Assofermet strongly opposes EU Commission proposal on new steel safeguard measures

In an official statement, Assofermet – Confcommercio Imprese per l’Italia, representing Italy’s steel trade, distribution, and service centre sector, has expressed strong opposition to the European Commission’s proposed regulation introducing new measures to replace the existing EU steel safeguard.

Assofermet warns that the proposal, as currently drafted, represents “a steel vice for all distributors and processors” and effectively serves as “a protective shield for EU steel producers at the expense of downstream distribution and manufacturing companies — the true core of Europe’s competitiveness.”

“A captive market that threatens EU industry”

The association highlights that the proposed 50% tariff once import quotas are exhausted, combined with across-the-board quota reductions, would effectively close off supply channels from non-EU countries and make alternative sourcing impractical.

“These measures will create a captive market and drive significant price increases that will impact the entire European manufacturing sector,” Assofermet stated.

According to the association, the resulting loss of competitiveness will severely harm steel-using manufacturers, many of which are long-established exporters that rely on stable and diversified supply chains.

Impact on EU distributors and service centres

Assofermet warns that steel distributors, importers, and service centres — the essential link between EU steel producers and industrial users — would be forced to drastically adjust inventories and warehouse structures, disrupting established supply relationships. “The economic interests of EU manufacturers that depend on a steady and flexible steel supply will be directly damaged,” the statement continued.

Cumulative burden of protectionism

The association also points to the cumulative effect of protectionist instruments already in force:
the safeguard measures introduced in 2018, numerous anti-dumping duties (most recently on cold-rolled coils), and the upcoming Carbon Border Adjustment Mechanism (CBAM) from January 2026. Together, Assofermet warns, these measures risk closing the EU market to imports entirely.

While recognising that European steelmaking is a strategic asset, Assofermet argues that excessive protectionism will have the opposite effect: “The only certain outcome will be the relocation of manufacturing and the erosion of Europe’s industrial fabric.”

Call for competitiveness and demand stimulus

Despite repeated appeals, Assofermet says the EU Commission continues to ignore the needs of downstream industries, which depend on access to competitive steel supplies. “Competitiveness must remain the guiding principle of EU industrial policy,” the association stressed.

Assofermet confirmed that it will continue to engage with the Italian government and EU institutions to advocate for measures that stimulate steel consumption and demand, rather than impose further restrictions.

Source: Assofermet, Photo: Fotolia