In the June 2026 edition of its eUpdate client magazine, Paul Brettnacher, CMO Central Accounts at ArcelorMittal Europe – Flat Products, has called for the European Union to rapidly extend both the Carbon Border Adjustment Mechanism (CBAM) and steel trade measures to steel derivatives and downstream products.
According to Brettnacher, the implementation of CBAM on 1 January 2026 and the introduction of the new EU steel Tariff Rate Quota (TRQ) regime from 1 July 2026 represent important first steps towards creating a more level playing field for European steel producers. However, he argues that these measures alone will not be sufficient to safeguard Europe’s industrial competitiveness.
The article highlights the growing volume of imported steel derivative products that currently fall outside the scope of both CBAM and the EU’s steel trade measures. As imports of finished and semi-finished products continue to increase, Brettnacher warns that the intended benefits of the new regulatory framework risk being undermined, with consequences extending well beyond primary steel production.
Particular attention is given to the electrical steels value chain. Components such as laminations, stator cores, rotor cores, electric motors and generators are identified as strategic products for Europe’s energy transition, electric mobility and industrial resilience. The article notes that nearly two-thirds of the non-grain oriented electrical steel (NGOES) required for new electric motors and generators in Europe is now supplied from outside the European Union.
Against a backdrop of expanding global steel overcapacity and increasing subsidised production in third countries, Brettnacher argues that Europe faces growing competitive pressure throughout its manufacturing value chain. He cites concerns that imports of downstream products, which are not currently covered by existing trade or carbon measures, could weaken investment, employment and strategic industrial capabilities within the EU.
To address these challenges, the article proposes three priority actions by 2027:
- Extend CBAM to cover the full NGOES downstream value chain, including first-transformation steel derivatives and downstream products such as electric motors and generators.
- Extend EU steel trade measures to the same categories of derivatives and downstream products, closing what is described as a significant regulatory gap.
- Prioritise “Made in EU” generators and electric motors in European public procurement and funding programmes.
Brettnacher stresses that discussions on the future extension of CBAM are already underway, while consultations on the first extension of the new steel trade measures begin on 1 July 2026, coinciding with the entry into force of the revised TRQ regime. He describes this period as a critical opportunity to strengthen Europe’s industrial policy and ensure that downstream manufacturing receives the same level of protection as primary steel production.
The publication contributes to the ongoing European debate on maintaining a competitive and resilient steel and manufacturing sector while supporting the objectives of the Green Deal, industrial decarbonisation and strategic autonomy. It also reflects growing calls from across the European steel value chain for future policy measures to better address imports of steel derivatives and downstream products.
