The Commission has proposed measures aimed at safeguarding the EU steel sector from the adverse effects of global overcapacity, thereby securing the industry’s long-term viability. This initiative aligns with the commitments outlined in the EU Steel and Metal Action Plan, underscoring the importance of maintaining open trade while fostering collaboration with international partners.
Steel is crucial for the EU economy and its green transition, particularly in the defence sector. The EU, the world’s third-largest steel producer, employs about 300,000 people. However, the industry faces severe challenges from global overcapacity and rising imports, which threaten its competitiveness and investment capacity.
Since 2007, the EU has lost 65 million tons of production capacity, with capacity utilisation at only 67% in 2024, resulting in significant job losses and record sector losses.
Key elements of the proposal include limiting tariff-free imports to 18.3 million tons annually, which constitutes a 47% reduction compared to the 2024 steel quotas, doubling the out-of-quota duty to 50%, an increase from the previous rate of 25% and implementing a Melt and Pour requirement to improve market traceability and prevent circumvention.
This proposal aims to replace the existing steel safeguard measure, which is set to expire in June 2026. It responds to calls from EU workers, industry representatives, and various stakeholders for greater and more enduring protection of the steel sector, aimed at preserving jobs and supporting the industry’s efforts to decarbonise.
“A strong, decarbonised steel sector is vital for the European Union’s competitiveness, economic security and strategic autonomy. Global overcapacity is damaging our industry. We need to act now – I urge the Council and Parliament to move ahead quickly. The Commission will continue working with industry to protect and create good jobs, and with Member States and global partners – including at WTO level – to find long-term solutions to shared challenges,” highlighted European Commission President Ursula von der Leyen.
The Commission remains committed to fostering global cooperation to address the issue of steel overcapacity and invites like-minded countries to collaborate on this critical matter, ensuring compliance with World Trade Organisation (WTO) regulations.
Upon receiving a mandate from the Council, the Commission will engage with affected trading partners regarding adjustments to tariffs and quota allocations. Exports from Norway, Iceland, and Liechtenstein will be exempt from these tariffs due to their close integration with the EU internal market. Furthermore, considerations will be given to candidates facing exceptional security situations, such as Ukraine, when determining quota allocations.
This proposal will proceed through the ordinary legislative process, requiring consensus from both the European Parliament and the Council before implementation following the expiration of the current safeguard in June 2026. The objective is to ensure seamless protection for the EU steel sector throughout this transition.
