Orgalim, the association representing Europe’s technology industries, warned that the European Commission’s proposed reform of the EU steel safeguard system could seriously harm downstream industrial users. In a paper released on 14 November 2025, the organization said the draft regulation risks becoming a devastating threat to sectors heavily dependent on steel.

The assessment stated that the proposal would introduce a far more restrictive regime, reducing tariff-free quotas, sharply raising out-of-quota duties, and tightening origin-verification rules. These changes would significantly increase costs for manufacturers already facing a third year of economic decline, with falling turnover and reduced investment. Companies relying on specialised steel grades, often sourced outside the EU or produced only in limited quantities within Europe, would face major sourcing challenges.

Orgalim estimated annual tariff costs could exceed EUR5.4 billion, nearly seven times the 2024 level, and warns the reform could intensify domestic steel price increases and place EU manufacturers at a structural disadvantage.