EUROMETAL calls for practical reform and steel derivatives restrictions at EU Implementation Dialogue on Rules of Origin
EUROMETAL, together with major European steel producers and industry associations, participated in the European Commission’s Implementation Dialogue on EU Rules of Origin: A Business Perspective, hosted by DG TAXUD and chaired by Commissioner Maroš Šefčovič, responsible for Trade and Economic Security.
The dialogue brought together policymakers and industry stakeholders for a constructive exchange on how to modernise and simplify the EU’s rules of origin (RoO) — a key component of customs law that increasingly impacts trade defence, sustainability policies, and access to global markets.
A strong steel industry presence
EUROMETAL President, Alexander Julius, joined a broad coalition of stakeholders from across the steel value chain — including major producers, processors, and trade associations — to deliver a unified message: rules of origin must become more practical, consistent, and fit for purpose in a changing global trade environment.
The discussion focused on aligning RoO with business realities, eliminating national inconsistencies, and ensuring rules support the EU’s climate and industrial policy goals.
Key Messages from Commissioner Šefčovič
Commissioner Šefčovič acknowledged the critical role of rules of origin and committed to a comprehensive reform process.
His main takeaways included:
- Simplification and sector-specificity: RoO should be easier to apply and adapted to the specific characteristics of each sector. A sector-by-sector approach was welcomed by all participants.
- Harmonisation across the EU: Inconsistent implementation by Member States creates major challenges. Harmonising RoO application is essential to restoring fairness and reducing internal market barriers.
- Digitalisation as a cornerstone: The upcoming Customs Reform will introduce a European Data Hub, digital product passports, and AI-driven compliance tools — with particular attention to SME accessibility.
- Strategic role of RoO in trade defence: Šefčovič confirmed that rules of origin are increasingly linked to CBAM, safeguard measures, and anti-circumvention efforts — especially in critical sectors like steel and aluminium.
- Post-2026 steel strategy: A new framework for EU steel safeguard measures is under development, with updates expected in late summer 2025. The EU will also seek closer coordination with the US on tackling global overcapacities.
EUROMETAL’s contributions
During the dialogue, EUROMETAL highlighted the complexity faced by steel distributors and service centers in complying with origin requirements, particularly when products are transformed or sourced across multiple jurisdictions.
Key recommendations included:
- Align RoO with new climate and circular economy goals, including CBAM and the definition of “green” steel.
- Develop practical rules for recycled content, “melted and poured” criteria, and value-added processing.
- Ensure digitisation efforts are interoperable and accessible to SMEs, which represent the backbone of the steel distribution sector.
- Introduce specific origin-based restrictions on steel derivatives, to prevent circumvention of EU safeguard and trade defence measures. EUROMETAL stressed that derivatives must not become a loophole undermining the effectiveness of existing protections.
EUROMETAL also stressed the need for predictable, harmonised rules that can be easily implemented across all 27 Member States — avoiding costly delays and inconsistent customs decisions.
Next steps and continued engagement
The European Commission called on all participants to submit written, sector-specific input. Feedback will inform the design of future RoO reforms and help guide customs digitalisation and trade negotiations.
Šefčovič closed the session by reaffirming the Commission’s openness to continued dialogue: “We want to get this right — and that means listening to you. Give us practical, detailed input so we can build solutions that work on the ground.”
EUROMETAL will continue to coordinate closely with its members and the broader steel community to ensure that the voice of the distribution and service sector — including concerns on steel derivatives — is fully reflected in the EU’s evolving trade and customs framework.
EUROFER calls for emergency measures as US Tariffs crush EU steel exports
The delay and ongoing uncertainty about a deal on tariffs between the EU and the U.S. further worsens the crisis for the European steel industry.
U.S. steel tariffs at 50% are adding fuel to an already explosive situation, putting the sector at risk of losing all its exports to the U.S. and facing a surge of deflected trade flows redirected from the U.S. to the EU market.
The lack of bold and timely implementation of the Steel and Metals Action Plan is further accelerating the sector’s deterioration, says the European Steel Association.
“We cannot continue with U.S. steel tariffs at 50%. As we lose our major export market, the European market is being flooded by the steel the U.S. is no longer absorbing. We are particularly disappointed by the absence of a joint EU-U.S. approach preserving EU steel exports to the U.S. and tackling trade diversion towards the EU on top of massive global overcapacity — now 5 times larger than the EU’s total steel production. This glut is destroying entire value chains, undermining industrial resilience, defence capabilities and the green transition”, said Dr Henrik Adam, President of the European Steel Association (EUROFER).
“What is even more concerning is that while the U.S. — regardless of the administration — has consistently pursued a bold industrial strategy, the EU has fallen behind. The implementation of the Steel and Metals Action Plan has yet to deliver tangible results. Any potential benefits from the last EU steel safeguard review have been entirely wiped out due to its low level of ambition and the disastrous impact of the U.S. tariffs, which is only beginning to materialise”, added Dr Adam.
Benefitting from lower energy costs, green subsidies, Buy U.S. steel policy and strong trade protection with the reactivation of steel tariffs, the U.S. steel industry first regained price competitiveness versus imports, and then has invested in 8-9 million tonnes of new capacity. The increase to 50% blanket tariffs is now expected to further boost U.S. domestic capacity utilisation securing volumes for newly built production lines by reducing imports and ramping up domestic output. In stark contrast, the EU lost 10 million tonnes of capacity in 2024 alone — its highest annual closure rate ever. Before the 50% tariff hike, the EU was the third-largest exporter to the U.S. after Canada and Brazil, accounting for around 4 million tonnes of steel exports.
Meanwhile, EU policy responses fall short. The Affordable Energy Action Plan and the Clean Industry State Aid Framework have not delivered substantial energy price relief for energy-intensive industries. The root cause — the EU’s electricity market design, which continues to deliver uncompetitively high prices — remains unaddressed, despite being central to the Draghi report.
The most important initiatives of the Steel and Metals Action Plan are expected only after summer: in September, the new ‘highly effective trade measure’ to replace the current safeguard to protect EU steel capacities, and by December, a proposal to close major loopholes in the Carbon Boarder Adjustment Mechanism (CBAM) – including resource shuffling and also export leakage, which has already been delayed.
“The game changer for a business case in Europe is not there yet. If these key measures on trade and CBAM are addressed by the European Commission as half-heartedly as energy prices, we will inevitably continue to see more capacity closures, job losses, and stalled decarbonisation projects. If that happens, there will only be losers: EU steel producers wiped out by cheap, carbon-intensive imports, and an EU transition and climate ambition that falter without solid industrial foundations”, concluded Dr Adam.
Germany’s Salzgitter steel certified for military use
Steel produced by Salzgitter has been approved for use in the defence industry by Germany’s armed forces, the company said on 8 July.
The approval allows the company to strengthen its position in the growing market for military applications.
The steelmaker received approval from the German Military Technical Center 91 (WTD 91) in accordance with TL (Technical Delivery Conditions) 2350-0000. This officially approves steel grade SECURE 500 in 6-16 mm thicknesses for military use, including vehicles or protective systems.
Salzgitter is already in the approval process for additional steel grades and after obtaining approval, plans to offer a range of products under the SECURE brand name for military use.
Growth of the European defence sector has been widely discussed in the market this year, and certification of products by the militaries of different EU states was identified as one of the issues that could slow down the process. Market participants said that although it is relatively easy for a steelmaker to alter its steel with additional heat treatment to achieve greater hardness for the needs of the defence sector, the certification process was more time consuming.
“Our SECURE 500 steels are quenched and tempered and feature a fine martensitic microstructure. With the granting of TL approval, these steels are now also approved for use by the German Armed Forces – this is a great success after extensive testing,” Thorsten Gintaut, managing director sales of Salzgitter Ilsenburger Grobblech said.
Earlier this year, two Central European heavy plate producers resumed operations partially supported by demand from the defence sector, namely Liberty Steel Galati in Romania and Częstochowa Steelworks in Poland.
In June this year, the European Commission proposed new measures to facilitate EUR800 billion of investment in the defence sector over the next four years. The investment is part of the vision set out in the White Paper for European Defence-Readiness 2030, which outlined actions needed to boost Europe’s defence preparedness.
Maria Tanatar Associate Director, Steel and Green Steel
