Answer for question E-000575/25

EN E-000575/2025 Answer given by Mr Šefčovič on behalf of the European Commission (5.5.2025) The steel safeguard review investigation has concluded that the EU steel industry is under significant pressure caused by increasing global overcapacity, stalling domestic demand for steel and additional trade measures on steel imports adopted by third countries. To ensure that the safeguard measure remains effective in the present context, and taking into account the overall EU interest, the Commission considers that a number of adjustments to tariff rate quota management are necessary. These adjustments entered into force on 1 April 2025. The Steel and Metals Action Plan1 foresees that, by the third quarter of 2025 at the latest, the Commission will propose a long-term measure providing a highly effective level of protection to the EU’s steel sector. Resource shuffling refers to the export of less emissions-intensive materials production towards markets with higher carbon costs, while the overall carbon intensity of production remains constant. The Commission is assessing the risk and magnitude of resource shuffling and will, as part of the Carbon Border Adjustment Mechanism (CBAM) Anti-Circumvention strategy, identify policy options to minimise this risk. As announced in the Steel and Metals Action Plan, the strategy will be part of a legislative proposal for a CBAM revision by the fourth quarter of 2025. 1...