The European Commission's review of the EU safeguard measures on steel imports has introduced a level of uncertainty among steel importers. The review, initiated on December 17, 2024, follows a request by 13 EU member states due to the challenging situation faced by the EU steel sector. The review aims to address issues such as increasing global overcapacity and a continued decrease in EU steel demand.

The Commission is conducting a detailed investigation, which will continue until March 31, 2025. If necessary, the Commission will propose changes to the EU member states, requiring approval through a qualified majority vote for any changes to take effect. The current safeguard measures, which were initially introduced in July 8, 2018, and extended twice, are set to remain in force until June 30, 2026.

Potential changes to the safeguard measures include extending the application of the 15% cap on individual countries' use of the "other countries" category's quarterly quotas. This cap was introduced last year and has already impacted imports from countries like Vietnam, Japan, and Taiwan. The review may also propose an increase in the above-quota tariff rate from 25% to between 32% and 41%.

Steel importers are closely monitoring the situation, as any changes could significantly affect market dynamics and supply chains. The outcome of the review will be crucial in determining the future landscape of steel imports into the EU.