MEP Pierre Jouvet (S&D) has asked the European Commission whether it plans to extend the Carbon Border Adjustment Mechanism (CBAM) to cover processed products made from steel and aluminium, warning that the current scope penalises EU manufacturers. In a written parliamentary question submitted on 17 June 2026, Jouvet highlighted that CBAM currently applies only to raw steel and aluminium, while imported finished goods — such as heat pumps, ventilation systems, and tyres — avoid the carbon cost, creating an asymmetric burden on European producers.
Jouvet cited industry estimates that the upstream CBAM cost can account for 5% to 10% of the final price of heating and cooling equipment, and noted that tyres imported from China are not subject to CBAM even though the steel wire rods used in European-made tyres are. The MEP asked the Commission two specific questions: whether it has assessed the impact of this asymmetry on the competitiveness of manufacturing sectors that process steel or aluminium, and whether it intends to expand CBAM's scope to include processed products, and if so, when.
The question reflects a growing concern among EU manufacturers that CBAM, designed to prevent carbon leakage by imposing a carbon price on imports, may inadvertently disadvantage domestic processors who face the carbon cost on inputs while competing against finished imports that do not. The Commission is expected to reply within approximately six weeks; its answer will signal whether it plans to propose a scope extension and on what timeline.
EU manufacturers of processed steel and aluminium products (e.g., heat pumps, tyres) would benefit from a level playing field if CBAM is extended, but could face higher input costs if the mechanism is tightened. Importers of finished goods from outside the EU would face new compliance costs and potential price increases. EU consumers might see higher prices for imported goods if CBAM is expanded. The Commission must balance trade competitiveness with climate goals and WTO compatibility.