The regulation introduces lower import quotas by limiting tariff-free import volumes to 18.3 million tonnes annually, a 47% reduction compared with 2024 steel quotas. It would also apply a 50% customs duty (instead of the current 25%) to imports above the quota and to steel goods not covered by it. Ukraine’s situation as a candidate country with special security concerns shall be considered when allocating country quotas.
The aim is to help the EU steel industry counter the negative trade-related effects on the steel market of global overproduction once the current safeguards, in place since 2018, expire on 30 June 2026.
Improved traceability
The regulation introduces a “melt and pour” rule, under which the origin of steel is determined by where it is first melted and cast, strengthening traceability and limiting circumvention through minimal processing in third countries. The Commission will have to take into account the origin of steel when assigning annual quotas.
The new regulation, which was already agreed between Parliament and Council negotiators, was approved by 606 votes in favour and 16 against, with 39 abstentions.
Quote
Karin Karlsbro (Renew, SE), lead negotiator of the file, said: “Europe needs a strong and competitive steel industry built on trade, innovation and fair competition. Combatting the negative trade effects of global overcapacity is essential, and I welcome the exemption for Russian steel slabs not being extended. At the same time, Ukraine must not be punished by EU measures while its steel industry is under direct Russian attack. Ukraine is not the source of global overcapacity. We must treat them as a future EU member and strategic partner, and the EU must now live up to our promise that Ukraine will receive special status under the new regulation.”
Next steps
The new regulation now has to be formally approved by the Council. It will enter into force on 1 July 2026.
Background
The global steel safeguards, in place since 2018 under the under the World Trade Organisation (WTO) Agreement on Safeguards, will expire on 30 June 2026.
The EU steel industry is vital for the EU’s economy and of strategic importance for the EU’s defence capability, as set out in the Commission’s steel and metals action plan (SMAP). The sector has faced trade-related challenges, including significant and sustained import pressure in terms of volume and prices, as result of global overcapacity. It has also seen about 100,000 job losses since 2008.
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