News Global Market protective measures 1535 25 March 2026
New quotas and higher tariffs could significantly limit supply
Upcoming EU safeguard measures on steel imports and the Carbon Border Adjustment Mechanism (CBAM) could lead to rising prices for steel products in Europe. This was stated by Eurometal President Alexander Julius at the Eurometal Steel Day & YISAD Flat Steel Conference, according to SteelOrbis.
According to him, the bloc’s new protective measures, which are set to take effect on July 1 of this year and replace the current ones, will significantly limit supply. The planned halving of import quotas is expected to create a one-sided shortage in the market.
Julius noted that a 50% tariff on volumes exceeding the quotas is unacceptable to market participants. Once the quotas are exhausted, importers will have to pay the full tariff, which cannot be absorbed or passed on to consumers. In his view, this is a critical issue for future trade relations, especially given the quarterly quota system, under which importers may face the need to pay duties as early as the beginning of the period.
Furthermore, the CBAM is already contributing to rising steel prices in Europe. The mechanism increases costs not only for European steel producers but also for importers and end consumers, as the costs of carbon emissions are passed on throughout the entire value chain. At the same time, as the president of Eurometal noted, uncertainties remain regarding calculation methodologies, which creates additional challenges.
Alexander Julius also pointed to the growing influx of steel products into the EU, which are often not subject to tariffs, carbon taxes, or protective measures. This situation undermines the competitiveness of European manufacturing, as companies are increasingly relocating production outside the bloc and reimporting finished components. According to industry data, the automotive sector accounts for about 40% of such imports.
In addition, protectionist measures are intensifying worldwide (in the U.S., Canada, etc.), which could redirect global trade flows toward the EU market and increase competitive pressure in Europe.
As a reminder, at the beginning of the year, the European steel import sector faced difficulties due to the introduction of CBAM—cost surprises caused by last-minute rules, said Alexander Julius.
