The European Union has finalized new measures to address the negative trade-related effects of global overcapacity in its steel market, particularly stemming from cheap imports, largely from China. The new regulation, effective July 1, 2026, will cut the annual tariff-free import volume of steel by 47% to 18.3 million tonnes. This volume is based on the EU's total steel imports in 2013, a year chosen as a reference before the market became significantly imbalanced due to excess global production.
Under the new framework, any steel imports exceeding these reduced quotas will be subject to a 50% ad valorem duty, a substantial increase from the previous 25%. This move aligns the EU with tariff levels seen in the United States and Canada. The measures are designed to provide a comprehensive response to the deteriorating situation of the Union steel industry, which has seen an unprecedented loss of over 30 million tonnes in production capacity and approximately 30,000 job losses since 2018.
Additionally, the regulation introduces a "melt and pour" rule, requiring importers to provide verifiable evidence of where the raw steel or iron was initially produced in liquid form. This aims to enhance transparency and prevent circumvention of the new rules. Exemptions from these tariffs and quotas will apply to imports from Iceland, Liechtenstein, and Norway due to their unique integration under the European Economic Area agreement. The European steel industry group Eurofer has welcomed the accord, suggesting it could help preserve around 230,000 jobs within Europe.
