10 end-user associations oppose new EU steel quotas
European steel end-user associations have expressed concern about the negative impact of the proposed tougher alternative to protective measures on EU processing industries, according to a joint statement released on January 6.
The statement was signed by 10 associations, including the European Automobile Manufacturers Association (ACEA), the European Association of Household Appliances (APPLIA), the European Metal Packaging Association and the European Construction Equipment Committee (CECIMO).
On October 7 last year, the European Commission published its official proposals to replace the EU steel protection system, which detail significant reductions varying in volume across product categories, including the classification of steel products by CN code and the corresponding allocation of total quotas of 18,345,922 tons – a total reduction of 47%. And tariff quotas were proposed at 50% compared to protective duties, which currently amount to 25%.
The new measures are expected to enter into force in July 2026, after the expiration of the current guarantee system.
Although the associations recognize that some protectionism is necessary to overcome the effects of global overcapacity and ensure a level playing field, they strongly oppose the proposed parameters of measures and believe that the European Commission may "go too far in fencing off the European market."
A significant reduction in quotas, combined with a doubling of tariff duty rates to 50%, means that more imports will go beyond the allocated quotas, and end users will have to "cover additional tariff costs of 5 to 9 billion euros per year," according to the association, assuming import volumes similar to those that we were in 2024.
The groups estimate that the resulting increase in steel prices could be well above the European Commission's average forecast of 3.25%. They warned that price increases for certain categories of goods could amount to up to 30%, which would hit both importers and companies that rely on exports of finished goods from the EU.
And the introduction of the "melt and pour" rule will further increase the administrative burden on small companies. "Obtaining information about the origin of low-value goods will be almost impossible. Such an onerous rule should be applied much more carefully and practically and in stages within a realistic timeframe," the statement said.
According to the proposed system, the import of specialized high-quality steel required for complex industrial applications will be significantly