EU and UK Prolong Steel Safeguard Measures Until 2026

The European Commission has officially extended its steel safeguard measures for an additional two years, now set to expire in June 2026. This announcement came on June 25, 2024, following a comprehensive investigation prompted by requests from 14 EU member states. The investigation underscored the ongoing necessity of these measures to protect the EU steel industry from significant harm​​.

Several critical factors were identified in the investigation that continue to pressure the EU market. These include sustained high levels of 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. Furthermore, there has been a notable decline in steel demand within the EU, exacerbating the market strain​​.

Initially implemented in July 2018 as a response to the US's Section 232 tariffs on steel, the EU's safeguard measures involve Tariff-Rate Quotas (TRQs). These quotas permit specific volumes of steel imports at lower duty rates, with a 25% duty imposed on imports that exceed these quotas. The recent extension also includes technical adjustments to better reflect current market conditions, effective from July 1, 2024.

In a similar move, 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, was based on a recommendation from the Trade Remedies Authority (TRA). The UK steel industry has welcomed this extension as crucial for its protection amid similar global market pressures and imbalances​​.

Experts in the industry have emphasized the importance of these measures in maintaining the stability of the steel markets within both the EU and the UK. They argue that these safeguards are essential for counteracting the effects of global overcapacity and redirected trade flows, providing necessary support for domestic producers​.

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