The European Automobile Manufacturers’ Association (ACEA) takes note of the announcement by the European Commission of its proposal to extend protection of the European steel market.
in ACEA, 08-10-2025
Automobile manufacturers source approximately 90% of their direct steel purchases in the EU and are most concerned about the inflationary impact that an effective continuation of the safeguard will have on European market prices.
The changing of key safeguard parameters, in particular the dramatic lowering of quotas and the doubling of the out of quota tariff to 50%, will significantly reduce the possibility to relieve pressure in the European market through imports. In addition, a new rule of origin based on the “melt and pour” principle will restrict imports further and create a massive administrative burden for European users of imported steel products.
The Commission needs to look individually at sectors like automotive where, despite a heavy reliance on domestic steel supply, our manufacturers still need to import certain quantities and qualities. Quotas for automotive grades have always been rapidly exhausted under the last seven years of the safeguard. The Commission also needs to understand the complexity of applying the “melt and pour” rule of origin in deep and global supply chain such as automotive.
“European steel is undergoing a decarbonisation transformation and we recognise in that sector many of the challenges that we have in making our industry competitive during radical change”, said ACEA Director General, Sigrid de Vries. “We do not contest the need for some level of protection for a commodity industry like steel but we feel that the parameters as proposed by the Commission go too far in ring-fencing the European market. We need to find a better balance between the needs of European producers and users of steel in this measure.”
We do not contest the need for some level of protection for a commodity industry like steel but we feel that the parameters as proposed by the Commission go too far in ring-fencing the European market.
