European steel producers are campaigning for an early, and intensified replacement of the European safeguard system, Axel Eggert, Director General of industry group Eurofer confirmed at a conference held by steel distribution association EUROMETAL.
Eurofer is pressuring the European Commission to intensify its steel trade protections, endeavouring to maintain a strong presence in Brussels as European authorities consult on avenues for replacement measures to the steel safeguard system.
Speaking at EUROMETAL’s 75th Anniversary conference in Luxembourg, Eggert outlined Eurofer’s desired safeguard policy: intensified tariff-rate quota (TRQ) protections for European producers, with unanimous jurisdiction for the measures across exporting origins. The replacement measures should therefore apply to all steel categories – including an extension to downstream or derivative products.
Eggert stated that despite the most recent review of the safeguards, exporters from Asia were able to absorb the current out-of-quota duty rate of 25% and remain competitive against European domestic productions. This is compounded by the US’s latest tariff offensive, doubling their steel duties to 50%, which threatens to simultaneously deflect imports to Europe from the US market and restrict Europe’s own reciprocal export potential.
While the EU continues to negotiate with the US to reduce said tariffs to zero by the 9 July deadline, Eggert commented that the pair remain “very far away from a deal,” and that he expects that a tariff rate of 25% will be maintained on Europe’s exports given the US’ latest proposal.
To mitigate these pressures, Eurofer is requesting a doubling of the tariff rate to 50% – aiming to reduce overall import penetration into the European market by the same 50%. Eggert confided that while policymakers are increasingly receptive to the idea of intensified restrictions, European civil services are the barrier, overwhelming senior legislators with highly technical arguments that delay progress – a sentiment echoed by Eurofer President Dr Henrik Adam in his own presentation.
The EU’s safeguard measures – originally imposed to address import deflections from US President Trump’s initial section 232 steel tariffs – are due to expire in July 2026, with termination mandated after eight years under World Trade Organization (WTO) rules. Evidently, the safeguards have not achieved an improved trade balance as they approach the deadline, with import market share approaching 30%, and European producers consistently pressured toward – or under – red lines.
Replacing the measures in a manner consistent with WTO principles could require some legal creativity. Eggert hinted that mechanisms under the General Agreement on Tariffs and Trade (GATT) could be stretched to facilitate the new protections. This could include liberal interpretations of the exceptions mechanisms allowing WTO members to protect their “essential security interests” – both the United Kingdom and United States have been framing their latest steel protection initiatives under the umbrella of national security. The EU’s strict – and increasingly isolated – adherence to the WTO framework was criticised by multiple speakers at the EUROMETAL event.
At present, domestic prices for hot-rolled coil (HRC) in particular are heavily pressured by imports, with prices as low as EUR450-470/t CFR reported from Indonesia – around EUR100/t below the latest domestic ex-works offers and trades.
When questioned on the possibility for emergency reviews to the safeguard TRQs before their expiry to address this aggression from new exporters, Eggert stated that no further reviews were scheduled, and that Eurofer was instead pushing for replacement measures to take effect more urgently, from 1 January 2026.
Julian Verden, Managing Director of trading house STEMCOR, suggested that while he generally supported the rational application of trade protection measures, Eurofer’s safeguard policies – past and present – were designed to overly frustrate importers with disguised logistical barriers, such as the timing mechanism for customs clearances. Eggert replied that the safeguard mechanisms were specifically structured to protect domestic capacities, linking protections with the need to support the industrial transition, and address the crisis facing the European steel sector:
“If you want to have decarbonisation, then of course, the safeguard has to be seen as a tool for that purpose.”
According to Eggert, the European Commission’s proposal for the replacement measures will be presented in September.
