La Europe's countermove at 25% duties on steel and aluminum imposed by Donald Trump will come into force from 1 AprilThe European Commission, on Wednesday 19 March, was called upon to approve the Steel Action Plan, announcing an immediate reform of the safeguard measures on the sector,
announcing a immediate reform with safeguard measures on the sector. A first measure could consist in the reduction of import quotas for different types of steel. The aim is to prevent the European Union from becoming a dumping ground for cheap steel, diverted from the US market. Inflows would be reduced by about 15%.
As part of its plan for the sector, Brussels wants new trade protections long-term intended for replace the current safeguards on steel for counter dumping of imports from third countries burdened by duties. The Commission spoke on this issue yesterday Stéphane Séjourne, Executive Vice President of the European Commission that Reuters he said that the regulation of inflows will come into force starting from April, in a move aimed at preventing that Low-cost steel floods European market after the imposition of new tariffs by Washington.
Appeals from leading European steel companies. The stock market crash
I European Steel Producers, already struggling with high energy prices and competition from Asia and elsewhere, warn that the European Union risks turn into a landfill for low cost steel, hijacked from the US market, which could damage European plants.
“At a time when nobody respects the rules of the WTO (World Trade Organization) and everyone refers to national security… the EU cannot be the only continent to let its industry fall apart,” Sejourne told Reuters.
Given that the US market is becoming less commercially interesting due to the 25% tariffs imposed by the administration of President Donald Trump, Sejourne fears that the producers of Canada, India and China try to sell greater volumes in Europe.
The CEO of Europe's second largest steel producer, Thyssenkrupp, said yesterday that the United States imported about 23 million tons of steel last year, volumes that are now seeking other destinations, including Europe, because of import duties. The stock is down 8,66% today. Shares of ArcelorMittal, the main European steel producer, today loses 3,82%. At Piazza Affari the Danieli Group loses 4,20%,
The Commission will also consult the aluminum producers, facing similar headaches as steelmakers over whether to launch an expedited investigation for safeguard measures.
Inflows would be reduced by about 15%
Sejourne, who is responsible for defining the EU's industrial strategy, said that a first measure consists in reducing import quotas, known as safeguard measures, for several types of steel starting from April 1st, which would reduce inflows by about 15%. Volumes imported within quotas reflect established trade flows and are not subject to tariffs. Any steel imports outside the quota will be hit with a 25% tariff. Since July 2019, quota volumes have increased by more than 25% as the bloc plays by WTO rules.
In 2024 the EU has imported about 60 million tons of steel, of which 30 million tonnes were in the duty-free quota. In the third quarter, the Commission will also define new measures to replace the enhanced safeguard measures, which under WTO rules cannot be extended beyond 30 June 2026. Sejourne said that, after the numerous appeals from industries, the new mechanism will be much more severe.
“Let's prevent tomorrow's steel from becoming yesterday's gas”
“We must anticipate future tensions and wars: we have seen what happened in the past with Russian gas… Let's avoid that the steel of tomorrow becomes the gas of yesterday“, Sejourne said, adding that the EU does not want to depend on steel imports, material which will also be fundamental in the reconstruction in post-war Ukraine.
To further strengthen the existing trade defence measures, It is expected that public procurement rules will be reviewed in 2026 for promote European steel. The Commission will also introduce a “melted and cast” rule, according to the draft Action Plan for Steel and Metals. The rule would prevent importers from changing the origin of the metal “by carrying out minimal processing”.
Among the non-trade measures, a pilot program with the European Investment Bank for long-term energy contracts will give priority to steel and aluminum producers. Details will be announced in Q2025 XNUMX.
“We want to keep our steel in Europe and be able to recycle it in Europe,” Sejourne said. “It’s a strategic issue. There is no defense industry without steel, there is no automobile without steel, and we want to keep our industries.”
Von der Leyen: “We must help our producers”
A iron and steel industry strong in Europe, the Commission note states, is essential to ensure the EU security in the current geopolitical context, as well as to ground the ReArm Europe 2030 Plan. The executive led by Ursula von der Leyen observes that "the sector is at a "critical turning point" between high energy costs, unfair global competition and the need for investment for reduce greenhouse gas emissions.
“The steel industry has always been a key driver of European prosperity, which is why next-generation clean steel should continue to be produced in Europe,” said von der Leyen. “This means we need to help our producers, who are facing strong headwinds on the global market. To ensure they remain competitive, we need to reduce energy costs and help them bring innovative low-carbon technologies to the market. With the new Action Plan, we offer concrete solutions.” The Union promotes the use of power purchase agreements (PPAs) and incentivises Member States to use fiscal flexibility and reduced network tariffs to smooth out electricity price volatility. It also promotes faster access to the grid for energy-intensive industries and supports the increased use of renewable and low-carbon hydrogen in the sector.
On the front of funding, in the two-year period 2026-2027, the community executive will allocate 150 million of euros through the Coal and Steel Research Fund, to which will be added 600 million from the Horizon Europe program part of the Clean Industrial Deal. Looking further ahead, the goal is to raise 100 billion euros from the Bank for Industrial Decarbonization, leveraging the Innovation Fund and other existing resources. A pilot auction of 2025 billion aimed at decarbonizing and electrifying key industrial processes will start in 1.
