The European Commission has proposed a plan to protect the EU steel sector from the unfair impacts of global overcapacity, a move it considers vital for the industry's long-term health. This proposal will replace the current safeguard measure when it expires in June 2026.

The new measures include significantly doubling the out-of-quota duty to 50% from the current 25%. The plan also aims to control the market by limiting tariff-free imports to 18.3 million tons annually, a 47% reduction from 2024 quotas. Besides, to prevent companies from circumventing these rules, the Commission is also introducing a Melt and Pour requirement to strengthen product traceability.

Commission President Ursula von der Leyen said this action is vital for EU competitiveness, economic security, and strategic autonomy. The plan fully meets WTO rules, and the EU intends to negotiate with trading partners to offer them specific country allocations.

The regulation now awaits approval from the European Council and Parliament.