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Under the leadership of Cyprus, which took over the EU Presidency on 1 January 2026, the European Union is implementing new trade measures to protect the steel industry. This is necessary as global overcapacity continues to rise and the EU market remains relatively open to imports.
With worldwide steel production exceeding demand, the EU’s relatively open market has become a key destination for surplus steel imports. At the same time, European steelmakers are under pressure from high energy costs and the substantial investments required to shift toward low-carbon steel production. Lower import quotas and higher tariffs are intended to help address these challenges, particularly the impact of imports.
Current state of play
Discussions are still at an early stage. The Council of the EU must approve two key elements:
a mandate for the European Commission to renegotiate steel import quotas with major supplier countries such as Turkey and Japan;
and a compromise on the legal framework proposed by the Commission to turn the existing trade measures into permanent EU legislation.
The European Parliament is expected to adopt its position in the first quarter of the year. With current steel safeguard measures set to expire in June, negotiations between the EU institutions face a tight deadline. Cyprus, holding the Council presidency, will be responsible for steering talks on the Council side.
Key points of debate
One of the main fault lines concerns how compatible the new measures will be with World Trade Organization (WTO) rules. While the European Parliament may take a stricter view on WTO compliance than many member states, there is broad agreement across the EU that the steel sector needs continued support and that a lapse in protection after June must be avoided.
Outlook
If no agreement is reached in time, the EU steel industry could face a “cliff edge” with no trade protection from late June onward. With Parliament expected to complete its work in the first quarter, swift interinstitutional negotiations will be essential in the coming months.