European steelmakers advocate for rapid replacement of steel safeguard measures

The EU steel industry is under pressure from Asian imports and US tariffs

European steelmakers are calling for a faster replacement and strengthening of the European system of protective measures. This was confirmed by Axel Eggert, Director General of the European Steel Association (EUROFER), according to OPIS.

Speaking at the Eurometal anniversary conference, Eggert outlined the desired policy. It involves strengthening tariff quotas (TRQs) with unanimous jurisdiction over these measures for all exporting countries. The replacement of protective measures should apply to all categories of steel, including processed products or derivatives.

The CEO of EUROFER noted that despite the latest review of EU protective measures, Asian exporters have been able to absorb the current 25% duty rate applied to exports above the quota and remain competitive with European producers. At the same time, the doubling of steel tariffs by the US threatens both a diversion of imports to Europe from the American market and a limitation of the EU’s export potential.

The current EU safeguard measures, introduced in 2018 to address the diversion of imports due to the initial US tariffs on steel under Section 232, are set to expire in July 2026. Under World Trade Organization (WTO) rules, they must be terminated eight years after their initial introduction.

Replacing the measures in a manner consistent with WTO principles may require some legal creativity. Eggert hinted that the mechanisms of the General Agreement on Tariffs and Trade (GATS) could be expanded to facilitate new practices. This could include a liberal interpretation of exceptions that allow members of the organization to protect their security interests. Both the United Kingdom and the United States are shaping their steel market protection initiatives on this basis.

The themes of trade protection and greater self-sufficiency dominated the Eurometal conference, Argus notes. European steelmakers are suffering from high levels of import penetration and declining demand.

In particular, Axel Eggert noted that European demand has fallen by 30 million tons in recent years, giving imports an excessive share. Under “normal” market conditions, imports would decline along with demand, rather than increase, added the CEO of EUROFER. He suggested that the level of domestic capacity utilization is close to 65%.

Conference delegates noted, in particular, that bureaucracy in the EU and the bloc’s intention to comply with WTO requirements are hindering the rapid implementation of protective policies. However, participants also expressed support for imported products.

It should be recalled that in June last year, the EU officially extended protective measures on steel imports for another two years, until June 2026. Restrictions were tightened in April 2025. In particular, new supply limits were introduced for residual quotas (quotas for “other countries”) for 16 product categories – 13-30% per country, depending on the product being imported.

Source:GMK Center