Bankinter | The European Commission (EC) is to reinforce the steel safeguard clause, as of 1st April. The EC will reinforce steel safeguard measures as of 1st April to ensure their effectiveness, in response to the tariffs established by the United States on 12th March (25% on all steel and aluminium imports).
The EC is working on a new long-term safeguard clause to maintain ‘highly effective protection’ for the sector, as the current one expires in mid-2026. In addition, it signals its intention to introduce a similar clause later for aluminium. Tariff quotas and tariffs are being strengthened; in addition, the carbon border adjustment mechanism (CBAM) or ‘climate tariff’ is being revived, for which a legislative proposal will be made by the end of 2025.
Bankinter analysis team’s view: The EC has already announced that it would take countermeasures proportionate to the tariffs established by Trump on 12 March (in two steps planned for 1 April and mid-April). The measures announced on Wednesday are intended to prevent American tariffs on steel and aluminium (25% worldwide) from transferring excess production to Europe, a market that has been suffering from weak demand for years and already has a high volume of imports. In addition, the EC points out that a strong steel and metals industry is crucial to the ReArming Europe Plan.
