Trade Cases
European Commission makes public steel action plan
Written by Ethan Bernard
March 19, 2025
The European Commission unveiled “A European Steel and Metals Action Plan” on Wednesday aimed at safeguarding the European Union’s steel and base metals production.
The plan has six pillars, which include ensuring action to clean and affordable energy, prioritizing its Carbon Border Adjustment Mechanism (CBAM), dealing with Chinese overcapacity, and addressing the US 25% Section 232 tariffs on steel and aluminum, among others.
The Commission said it has proposed adjustments on the current “steel safeguard” that are set to go into effect April 1.
Reduced imports
Of particular note, a Reuters article on Wednesday reported the EU has proposed slashing steel imports by 15% from April 1, citing a senior EU official.
The current steel safeguards for the EU expire in July 2026. The Commission said that no later than Q3’25, it will propose a trade measure replacing the current steel safeguards as July 1, 2026.
The EC noted in its plan that, “without robust action and investment, the risk of plant closures and industry decline remains real, with serious consequences for key economic regions across Europe.”
CBAM
CBAM, a fee tied to greenhouse-gas emissions on imports, goes into effect at the beginning of next year. The Commission is set to tackle the problems of “carbon leakage” and circumvention as potential issues to the program.
“To address both issues and ensure the integrity of CBAM, the Commission will present an anti-circumvention strategy,” the EC said in the plan.
Carbon leakage refers to the disadvantage EU metals producers face when their products enter another market with less stringent climate rules, and they have to compete with products not subject to those rules. .
This will be addressed by the EC by Q2’25 through an analysis of options for dealing with the issue.
Additionally, the EC will undertake a “comprehensive review of CBAM” by Q4’25. This will be accompanied by a first legislative proposal:
- Extending the scope of CBAM to certain steel and aluminum-intensive downstream products and
- Including additional anti-circumvention measures.
Ethan Bernard
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