European carmakers complain that the EU’s steel safeguard measures are excessive, as protections on silicon- and manganese-based ferroalloys, the Carbon Border Adjustment Mechanism (CBAM), and new safeguards disrupt annual hot-rolled steel contracts.

The European Automobile Manufacturers’ Association said procurement costs for steel-dependent industries are rising sharply due to CBAM and tighter import safeguards, arguing the European Commission’s measures have gone too far. The group also cautioned that proposed “melt and pour” rules would significantly increase administrative burdens, especially for small and medium-sized firms.

Meanwhile, high usage of quotas for automotive-grade galvanized steel from China and other countries suggests importers are stockpiling ahead of new safeguards expected to take effect in the second half of 2026, despite ongoing CBAM costs.