German steel association welcomes EU trade defense measures

The German Steel Federation (WV Stahl) has welcomed the approval of the European Union’s new steel trade defense mechanism, describing it as an important step toward protecting the European steel industry from growing global overcapacity and import pressure.

The new framework, which is expected to receive final approval from the Council of the European Union, will replace the current safeguard measures due to expire at the end of June. It introduces country- and product-specific tariff-rate quotas, with imports above the allocated quotas facing a 50% tariff.

Industry association sees stronger protection

According to WV Stahl, the new mechanism provides greater certainty for steel producers at a time when the sector is facing increasing pressure from global excess capacity, state-supported production in third countries and growing trade barriers in other markets.

“Today’s decision sends a strong signal for the steel industry in Germany and Europe,” said Gunnar Groebler, President of WV Stahl. He argued that the measure demonstrates the EU’s commitment to maintaining fair competitive conditions for European steelmakers.

WV Stahl estimates that around one-third of steel consumed in the EU currently originates from non-EU countries and warns that uncontrolled import growth could put additional pressure on investment, employment and the industry's decarbonization efforts.

Calls for further adjustments

While welcoming the new trade defense framework, the association also called for further improvements.

Among its recommendations, WV Stahl advocates extending the mechanism to additional steel products and selected downstream steel-intensive goods to reduce the risk of trade diversion.

The association also supports the introduction of a "melted and poured" origin rule, which would determine a steel product’s origin based on where the steel was originally produced rather than where limited processing took place.

In addition, WV Stahl urged policymakers to review carry-over provisions for unused import quotas, arguing that large accumulations of unused volumes could increase pressure on the European market.

Focus shifts to implementation

Following the formal approval process, attention will now turn to the detailed implementation of the new trade defense measures.

WV Stahl said the European Commission should ensure that the mechanism remains effective, practical and resistant to circumvention while continuing to support stable industrial supply chains across Europe.

Sourc and Photo: WV Stahl