Commissioner Wopke Hoekstra, in a written answer on 14 July 2026, defended the Commission's approach to protecting downstream steel and aluminium processors from the combined effects of the Carbon Border Adjustment Mechanism (CBAM), global overcapacity, and non-EU subsidies. He highlighted that the Commission has proposed extending CBAM to selected steel- and aluminium-intensive downstream goods, including intermediate and final consumer products, and pointed to existing trade defence measures as tools to address unfair competition.
The answer responds to a parliamentary question from MEPs Susana Solís Pérez and Esther Herranz García (both PPE), who warned that downstream manufacturers face a compounding cost crisis: rising EU ETS costs, CBAM import charges, and forthcoming steel overcapacity regulation increase input prices, while finished products like cookware and cutlery receive no protection. They noted that anti-dumping duties on Chinese steel (up to 50%) and aluminium (up to 24.5%) do not extend to finished products made from those subsidised materials, and that non-EU competitors benefit from export tax rebates of up to 10%.
the CBAM scope extension is part of a legislative proposal, and the Temporary Decarbonisation Fund (proposed for 2026-2027) may help reduce downstream costs indirectly. However, the answer remains vague on monetisable compensation for downstream producers, stating only that the Fund 'may also decrease associated downstream costs' and that a structural solution will be sought in the EU ETS review. On trade defence, Hoekstra pointed to over 240 existing measures, including safeguards on steel and aluminium products, and invited industry to contact the Trade Defence Complaints Office to discuss procedures.
The Commission favours extending CBAM to downstream goods as an environmental measure, justified by carbon leakage risk, rather than introducing separate compensation schemes. It relies on existing trade defence instruments to address competitive distortions from subsidised imports. Institutional follow-up: The CBAM extension proposal is under negotiation; the Temporary Decarbonisation Fund is temporary, and a permanent solution is expected in the EU ETS review, which is ongoing. Industry stakeholders may pursue anti-subsidy complaints via the Trade Defence Services.