A Blueprint for saving Europe's steel to secure EU's strategic autonomy and Green sovereignty

The European steel and metal industries face an unprecedented, existential crisis that threatens not only industrial capacity, but also Europe's strategic autonomy, green transition, and economic security.

Since 2018, EU steel production has decreased by 31 million tonnes, imports now capture 27% of our domestic market, and the sector has lost over 95 000 jobs since 2008, including 18 000 in 2024 alone. This has now become a systemic failure, aggravated by global excess capacity, unfair trade practices, and a complete collapse of transatlantic trust.

The U.S. decision in March 2025 to re-impose 50% tariffs on EU steel has shut off a market that previously absorbed 4.6 million tonnes of European steel exports annually, while threatening to redirect 27 million tonnes of global steel flows toward Europe. With global overcapacity estimated to rise to 721 million by 2027 (five times EU annual production) Europe risks becoming the “last resort” dumping ground for excess, subsidised, high-emission steel. This tsunami of excess steel, heavily subsidized and often produced with the highest emissions, is devastating our industry and threatening Europe’s industrial sovereignty.

Current safeguards and existing trade defense instruments are failing..

The EU now needs a paradigm shift towards bold, comprehensive, permanent trade measures that effectively address the scale and persistence of global overcapacity. The EESC opinion on the Steel and Metals Action Plan provides a robust framework for action. The EU must urgently implement new comprehensive trade measures which:

• Set strict import caps (15% for carbon flat and stainless, 5% for carbon long).
• Apply tariffs universally to all products and countries (including those having Free Trade Agreements with the EU) with no loopholes, exemptions or free rides.
• Trace steel origins with  “melted and poured” rules to stop circumvention.
• Eliminate carry-overs quotas, enforce strong above-quota tariffs to send an effective price signal to the market, ideally at 50% (comparable to U.S. level).

Yet trade protection measures alone won't save EU steel. They are only part of the solution. Europe's energy prices are  2 - 3 times higher than in China or India—crippling our competitiveness and stalling clean steelmaking. The solution? Immediate energy price relief and network tariff rebates for energy-intensive industries, overhauled electricity markets to decouple fossil-fuel prices from electricity prices (alternative market design to transfer the cost benefits of low carbon electricity to consumers) and a dedicated hydrogen funding mechanism to power industrial transition.

Furthermore, CBAM (Carbon Border Adjustment Mechanism), designed to level the carbon playing field, must be fixed before it becomes a trap. Without refinement, it will fail to meet its stated objectives. Current loopholes risk undermining its effectiveness, necessitating legislative action to preserve free allowances for exports to non-EU countries. CBAM scope should also expand to cover downstream steel-intensive sectors.

Our opinion also addresses metal scrap, a strategic secondary raw material critical for circular economy's objectives. With ferrous scrap exports doubling and aluminum scrap projected to exceed 1.3 million tonnes, the Commission must implement comprehensive monitoring, potential export duties or tariff quotas, and enhanced enforcement against illegal exports.

This isn’t just about protecting an industry.  Europe's Green Deal and Defense Readiness 2030 hinge on steel. While other major economies (United States, China, India) support their steel industries through protective measures and investments, Europe must do the same. The framework outlined in our opinion gives us the blueprint for action that balances trade protection, energy competitiveness, environmental objectives, and social considerations.

Now is the moment for decisive action. European institutions, national governments, and industry must work together to put these measures in place without delay. The future of European strength starts with steel. Delay is defeat!

By Michal Pinter, co-rapporteur of CCMI/245 EU Steel and Metals Action Plan