EU trade measure saves steel industry from “cliff edge” as record imports surge

The new system will replace the current temporary safeguards in place since 2019, and is set to enter into force on 1 July 2026, avoiding what industry warns would have been a “cliff-edge moment” for European steel.

Axel Eggert, Director General of the European Steel Association (EUROFER), said: “European steel has been standing at the edge of a cliff and this trade measure helps pulls us back from the brink. By curbing unsustainable import pressure, it supports viable domestic steel capacity and enables the industry to continue its decarbonisation. It will bring back 15 million tonnes of EU steel-making capacity utilisation, while helping preserve around 30,000 direct jobs and 200,000 indirect jobs in Europe’’.

The urgency is underscored by the latest data. Despite weak demand, EU steel imports reached their highest level on record at the end of 2025, surging to around 9.9 million tonnes in the final quarter alone, up from 7.4 million tonnes a year earlier. At the same time, import penetration has climbed sharply, with flat steel products now accounting for around one-third of the EU market. As a consequence, European steel capacity has been idled or closed, leading to job losses putting the industry’s viability at risk.

These pressures are being driven by massive global steel overcapacity, now estimated at around 650 million tonnes, combined with state-backed overproduction and rising protectionism in major markets, including the introduction of 50% tariffs by the United States.

The new trade measure agreed by the European Council, Parliament and Commission, introduces a strengthened tariff-rate quota (TRQ) system, designed to restrict imports while keeping the EU market open.

Key elements include:

• Tariff-free quotas for the first 18.3 million tonnes of steel per year, with a 50% tariff (up from 25%) on all imports above this quota, avoiding blanket import restrictions
• Non-discriminatory application across exporting countries without exemption
• A review mechanism to adjust quotas based on market developments
• Safeguards against sudden import surges, including limits on quota accumulation

EUROFER stressed that now the same logic must extend to downstream steel-using sectors to secure steel demand and protect the entire European steel value chain.  

The association also warned that the deal marks only the beginning of Europe’s response to a deepening crisis. “Europe’s steel sector is far from out of the woods.’’, Mr Eggert added. “If we are to secure its future, this must now be followed by urgent action to make energy affordable, create a carbon adjustment mechanism that delivers in practice, and take a coordinated action with our partners to tackle global overcapacity”