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European Commission Proposes Plan to Protect EU Steel Sector From Global Overcapacity
10/08/2025 - The European Commission has presented a proposal aimed at protecting the EU steel sector from unfair impacts of global overcapacity and to ensure the long-term viability of the industry.
The European Commission’s proposal includes limiting tariff-free import volumes to 18.3 million metric tons per year; doubling the level of over-quota import duties to 50%; and introducing a melt and pour requirement to strengthen the traceability of steel markets.
“Global overcapacity is damaging our industry. We need to act now — I urge the Council and Parliament to move ahead quickly,” said Ursula von der Leyen, president of the European Commission.
The proposal would replace the steel safeguard measure set to expire in June 2026. It comes in response to a call for strong and permanent protection for the EU steel industry, safeguarding EU jobs and supporting the sector’s decarbonization efforts. The European Commission said it made the proposal to ensure uninterrupted protection of the EU steel sector.
“A strong, decarbonized steel sector is vital for the European Union's competitiveness, economic security and strategic autonomy,” van der Leyen said.
The European Commission said steel overcapacity is a global problem which requires strong, genuine and joint action by all partners. They went on to invite like-minded countries to work together to combat the global overcapacity problem while securing supply chains and increasing market access.
The proposed measure is World Trade Organization compliant, the European Commission said, and the Commission reserves the right to offer country-specific allocations. This includes exports from Norway, Iceland and Liechtenstein not being subject to tariff quotas or duties and countries which may face security situations such as Ukraine.
The proposal will now be subject to the usual legislative procedure. The European Parliament and the Council will need to agree on the final regulation. The opening of negotiations will need a qualified majority in the Council to be adopted.
“Global overcapacity is damaging our industry. We need to act now — I urge the Council and Parliament to move ahead quickly,” said Ursula von der Leyen, president of the European Commission.
The proposal would replace the steel safeguard measure set to expire in June 2026. It comes in response to a call for strong and permanent protection for the EU steel industry, safeguarding EU jobs and supporting the sector’s decarbonization efforts. The European Commission said it made the proposal to ensure uninterrupted protection of the EU steel sector.
“A strong, decarbonized steel sector is vital for the European Union's competitiveness, economic security and strategic autonomy,” van der Leyen said.
The European Commission said steel overcapacity is a global problem which requires strong, genuine and joint action by all partners. They went on to invite like-minded countries to work together to combat the global overcapacity problem while securing supply chains and increasing market access.
The proposed measure is World Trade Organization compliant, the European Commission said, and the Commission reserves the right to offer country-specific allocations. This includes exports from Norway, Iceland and Liechtenstein not being subject to tariff quotas or duties and countries which may face security situations such as Ukraine.
The proposal will now be subject to the usual legislative procedure. The European Parliament and the Council will need to agree on the final regulation. The opening of negotiations will need a qualified majority in the Council to be adopted.
