Post by CO2 IQ

Steel safeguards × CBAM: Landed costs for steel products to jump in 2026 🔗 With the EU Commission’s proposal for new protective measures, EU buyers face two added cost layers next year: a tightened tariff-rate-quota (TRQ) regime and increasing payments for CBAM certificates. 📈 Based on EU trade statistics and CO2 IQ calculations, 29.8 m tonnes of steel imports with a value of €26.6 bn fall under both, the proposed safeguards and CBAM. Without any trade adjustments, added costs would be 37% driven by: 1️⃣ Safeguard tariffs: when category quotas are exhausted, a 50% ad-valorem charge applies. Using the proposed TRQs against 2024 import volumes yields ~€5.9 bn. 2️⃣ CBAM carbon cost: with CBAM fully phased-in, applying global emission intensities and 2024 ETS prices to CN-code import volumes adds ~€3.8 bn. For buyers, this brings a double cost-exposure. Expect widening price spreads depending on product and origin, and increasing volatility towards end of quarters. Watch quotas and your emission footprints! ☝🏾 Next week we’ll disentangle how the proposed quotas compare to 2024 imports and how payments work (out-of-quota tariffs vs CBAM certificates). 👉 Full breakdown in our blog: see link in comments. #CBAM #Steel #Procurement #LandedCost #EUTrade #CarbonPricing #Manufacturing #SupplyChain