The European Commission is set to implement measures regarding the aluminium and steel sectors in response to US tariffs. This includes launching an investigation into potential safeguards to protect its industry.
A proposed carbon border levy aims to address circumvention issues, with plans to expand its coverage to include more steel and aluminium-intensive products. Additionally, amendments to the carbon border levy are being considered.
Export Restrictions And Duties
Furthermore, the Commission plans to introduce export restrictions and duties on European scrap steel and metals by the third quarter of the year.
The European Commission’s decisions are shaping up to directly affect metals and derivatives markets in the near future. Those with exposure to aluminium and steel will need to factor in both immediate risks and longer-term structural shifts.
An investigation into safeguards suggests a willingness to impose trade barriers to shield domestic producers. If restrictions emerge, this could tighten supply within the bloc, raising costs for industries reliant on steady metal imports. Those trading contracts linked to these commodities must assess potential price fluctuations that may result from fears of constraints on overseas suppliers.
The proposed carbon border levy adjustments are another layer of complexity. Initially conceived to counter carbon leakage, its expansion would bring additional types of metal-intensive goods under regulatory oversight. If more sectors fall under its scope, demand for certain raw materials might change direction, depending on how heavily affected industries react. The possibility of further amendments remains on the table, which leaves uncertainty over final compliance costs.
Impact On Supply Chains
Plans to impose export restrictions and duties on scrap steel and other metals by late Q3 create a separate supply concern. Keeping more materials within the bloc could create tighter domestic availability for recyclers outside Europe. Markets that rely on steady inflows of European scrap may have to adjust sourcing strategies, which could lead to price shifts across multiple exchanges.
All these factors suggest that supply chains will need to reposition over the next several months. Costs within and outside the EU are unlikely to remain unaffected. It will be important to monitor how quickly these shifts take effect, particularly if there are delays in the rollout of proposed measures.
