Issue 13, 2025 - This week's editorial: EU tightens safeguards, US tariffs spook carmakers

The European Commission confirmed tighter steel safeguard measures last week, sparking a mixed reaction, while the US announced a 25% tariff on foreign-made cars, spooking European carmakers which are already suffering tough market conditions that reflect on steel demand. British Steel meanwhile said it was starting consultations on closing its blast furnaces, almost 12 months after other UK primary steelmaker Tata Steel confirmed it was ceasing iron-making.

Among the EU safeguard measure adjustments are new caps of 13-30% on 16 product categories’ residual quotas, the scrapping of 65% of redistributed sanctioned Russia and Belarus quota volumes for some categories, and the elimination of the carry-over of unused quota volumes between quarters. Restrictions have been tightened but remain far more nuanced and complex than the US blanket 25% steel tariff. In the meantime, the Commission is working on a new measure to replace safeguards once they lapse in June 2026.

The EU market initially perceived the adjustments as being insufficient to significantly limit imports and feared the uptrend over recent months in hot rolled coil prices could reverse as a result. However, buyers’ willingness to import material is reported to be limited. Moreover, Germany’s planned €500 billion ($540 billion) infrastructure package and reduced HRC supply due to maintenance at ArclelorMittal units in Dunkirk and Fos-sur-Mer have boosted sentiment. Notable HRC has been booked in recent weeks from Indonesia, which is not covered by safeguards, but this has been played down by some participants.

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