The European Commission (EC) plans to introduce a new mechanism to restrict steel imports in order to safeguard regional manufacturers, EC President Ursula von der Leyen announced on September 10.

In her annual State of the Union address, von der Leyen highlighted that global overcapacity is eroding profit margins and reducing incentives for companies to pay a premium for environmentally sustainable production. She said the Commission will propose a long-term trade instrument to replace the current protective measures for steel, which are set to expire.

The initiative follows a July proposal by France’s Minister of Industry, supported by 11 member states, calling for comprehensive EU trade measures. The plan aims to secure the competitiveness of the steel sector and maintain capacity utilization near the EC’s 85% target, with implementation preferred before the June 2026 deadline.