The stock moved higher in early trade, tracking positive investor sentiment following the announcement, which is seen as a key policy shift in the European market, where Tata Steel has a significant presence.
The Commission’s proposal, tabled on October 7, 2025, is designed to replace the existing EU steel safeguard measure that is due to expire in June 2026. The new plan was introduced as part of the broader EU Steel and Metal Action Plan and focuses on strengthening the long-term viability of the steel sector, considered strategically critical to the bloc’s economy and green transition efforts.
According to the Commission, the proposed regulation will:
- Limit tariff-free import volumes to 18.3 million tonnes per year — a 47% reduction compared to 2024 quotas,
- Double out-of-quota duty levels to 50% (from the current 25%),
- Enhance market traceability through a “Melt and Pour” requirement aimed at preventing circumvention of trade measures.
The proposal responds to calls from EU stakeholders — including workers, industry representatives, and members of the European Parliament — to ensure strong and permanent protection of the EU steel sector, which has been severely impacted by rising global overcapacity.
The Commission noted that global overcapacity exceeds five times the EU’s annual steel consumption, putting significant pressure on domestic producers.
European Commission President Ursula von der Leyen stated that protecting the steel industry is crucial for EU competitiveness and strategic autonomy, urging the Council and Parliament to act quickly on the proposal.
The measure is said to be fully WTO-compliant and will go through the ordinary legislative procedure, with final approval resting with the Council and the European Parliament.
In 2024, the EU steel industry reported record losses, with capacity utilisation dropping to 67%, well below healthy levels of around 80%. Since 2007, the industry has lost around 65 million tonnes of capacity and between 9,000 and 100,000 jobs.
The Commission’s latest plan aims to address these structural challenges while maintaining open trade principles and working with like-minded countries to improve supply chain resilience.
The policy proposal comes at a time when Tata Steel has been actively engaged in the transformation and restructuring of its European business. The company has operations in the UK and the Netherlands and has previously stated that Europe remains a key market in its global portfolio.
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