The European Union must revise its tariff policy on imports of construction materials from non-member states, especially from Eastern countries — this was the key message from participants at the recent “EU Economic Security” conference. Currently, the EU is imposing increasingly strict environmental and regulatory obligations on its own producers while failing to update its trade policy. This imbalance is gradually eroding the competitiveness of European businesses, reducing output, and threatening jobs across the industry.
A particularly alarming trend is the rapid increase in imports of construction materials from the East, especially in sectors like asphalt. According to the 2025 report “The Construction Materials Market Needs Change”, published by the Association of Roofing Felt Manufacturers (SPP) using data from PMR, at its peak, over 75% of Poland’s rolled asphalt product imports and over 50% of non-rolled asphalt products came from Russia alone.
This situation stems from a fundamental imbalance in the EU’s trade and environmental policies. European producers — including Polish companies — must comply with ever-stricter EU regulations, while competing against imports from countries that face no such constraints. The lack of protection for the EU’s internal market, combined with wage pressures and rising labor costs, is hurting the price competitiveness of, among others, Polish construction products in Western European markets.
According to industry experts, geopolitical uncertainty is one of the biggest challenges facing the construction materials sector.
“Geopolitical uncertainty — and economic instability in Poland in general — is, I believe, our greatest challenge. Currently, our sector is protected by sanctions against aggressive imports from the Russian Federation. Before these sanctions, we faced a completely uneven playing field: zero import tariffs on goods from Russia and a 12% export tariff to Russia,” said Konrad Machula, President of the Association of Roofing Felt Manufacturers, in an interview with Newseria.
At the end of June, the Employers’ Union of Construction Materials Manufacturers will hold a meeting in Brussels with Members of the European Parliament and European Commission representatives to continue discussions on EU trade policy.
Machula emphasized that the absence of tariff parity enabled Russia to flood the Polish market with little resistance. Additionally, Russian law explicitly supported domestic business and exports to the EU. Under one such law, suppliers of raw materials for roofing felt production were required to offer discounts of up to 20%. According to Machula, this created a classic case of dumping. He warns of the consequences if sanctions are lifted.
“It was a textbook case of dumping. Competing under those conditions was completely unfair. The aggressive trade practices of Russian players allowed them to quickly capture 20% of the Polish market and become the dominant supplier,” Machula said. “We are very concerned about what could happen if the sanctions are lifted or expire — and Donald Trump has already signaled that such a move is on the table.”
Currently, Russian companies are not allowed to operate in Poland’s construction materials market due to sanctions — asphalt and related products are included in the EU’s eighth sanctions package. However, there is a risk that these restrictions might be rolled back. Should that happen, Russian companies — already familiar with the EU market — may reenter with aggressive pricing strategies and an aim to regain market share.
“Trump is already suggesting that sanctions should be removed. If that happens, Russian companies — who already know how to operate in the European market — will likely return aggressively. If nothing changes, we’ll be leaving the door wide open to their expansion,” Machula warned.
Before the sanctions were introduced, imports from Russia and Belarus were growing at an unprecedented rate, driven by cheaper and often state-subsidized raw materials. This was especially evident in the bituminous roofing felt sector.
“Imports from Russia and Belarus were growing fast because the raw materials were not only cheaper but also subsidized. Sanctions were the only thing that stopped it, and in some ways, they saved the industry,” said Szymon Firląg, President of the Employers’ Union of Construction Materials Manufacturers.
In a statement released after the “EU Economic Security” conference, construction industry leaders emphasized that many imported products from Eastern countries are not only subsidized but also come from companies owned by sanctioned states. The European Union, including during the current Polish presidency, has introduced a package of sanctions against Russia and Belarus in response to their aggression against Ukraine.
“The EU has consistently introduced sanctions against Russia and Belarus in response to Russia’s brutal war against Ukraine. During the Polish presidency, the 16th sanctions package was adopted, and we are now working on the 17th, hoping it will be approved by the end of June,” explained Katarzyna Smyk, Director of the European Commission Representation in Poland.
She also pointed out that sanctions alone are not enough — enforcement is key. The responsibility lies with member states, which is why she encourages dialogue with national governments. She noted that the Commission regularly meets with national representatives to exchange best practices and improve compliance.
“We regularly host meetings with national sanctions coordinators to share experiences and strengthen the enforcement of EU sanctions,” Smyk said.
Smyk emphasized that the sanctions are having a measurable impact:
“The EU’s sanctions — together with our G7 partners — have cost Russia around €400 billion that could have been used to fund its war machine. The sanctions are painful and effective, but we must remain vigilant to ensure they work.”
The “EU Economic Security” conference, held at Warsaw’s PGE Narodowy stadium, brought together representatives from the business community, trade associations, public administration, and EU institutions. Discussions focused on the EU’s strategic economic objectives, trade policy, public procurement, the Clean Industrial Deal, and the economic priorities of Poland’s presidency of the EU Council. Participants voiced serious concerns about the current state of the European construction materials market and the broader risks to the EU’s economic security.
Attendees issued a joint set of recommendations aimed at balancing openness to international trade with the protection of the EU’s strategic economic interests. These included:
- Reinstating customs balance by introducing tariffs on imports from outside the EU that match those imposed on EU exports to third countries.
- Implementing protective tariffs on key construction materials imported from outside the bloc.
- Accelerating the full implementation of the Carbon Border Adjustment Mechanism (CBAM) to factor in CO₂ emissions — and expanding it to cover all high-emission construction materials.
These changes, they argue, are essential not only for market stability, but also for maintaining strategic autonomy and supporting European manufacturers in the face of mounting global competition.
