European Commission President Ursula von der Leyen said on Sept. 10, 2025 the EU will propose a new trade mechanism to curb steel imports and protect domestic producers, signalling a shift from temporary safeguards to a longer-term instrument. Von der Leyen made the announcement in her annual address to the European Parliament, stating existing steel safeguard measures cannot be extended beyond mid-2026 under current World Trade Organization rules. The Commission intends to bring forward a replacement proposal by the end of the third quarter of 2025, with the objective of addressing global overcapacity that has been weighing on European margins and hindering investment in decarbonisation of the sector. The proposed mechanism is intended to preserve “fair competition” and to give EU steelmakers a stable framework while they invest in lower-emission production methods; von der Leyen stressed the need to protect jobs and green investments in Europe’s steel industry. The announcement follows sustained industry pressure as cheap imports and weak demand have contributed to earnings pressure across European steel producers. The Commission’s plans come amid broader discussions in Brussels about trade defence instruments and state aid rules, and will require drafting, consultation with member states and likely negotiations before any new measure can take effect.