Steel and metals action plan: new proposal targeting import in steel and aluminium industry

The proposal will replace the current safeguard measures in place for the steel sector that are set to expire on 30 June 2026. The main proposals are:

• The tariff-free import volumes will be limited to 18.3 million tonnes a year (a reduction of 47% compared to the 2024 quota).
• The out-of-quota duty will double from 25% to 50%
• Prevention of circumvention by introduction of the Melt and Pour requirement.

With these safeguard measures the EU both wants to ensure the future of the European steel and aluminium industry. Furthermore, the EU Commission intends to stimulate the local producers to decarbonise, in line with the EU’s green agenda.

In the SMAP the EU also highlights possible circumvention of another regulation which affects the steel and aluminium industry, namely CBAM (the Carbon Border Adjustment Mechanism). Currently the product scope of CBAM does not include all finished products but rather semi-finished products and raw materials. Furthermore, there is a chance of resource shuffling. Whereby only goods with lower carbon footprints are exported to the EU and goods with a large carbon footprint are shipped to other countries. The EU Commission has announced a legislative reform in Q4 2025 to address the circumventions.

The new proposal can have a significant economic impact on companies importing steel and aluminium from outside the EU.