EU nations have broadened the carbon border adjustment mechanism to cover nearly 400 new steel and aluminium products. The change targets goods that were previously re‑exported in finished form, a loophole that let importers dodge the levy. By tightening the scope, Brussels aims to level the playing field for domestic manufacturers and sustainability goals today.

The expansion adds 200 more items, raising the estimated impact to €160 billion in annual imports. Negotiations with the European Parliament will decide the final list, which is slated to take effect in 2028. The move follows a 180‑product proposal last year that aimed to close a gap exploited by finished‑product exporters in the EU market.

EU Commissioner Wopke Hoekstra praised the extension as a win for fair competition, noting it curbs changes needed by industry. France secured a carve‑out for cement and heavy construction materials destined for Mayotte and Réunion, citing logistical constraints. The adjustment faces pushback from exporting nations such as Mozambique and Russia, who argue it burdens developing economies.

By tightening the levy, Brussels aims to protect European steel and aluminium producers from cheaper imports while keeping decarbonisation targets on track. The revised list will also signal to global suppliers that the EU will enforce its climate rules more rigorously. Companies adapting to the new rules will see higher compliance costs, reshaping supply chains.