Released October 13, 2025 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Commission (EC) has announced a series of protection measures for its troubled steel industry, including reduced import quotas and a 50% tax.
Citing global overcapacity and under increased pressure from European steelworkers, industry and several Member States, the Commission has proposed limiting tariff-free import volumes to 18.3 million tonnes a year - a reduction of 47% compared to 2024 steel quotas - and doubling the level of out-of-quota tax to 50% compared to the 25% under the current safeguard. It will also strengthen the traceability of steel markets by introducing a 'Melt and Pour' requirement, which would oblige importers to provide evidence like a mill certificate to confirm where the steel was originally melted and poured.
Europe's steel industry employs around 300,000 people directly and supports some 2.5 million jobs indirectly, with steel production sites located in more than 20 European Union (EU) Member States. According to the Commission, Europe is the only major region that has lost some 65 million tonnes of capacity since 2007. Last year, the capacity-utilisation rate reached 67%, well below the so-called healthy rate of 80%, while up to 100,000 jobs have been lost in the sector since 2007.
"A strong, decarbonised steel sector is vital for the European Union's competitiveness, economic security and strategic autonomy," said Commission President Ursula von der Leyen. "Global overcapacity is damaging our industry. We need to act now - I urge the Council and Parliament to move ahead quickly. The Commission will continue working with industry to protect and create good jobs, and with Member States and global partners -- including at WTO level - to find long-term solutions to shared challenges." In the meantime, the EU is hoping to hammer out an acceptable steel deal with the U.S. by the end of the next month in an effort to end the crippling tariffs currently hitting European steel and aluminum suppliers. For additional information, see September 30, 2025, article - Europe Eyes Steel Deal with U.S. by Mid-October.
Stéphane Séjourné, EC executive vice president for prosperity and industrial strategy, told the media: "We have global over capacity, unfair competition, state aid, and undercutting in prices and we are reacting to that. Eighteen thousand jobs were lost in the steel sector in 2024. That's too many, and we had to put a stop to that. An industrial future for Europe is impossible without a vibrant and resilient steel industry. By protecting our market from unfair global competition, we are building a path for a sovereign decarbonized European steel. This proposal is the first step for our industry to regain competitiveness. We now have to focus our efforts on the other parts of the action plan: CBAM reform, clean industrial deal and demand measures. That is why I call on the co-legislators for an urgent and swift adoption of the proposal so our industry can invest, grow, and innovate."
The proposed moves were welcomed by the leading European steel association, EUROFER. "We strongly welcome and fully support the Commission's proposal on the new steel trade measure. This is a major leap forward to defend the sector and constitutes clear evidence that the Strategic Dialogue on Steel, initiated by President von der Leyen, is starting to bear fruit. We are thankful for the groundbreaking work carried out by EVP Séjourné and Commissioner Šefčovič to implement the most urgent point of the Steel and Metals Action Plan. This trade measure is vital to preserve not just the sector and its workforce, but the very backbone of EU industrial independence and green transition", said Axel Eggert, director general of EUROFER.
However, steel groups in neighboring U.K., which left the EU in 2020, have called the proposed jump in import tariffs "the biggest crisis" its industry has ever faced. Today, roughly 80% of U.K. steel exports go to the EU. "This is perhaps the biggest crisis the U.K. steel industry has ever faced," warned Gareth Stace, director general of industry body U.K. Steel. "The government must go all out to leverage our trading relationship with the European Union to secure U.K. country quotas or potentially face disaster."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Citing global overcapacity and under increased pressure from European steelworkers, industry and several Member States, the Commission has proposed limiting tariff-free import volumes to 18.3 million tonnes a year - a reduction of 47% compared to 2024 steel quotas - and doubling the level of out-of-quota tax to 50% compared to the 25% under the current safeguard. It will also strengthen the traceability of steel markets by introducing a 'Melt and Pour' requirement, which would oblige importers to provide evidence like a mill certificate to confirm where the steel was originally melted and poured.
Europe's steel industry employs around 300,000 people directly and supports some 2.5 million jobs indirectly, with steel production sites located in more than 20 European Union (EU) Member States. According to the Commission, Europe is the only major region that has lost some 65 million tonnes of capacity since 2007. Last year, the capacity-utilisation rate reached 67%, well below the so-called healthy rate of 80%, while up to 100,000 jobs have been lost in the sector since 2007.
"A strong, decarbonised steel sector is vital for the European Union's competitiveness, economic security and strategic autonomy," said Commission President Ursula von der Leyen. "Global overcapacity is damaging our industry. We need to act now - I urge the Council and Parliament to move ahead quickly. The Commission will continue working with industry to protect and create good jobs, and with Member States and global partners -- including at WTO level - to find long-term solutions to shared challenges." In the meantime, the EU is hoping to hammer out an acceptable steel deal with the U.S. by the end of the next month in an effort to end the crippling tariffs currently hitting European steel and aluminum suppliers. For additional information, see September 30, 2025, article - Europe Eyes Steel Deal with U.S. by Mid-October.
Stéphane Séjourné, EC executive vice president for prosperity and industrial strategy, told the media: "We have global over capacity, unfair competition, state aid, and undercutting in prices and we are reacting to that. Eighteen thousand jobs were lost in the steel sector in 2024. That's too many, and we had to put a stop to that. An industrial future for Europe is impossible without a vibrant and resilient steel industry. By protecting our market from unfair global competition, we are building a path for a sovereign decarbonized European steel. This proposal is the first step for our industry to regain competitiveness. We now have to focus our efforts on the other parts of the action plan: CBAM reform, clean industrial deal and demand measures. That is why I call on the co-legislators for an urgent and swift adoption of the proposal so our industry can invest, grow, and innovate."
The proposed moves were welcomed by the leading European steel association, EUROFER. "We strongly welcome and fully support the Commission's proposal on the new steel trade measure. This is a major leap forward to defend the sector and constitutes clear evidence that the Strategic Dialogue on Steel, initiated by President von der Leyen, is starting to bear fruit. We are thankful for the groundbreaking work carried out by EVP Séjourné and Commissioner Šefčovič to implement the most urgent point of the Steel and Metals Action Plan. This trade measure is vital to preserve not just the sector and its workforce, but the very backbone of EU industrial independence and green transition", said Axel Eggert, director general of EUROFER.
However, steel groups in neighboring U.K., which left the EU in 2020, have called the proposed jump in import tariffs "the biggest crisis" its industry has ever faced. Today, roughly 80% of U.K. steel exports go to the EU. "This is perhaps the biggest crisis the U.K. steel industry has ever faced," warned Gareth Stace, director general of industry body U.K. Steel. "The government must go all out to leverage our trading relationship with the European Union to secure U.K. country quotas or potentially face disaster."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
