EU Adopts Provisional Safeguard Measures on Grain-Oriented Electrical Steel

The European Union has adopted provisional safeguard measures on imports of grain-oriented electrical steel (GOES), a material that plays a critical role in power transformers and electricity infrastructure. The European Commission announced the measures on 18 September 2026, with the new rules taking effect on 25 September 2026.

The decision comes after an investigation into rising imports and growing pressure on European producers. The measures are intended to provide temporary protection to the EU industry while maintaining access to imported material for transformer manufacturers and other downstream users.

What Is Grain-Oriented Electrical Steel?

Grain-oriented electrical steel is a specialized steel product designed to provide efficient magnetic performance. It is primarily used in the cores of power transformers, which are essential for transmitting electricity over long distances and distributing it to industrial, commercial and residential users.

Because transformers are a key part of electricity grids, GOES is closely connected to Europe's plans to expand and modernize its energy infrastructure. The European Commission considers the material strategically important for the security and resilience of the EU energy system.

Why Did the EU Introduce Safeguard Measures?

The European Commission launched its safeguard investigation in March 2026 following concerns about increasing imports of GOES and related products. The investigation examined whether the growth in imports was causing serious injury to EU producers.

According to the Commission's findings, EU consumption of GOES and related laminations and cores increased significantly between 2021 and 2025, while imports grew at a substantially faster rate. Imports as a share of EU consumption increased from approximately 34% in 2021 to 57% in 2025.

The Commission also identified global overcapacity and the closure or restriction of traditional export markets as factors contributing to increased import pressure on the European market.

How Will the New Measures Work?

The provisional safeguards combine tariff-rate quotas with price thresholds. Imports within the established tariff-rate quotas can enter under specified conditions, while imports exceeding the relevant limits are subject to additional safeguard duties.

The measures also cover more than the basic GOES product. They extend to steel laminations and transformer cores made from GOES. In addition, the rules cover cores incorporated into imported transformers.

This wider scope is designed to prevent trade from simply shifting from imports of electrical steel to downstream products such as transformer cores or complete transformers containing the material.

Reuters reported that the minimum price levels for GOES are set within a range of approximately €2,800–€3,400 per metric ton for quota volumes, while volumes above the quota are subject to a €3,500-per-ton level.

Measures Will Apply for 155 Days

The provisional safeguard measures will apply for 155 calendar days from their entry into force. Under the implementing regulation, they take effect on 25 September 2026.

The measures are temporary because the wider safeguard investigation is still ongoing. Under EU rules, the investigation normally has to be completed within nine months, although this period can be extended to 11 months in exceptional circumstances.

Any definitive safeguard measures would require approval through the relevant EU procedure, including a qualified majority vote in the Safeguard Committee.

Impact on European Steel Producers

The new measures are particularly significant for the remaining European producers of grain-oriented electrical steel. European steel industry representatives have welcomed the decision, arguing that rising imports and global overcapacity have placed pressure on domestic production.

EUROFER said GOES imports in 2025 were 125% higher than in 2021 and increased further during 2026. The association argues that maintaining European production capacity is important for the resilience of the continent's electricity infrastructure.

Thyssenkrupp Steel, one of the European producers affected by the competitive pressures in this market, also welcomed the provisional measures. The company highlighted the fact that the safeguards cover the broader transformer value chain rather than focusing solely on the raw electrical steel product.

Implications for Transformer Manufacturers

The measures could also affect companies involved in transformer manufacturing and procurement. Since the safeguards extend to laminations, cores and certain transformer components, manufacturers will need to consider the new trade requirements when sourcing materials and finished products from outside the EU.

At the same time, the tariff-rate quota system is intended to keep the EU market open to imports. This is important because European transformer manufacturers continue to rely on electrical steel supplies to meet demand associated with grid expansion, renewable energy projects and broader electrification.

The European Commission's approach therefore combines restrictions on import pressure with continued access to foreign supply.

What It Means for the Global GOES Market

The EU's decision could have implications beyond European steel producers. GOES is a specialized product with applications closely tied to transformers and energy infrastructure, meaning changes in European import conditions can affect international suppliers, traders and downstream manufacturers.

Exporters supplying the European market may need to reassess pricing, quota availability and supply strategies. Companies that manufacture transformer cores or complete transformers outside the EU may also need to account for the expanded scope of the safeguard measures.

The policy could also encourage greater attention to regional supply chains as Europe seeks to strengthen domestic capacity for materials considered important to its energy infrastructure.

Supporting Europe's Energy Infrastructure

The safeguard measures arrive at a time when Europe is investing heavily in electricity networks, renewable energy and grid modernization. Power transformers are required to connect generation capacity with transmission and distribution networks, making the availability of transformer materials an important part of these investments.

By protecting domestic GOES production while retaining access to imports through tariff-rate quotas, the EU is seeking to balance industrial production with the needs of downstream users.

The longer-term outcome will depend on the results of the ongoing investigation and whether the European Union ultimately adopts definitive measures.

Looking Ahead

The provisional safeguards mark a significant development for Europe's grain-oriented electrical steel market. From 25 September 2026, importers and downstream users will operate under a new framework covering GOES, laminations and transformer cores.

For steel producers, the measures provide temporary trade protection while the investigation continues. For transformer manufacturers and international suppliers, they introduce new considerations around sourcing, pricing and market access.

As Europe continues to expand and modernize its electricity infrastructure, the availability of specialized materials such as GOES will remain an important part of the energy transition. The outcome of the EU's ongoing safeguard investigation will therefore be closely watched by steel producers, transformer manufacturers, traders and energy-sector stakeholders worldwide.