EU to tighten controls on steel imports and waste metal flows amid trade tensions

The European Commission is set to seek stricter controls over imports of steel and aluminium due to fears of diverted global supplies being dumped onto its markets, according to a draft paper seen by Euronews.

It also aims to restrict countries from closing themselves off to waste metal imports, according to the paper.

The Commission is set to present its final action plan on steel and metals present on Wednesday, providing guidelines on how to make European metal production more sustainable and competitive amid trade tensions with the US and fierce global competition.

The text makes clear that the EU executive is expecting overcapacity to worsen the trade situation in the steel markets after existing safeguard measures expire on 30 June 2026. "Instead, the problem may worsen as more countries restrict imports, making the EU a key destination for surplus steel," according to the draft.

For this reason “by the third quarter of 2025 at the latest, the Commission will propose a long-term measure providing an equivalent level of protection to the EU’s steel sector,” the document reads.

“The timing of the proposal will ensure that the new measure will be in force in time to replace the current safeguard and provide the same degree of defence against negative trade-related effects caused by global overcapacities and to base this approach on a combination of tariff quotas, taking account of security and resilience considerations, as well as of changes in EU demand, while maintaining a certain level of openness of the EU market,” the document adds. 

The European Commission will also launch an investigation for possible safeguard measures for the aluminium sector, since the combination of a loss of substantial market share of EU producers and the recent US tariff on aluminium are “likely to worsen the situation further with a significant threat of trade diversion from multiple destinations”, the paper says.

The document also specified that existing export restrictions imposed by third countries on exports of waste metals should be countered with reciprocal measures.