Brussels is raising the cost of some electrical steel imports to protect domestic producers. But transformer makers warn the remaining few cannot supply everything the industry needs, which could make expanding Europe’s power grids more expensive.
The EU is applying temporary safeguards to imports of electrical steel, seeking to protect European producers of the material used in power transformers. The rules enter into force on Friday 25 September and will apply for 155 days, until 26 February 2027.
During that time, the European Commission will continue investigating whether longer-term safeguards are justified. The temporary measures cover grain-oriented electrical steel, the laminations and cores made from it, and steel cores already fitted inside imported transformers.
The Commission says rising imports have caused serious harm to EU producers. According to its investigation, their share of the European market fell from 66 per cent in 2021 to 43 per cent in 2025, despite growing demand. It also points to global excess capacity and trade restrictions elsewhere that have redirected steel towards Europe.
How the safeguards work
The EU has set import quotas and price thresholds that vary by product. For grain-oriented electrical steel, the threshold ranges from €2,800 to €3,400 per metric ton within the quotas, depending on the type of steel. Once a quota is filled, the price tresholds rise to €3,500 per ton.
If an import arrives below the applicable threshold, the importer pays a duty equal to the difference. Steel priced at or above it faces no additional duty.
The measure will transfer over EUR 700 million per year from the EU transformer industry, to just two domestic producers of grain-oriented electrical steel. — Diederik Peereboom, T&D Europe
Filling a quota does not stop further imports. It means that subsequent shipments face a higher price threshold. The Commission says this approach should protect EU steel producers while allowing transformer makers to continue importing the grades they need.
Thyssenkrupp Steel, one of the last remaining European steelmakers, welcomed the decision. “The provisional measures are balanced and help preserve critical industrial production, innovation and jobs in Europe, reduce dependencies and strengthen resilience,” said its chief executive, Marie Jaroni. The company had previously announced production cuts at its sites in Germany and France, citing pressure from imports.
Transformer makers question the cost
Grain-oriented electrical steel is essential to the transformers that carry electricity across power networks. But companies making those transformers fear the safeguards will raise their costs as Europe expands its grids.
Transformer makers warned that Europe’s two producers of grain-oriented electrical steel—Germany’s Thyssenkrupp and Poland’s Stalprodukt—cannot meet all of the industry’s needs. They also criticised the absence of commitments to expand production.
The trade association Transmission & Distribution Europe (T&D Europe) put a figure on the potential cost: “The measure will transfer over EUR 700 million per year from the EU transformer industry, to just two domestic producers of grain-oriented electrical steel,” said its secretary general, Diederik Peereboom.
The Commission argues that its price thresholds will let transformer makers continue importing specialist steel, particularly from Japan and South Korea. It has also covered steel cores inside imported transformers, so producers abroad cannot sidestep the safeguards simply by shipping finished equipment.
To make the measures definitive would require the support of at least 15 member states representing 65 per cent of the EU population.
