EU to impose provisional safeguards to protect electrical steel from imports

The European Union announced on Friday plans to impose provisional import quotas and minimum prices for electrical steel and associated products, in an effort to protect the EU from cheap imports, primarily originating from Asian countries. The measure aims to safeguard the last remaining European producers of electrical steel, which is essential in industries like wind turbines and power grids.

The EU will establish quotas for grain-oriented electrical steel (GOES), laminations, and transformer cores containing the metal. The minimum price for steel will range between €2,800 and €3,400 per metric ton within quotas, while volumes exceeding quotas will attract a higher price of €3,500 per ton. The European Commission initiated an investigation into safeguards for GOES in March, with the provisional measures set to take effect on September 25, pending the final outcome of the investigation.

The EU intends to impose definitive measures upon the conclusion of the investigation, which would necessitate a qualified majority of EU members' consent. It is worth noting that electrical steel was not included in earlier protective measures for the EU's struggling steel industry, which has been under significant pressure from low-cost competition, particularly from China.

Thyssenkrupp, a major steel player, recently announced temporary production suspensions at its electrical steel facilities in Germany and France due to rivals offering discounts as high as 25percent on excess capacity. The EU's decision comes amid mounting calls for enhanced protection against China, the continent's second-largest trading partner after the United States.

Automotive, chemical, and steel firms are all grappling with heightened pressure from Chinese competition. Importantly, China has long been a major source of electrical steel and its downstream products for the EU, accounting for over 50percent of total imports in 2025.