The Council of the European Union has formally adopted a new regulation establishing a revised framework to protect the EU steel market from the effects of global steel overcapacity, ensuring continued trade protection after the current steel safeguard measure expires on June 30, 2026.
The new regulation forms part of the European Commission’s Steel and Metals Action Plan and will enter into force on July 1, 2026.
New tariff-rate quota system introduced
The regulation establishes a revised tariff-rate quota (TRQ) system aimed at addressing the impact of structural global overcapacity on the European steel market.
Under the new framework:
- steel import quotas will be reduced,
- higher duties will apply to imports exceeding quota volumes,
- monitoring of import flows will be strengthened.
The measure is designed to safeguard the competitiveness of the EU steel sector while maintaining compliance with the bloc's international trade obligations.
Greater flexibility for steel users
The new rules also introduce additional flexibility for economic operators by allowing unused quotas to be carried over from one quarter to another within the same quota year. According to the Council, the mechanism is intended to help ensure adequate steel supply for downstream industries while maintaining the effectiveness of the trade measure.
To improve transparency and limit circumvention, the regulation introduces a “melt and pour” requirement, under which the origin of steel is determined by the country where the steel was first melted and poured into its initial solid form. The provision is expected to strengthen traceability and reduce the risk of steel products being rerouted through third countries to avoid trade restrictions.
Stronger review mechanism established
The regulation also creates an enhanced review mechanism that will allow the European Commission to regularly assess the scope and effectiveness of the measure.
The Commission will be able to propose adjustments where necessary in response to changing market conditions, import trends and developments related to global steel overcapacity.
EU reiterates commitment to reducing Russian steel dependence
In a joint declaration accompanying the regulation, the Council, the European Parliament and the European Commission reaffirmed their commitment to reducing the EU's economic dependence on Russia.
The institutions highlighted ongoing efforts to diversify steel import sources and continue the gradual phase-out of Russian steel products from the European market.
The adoption marks the final legislative step in establishing the EU's new steel trade protection framework, which policymakers view as a key component of efforts to strengthen industrial competitiveness, support decarbonization and preserve strategic steelmaking capacity within Europe.
