EU Council backs tougher steel trade shield as overcapacity fears mount

Mace | 16th December 2025 | Brussels, Political Consultants

EU governments back tougher steel import limits, opening talks with Parliament on new rules to counter global overcapacity pressures facing

EU governments have agreed a negotiating mandate on a new trade instrument aimed at shielding the bloc’s steel sector from the effects of global overcapacity, moving Brussels closer to replacing its expiring safeguard regime. Ambassadors signed off the Council position this week, giving the presidency the green light to open talks with the European Parliament on legislation first proposed by the European Commission in October. The initiative comes as the EU sharpens its focus on industrial resilience, competitiveness and security of supply, with steel increasingly framed as a strategic input for defence, infrastructure and the green transition. Officials involved in the talks say the aim is to avoid a legal cliff edge when current safeguards lapse in mid 2026 while sending a signal to global producers that Europe intends to keep its market tightly managed. At the core of the Council mandate is a sharp tightening of import volumes and penalties, largely mirroring the Commission’s origin...

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