year, Brussels said, which is the total volume of steel the EU imported in 2013.

That year was chosen because the EU considers the market became unbalanced from that point on because of excess production -- mainly due to China, which massively subsidises local steelmakers.

"The global overcapacity crisis is reaching critical levels," EU trade commissioner Maros Sefcovic said during a news conference at the European Parliament in Strasbourg, adding steel capacity would reach five times annual EU demand by 2027.

The EU strategy mirrors the one embraced by Donald Trump, who imposed 50-percent tariffs to keep out cheap metals from China, producer of more than half the world's steel. Canada has taken similar steps.

Subject to approval by the EU's member states and parliament, the proposal would permanently replace the current safeguard scheme, which imposes 25-percent duties beyond set import quotas, but ends next year.

The steel sector employs around 300,000 people in Europe, and nearly 100,000 jobs have been lost in the past 15 years, the industry says.

The current crisis puts direct steel jobs at risk as well as 2.3 million indirect jobs, according to industry group Eurofer.