The European Association of Non-Integrated Metal Importers & Distributors (EURANIMI) has warned that the European Commission’s upcoming Steel and Metals Action Plan (SMAP) risks severely destabilizing the EU’s manufacturing base.
The proposal, currently before the European Parliament and Council, seeks to introduce a new import quota regime to replace the existing safeguard mechanism expiring on June 30, 2026, under WTO rules.
Quotas slashed, tariffs doubled
Under the draft SMAP, steel import volumes would be capped at roughly 50 percent below 2024 levels and up to 60 percent for stainless steel. Once quotas are exceeded, import duties would double from 25 percent to 50 percent.
EURANIMI warns that such restrictions, combined with the Carbon Border Adjustment Mechanism (CBAM), could trigger severe supply shortages and record-high prices.
Although the Commission frames CBAM as an environmental measure and SMAP as trade-related, EURANIMI argues that the two interact directly, amplifying their economic impact.
Potential 2021-style crisis of shortages and record prices
The association cautions that simultaneous implementation of CBAM (from January 1, 2026) and SMAP could recreate the post-COVID steel crisis of 2021, when supply bottlenecks and speculative pricing led to production stoppages across Europe.
EURANIMI lists several risks:
- Sharp price increases across the steel supply chain
- Shortages, especially in stainless long products
- Production line closures and relocation of operations due to loss of competitiveness
- Rising imports of finished goods, such as appliances, machinery and components, outside CBAM and quota coverage
Downstream manufacturers left exposed
EURANIMI also criticized the imbalance in EU policymaking, stating that large integrated steelmakers exert a strong lobbying influence, while downstream SMEs lack representation. According to the group, a policy designed primarily to protect upstream producers risks undermining Europe’s wider industrial ecosystem, which depends on affordable raw material access.
EURANIMI urges the European Parliament, Council, and industry stakeholders to ensure greater balance during the legislative process. It calls for a framework that supports both steel producers and the tens of thousands of small and medium-sized manufacturers reliant on imported semi-finished metals.