The Socialists and Democrats in the European Parliament today welcome the European Commission’s announcement of a new trade defence instrument designed to better protect European steel production. The new regulation, set to replace the current safeguards expiring in June 2026, introduces country- and product-specific tariff quotas to shield the sector from unfair competition and import surges.

European steel producers face enormous pressure from unfair trade practices, inadequate protection mechanisms, and soaring energy costs. Cheap imports from third countries flood the market, jeopardising thousands of jobs and the future of the industry in Europe.

Under the new system, once the free quota is exceeded, additional imports will be subject to significantly higher tariffs, addressing longstanding demands from the S&D Group for stronger trade protection measures. The tariffs out of quota may reach as high as 50%, doubling the current 25%, while quotas will be substantially reduced to reflect market realities more accurately.

Kathleen Van Brempt, S&D vice-president on international trade, said:

“These measures do not come a second too soon. They help to stop the flood of oversubsidised steel dumped on our market, but that does not mean the sector is out of the woods yet. The Steel Action plan proposes lower energy prices, an adjustment of the rules on public procurement, a ban on scrap exports, boosting domestic demand for European steel and aluminum, and a revision of the state aid rules – all good measures. Now, the Commission must put its money where its mouth is and implement them immediately.”

Bernd Lange, S&D MEP responsible for US relations and INTA chair, said:

“This new trade defence instrument finally delivers real protection for European steel. It’s more flexible, targeted, and quicker to respond than the old system, closing loopholes and preventing circumvention with clearer rules.

“However, this is just a first step. While it helps fight unfair competition, we must also push for green steel lead markets, incentives in key industries, and fair electricity prices to secure the future of Europe’s steel sector.”

Brando Benifei, S&D coordinator in the INTA committee, added:

“Our political Group has long been calling for stronger measures to protect European steel production, which is currently under severe pressure. The Commission’s proposal is a good first step, but it must be seen as the beginning of a real change of pace. That is why the European Parliament will soon start its work to strengthen its content. We need more effective European trade defence instruments, capable of protecting not only steel but all sectors affected by overcapacity and other severedistortions of the level playing field.”

Notes to editors:

The current safeguard mechanism, introduced in 2019 amid US steel tariffs, caps imports under a general quota system but lacked country-specific and product-specific flexibility. The new instrument uses tariff rate quotas with precise country allocations and stricter “melted and poured” rules of origin to exclude steel with significant Chinese content. The move aligns with ongoing negotiations between the EU and the US on steel overcapacity and aims to maintain WTO compliance by invoking Article XXVIII of the GATT.