EU and UK Extend Steel Safeguard Measures to 2026

In a significant policy update, the European Commission has extended its steel safeguard measures for an additional two years, setting the new expiration date to June 2026. This decision, announced on June 25, 2024, follows an in-depth investigation prompted by 14 EU member states, which highlighted the necessity of these measures to prevent significant damage to the EU steel industry​.

The investigation identified several critical factors contributing to the ongoing import pressures on the EU market. These include persistently high global steel production capacity, increased exports from China to third countries (notably in Asia), and a rise in trade defense and restrictive measures by other countries. Additionally, there has been a significant decline in steel demand within the EU, further straining the market​.

First introduced in July 2018 in response to the US's Section 232 tariffs on steel, the EU’s safeguard measures involve Tariff-Rate Quotas (TRQs). These quotas allow certain volumes of steel imports at lower duty rates, with a 25% duty imposed on imports exceeding these quotas. The latest extension includes technical adjustments to better align the measures with current market conditions, effective from July 1, 2024.

Similarly, the UK government has extended its steel safeguard measures until June 30, 2026. This decision, approved by the UK Secretary of State for Business and Trade on June 26, 2024, came after a recommendation from the Trade Remedies Authority (TRA). The UK steel industry, facing similar global pressures and market imbalances, has welcomed this extension as vital for its protection.

Industry experts have underscored the importance of these measures in maintaining the stability of the steel market within the EU and the UK. They argue that the measures help counteract the effects of global overcapacity and redirected trade flows, providing a necessary buffer for domestic producers​​.

In conclusion, both the EU and the UK are taking significant steps to safeguard their steel industries from ongoing global market pressures, ensuring stability and protection for the foreseeable future.