The EC has launched consultations on replacing protective measures for steel

The EU is seeking to develop a highly effective and promising instrument

The European Commission (EC) has launched targeted consultations to determine future measures aimed at further protecting the EU steel sector. This is stated in a press release from the institution.

Global overcapacity seriously threatens the profitability and competitiveness of European industry, the EC noted. The EU is the only major metallurgical region where capacity reduction is observed. In addition, the introduction of US import tariffs of 25% on steel and aluminum in March and their increase to 50% in June this year not only negatively affects European producers by restricting access to the US market, but also increases pressure from trade diversion.

The EU steel industry also faces critical challenges that weaken its competitiveness in the global market and threaten its long-term viability. These include a lack of a level playing field, high energy and production costs, and ambitious and costly investments, particularly those needed for decarbonization. These challenges coincide with unfavorable market conditions – low demand for steel in the EU and pressure from cheap imports.

The EC has committed to proposing protective measures for steel by the third quarter of 2025 to replace the current ones, which expire on June 30, 2026. The European Commission is seeking input from stakeholders to develop a highly effective and forward-looking tool to address these issues. The deadline for submitting comments and proposals is August 18.

The consultation is publicly available on the DG TRADE website. In addition, the EC will also directly contact all stakeholders who have been actively involved in trade procedures in recent years and will distribute the package to the relevant authorities of the Member States.

As GMK Center reported earlier, the European Commission has launched a consultation on the cross-border carbon adjustment mechanism. The aim of the consultation is to gather stakeholders’ views on the development of policies for the potential extension of the mechanism’s scope, anti-circumvention measures, and rules for the electricity sector. The consultation is open until August 26 this year.