European metal packaging manufacturers have warned that proposed changes to EU steel safeguards could increase costs, limit access to specialist materials and disrupt supply chains across the region.

The concerns are set out in a joint downstream industry statement responding to draft trade measures aimed at tackling global steel overcapacity.

The statement, supported by organisations including Metal Packaging Europe, argues that while addressing overcapacity is a legitimate policy goal, the current proposal risks placing a disproportionate burden on steel-using sectors such as packaging, automotive and engineering.

Proposed safeguards and changes to steel import rules

The European Commission is preparing a new safeguard framework to replace existing steel measures due to expire in mid-2026. The proposal would significantly reduce tariff-free steel import quotas and raise the duty on volumes exceeding those limits.

According to the joint industry position, tariff-free imports could be cut by almost half, while the out-of-quota tariff would rise to 50%, up from 25% under current arrangements.

The Commission has estimated an average steel price increase of just over 3%, but downstream users say impacts will vary widely depending on product type and availability.

For metal packaging producers, steel grades used for food and beverage cans often require consistent quality and specific technical characteristics, which are not always available in sufficient volumes within the EU market.

Cost pressures and administrative burden for packaging producers

Industry groups estimate that the new safeguards could generate between €5bn and €9bn in additional annual costs for downstream sectors if steel import demand remains close to recent levels.

These costs would largely arise once quota limits are exceeded and higher tariffs apply.

The proposal also introduces a stricter “melt and pour” rule to verify the origin of steel, requiring detailed documentation of where steel was produced.

Packaging associations warn this could add complexity and administrative cost, particularly for smaller manufacturers and converters operating across multiple supply chains.

They argue that higher raw material costs would be difficult to absorb in a sector already facing pressure from energy prices, sustainability investment requirements and wider regulatory change.

Wider implications for eu packaging supply chains

The metal packaging sector is calling for a more balanced approach that protects EU steelmakers while preserving reliable access to imported steel where domestic supply is limited or unsuitable.

The joint statement urges policymakers to consider the cumulative impact of trade measures alongside other EU initiatives, including carbon pricing and environmental compliance rules.

Negotiations on the safeguard framework are ongoing between EU institutions, with final rules expected before the current measures expire.

Packaging industry representatives say the outcome will be critical for maintaining competitiveness, investment certainty and supply chain resilience across Europe’s metal packaging market.

The debate highlights the challenge facing EU policymakers as they seek to reconcile industrial protection, open trade and the needs of downstream manufacturing sectors that rely heavily on steel as a core input.