The EU has reached a preliminary deal to significantly tighten steel import measures, aiming to curb the impact of global overcapacity by sharply reducing quotas and increasing tariffs on excess shipments.
Under the agreement between the Council and the European Parliament, the revised tariff-rate quota (TRQ) system will reduce import volumes by around 47pct compared with 2024 safeguard levels, equivalent to roughly 18.3 mln tons per year. Imports exceeding these quotas will face higher duties of 50pct, aimed at discouraging excess inflows while maintaining controlled access for traditional suppliers.
The new framework will replace existing EU steel safeguard measures set to expire on 30 June 2026, ensuring continuity of protection for the bloc’s steel sector.
The agreement also introduces more flexible quota management. In the first year, unused quotas can be carried over between quarters across all product categories to support supply chain stability. From the second year, the European Commission will assess whether such carry-over should continue, based on import pressure, quota utilization and supply availability.
To prevent circumvention, the regulation includes a “melt and pour” provision, identifying the origin of steel based on where it was first produced in liquid form. This will be used as a factor in allocating quotas among exporting countries, with a review planned within two years to assess broader implementation.
The product scope remains broadly aligned with current safeguards, but the Commission will conduct a review within six months to assess potential inclusion of additional products such as tubes, pipes and certain wire products. A further review will follow within 12 months, with ongoing assessments every two years.
The regulation also includes monitoring and reporting mechanisms to allow adjustments in response to market developments and evolving overcapacity conditions.
The new measures are expected to take effect from 1 July 2026, subject to formal approval by EU member states and the European Parliament.
