Paris, France – Through a press release on October 7, the European Commission proposed protectionist trade policies to bolster EU steel production in an overly-competitive and saturated global market.
The plan, put in motion to replace the steel safeguard measure expiring in June 2026, seeks to reduce tariff-free import quotas by 47% while hiking import duties on non-EU partners to 50%.
The Commission points to the significant pressure from unsustainable levels of global overcapacity, which has led to the closing of third-country markets, high energy and manufacturing costs in the EU, and lower internal demand. Without name-calling, these third country markets refer almost explicitly to the U.S.
EU vs. U.S.
Research by Eurostat, the EU’s statistical office, published in March 2025 found that the EU exported most to the U.S. and imported most from China.
Evidently, the Commission’s measure comes as an effort to counterbalance European dependence on the American market post-trade war. However, it also serves as a nod to U.S. President Donald Trump in an effort to renegotiate his 50% tariff increase on all steel and aluminium articles.
While celebrating the proposal as a “major leap forward to defend the sector”, Director General of the European Steel Association Axel Eggert also hopes the provision will lay the ground for a renewed dialogue with the Trump administration.
The European way
Unlike the U.S.’s harsh tax imposition and elimination of any import quota, the Commission champions its proposal as “European” and in line with international trade law.
The measures are fully compliant with the World Trade Organization, and allow for specific country allocations for affected EU trading partners under Article 28 of the General Agreement on Tariffs and Trade (GATT).
Such is the case for Ukraine, for example, which remains exempt from the measure as it faces an exceptional and immediate security situation.
‘‘We decided to do it in our European way. It means we keep our markets open and we are offering quotas for our partners,” stated Trade Commissioner Maroš Šefčovič in a press conference in Strasbourg on Tuesday, October 7.
The odd one out
Not all partners are off the hook. The UK, although seemingly a strong partner as the greatest importer of European steel after the U.S., the former EU member receives no special treatment in the proposal.
“This is perhaps the biggest crisis the UK steel industry has ever faced,” Gareth Stace, Director General of the lobby group UK Steel, said.
The EU market accounts for 78% of all UK steel exports, totalling 1.9 million tonnes of steel in 2024. By comparison, the U.S. imports just 200,000 tons of British steel.
Stace continued: “[The] government must go all out to leverage our trading relationship with the European Union to secure UK country quotas or potentially face disaster.”
Also on Tuesday, Prime Minister Keir Starmer reassured “strong support” from the government to the British steel industry.
While trade commissioner Šefčovič expects to “fully engage” with the UK on the issues and indicates the UK quota might be negotiated in the future, the commission’s proposal raises questions about the reliability of the EU as a trading partner in an increasingly unreliable free market.
Featured image:
Image: A new steel trade measure proposed by the EU Commission
Source: European Steel via X
Author: European Commission Audiovisuals Service
