The European Parliament debated the negative trade effects of global overcapacity on the EU steel market on 18 May 2026, with MEPs broadly agreeing that overcapacity, particularly from China, threatens EU steel jobs and competitiveness. Divergences emerged between those favouring unilateral trade measures and those advocating multilateral solutions.
EPP's Markus Ferber called for stronger trade defence instruments and a carbon border adjustment mechanism to level the playing field. ECR's Carlo Fidanza argued for immediate safeguard measures, warning of job losses. On the other side, Greens/EFA's Anna Cavazzini questioned whether trade remedies alone suffice, urging focus on global overcapacity dialogue. S&D's Kathleen Van Brempt stressed the need for a robust EU steel action plan with investment in green steel, while Renew Europe's Nicola Danti pushed for swift anti-dumping measures. The Left's Helmut Scholz criticized the Commission for insufficient action.
The Commission committed to presenting a steel action plan by July 2026, including a revised safeguard review. The debate highlighted a cleavage between protectionist and multilateral approaches. Unilateral measures (backed by EPP, ECR) could protect EU steel producers and workers in the short term but risk trade retaliation from China and higher costs for downstream users. Multilateral dialogue (favoured by Greens/EFA, S&D) may yield more sustainable solutions but could be slow, leaving the sector exposed in the interim. The outcome will affect EU steel producers, downstream users (e.g., automotive, construction), workers, and trading partners like China and Turkey.