EU announces new steel import quotas and changes in their application
The European Union provided detailed information on the new steel import rules, including quota amounts, and made some changes regarding the implementation of the measures.
The new regulation aims to address the negative trade-related effects of global overcapacity on the steel market and replaces the existing protective measures, which expire in June 2026 and will enter into force on July 1, 2026.
The total quota is set at 18.35 million tons and a 50% tariff has been introduced.
The regulations set a total annual tariff quota of 18,345,922 tons, while imports within the quota will remain duty-free, while volumes exceeding the quota will be subject to a 50 percent tariff, which is a sharp increase from the previous 25 percent protective duty.
This measure is widely applied to all third countries, including those with free trade agreements or preferential access, strengthening EU efforts to prevent information leakage from trade and protect domestic producers. However, imports from Norway, Iceland and Liechtenstein are excluded from the scope of this measure.
The European Commission also reserves the right to expand the scope of application to include steel products intended for recycling in future reviews.
Quarterly quota management and flexibility mechanisms
Tariff quotas will be introduced quarterly in order to prevent a sharp increase in imports in a short period of time. During the first year of application, unused quotas will be carried over to subsequent quarters. However, the commission may later adjust this rule depending on market conditions, including import pressures and supply shortages.
Future reviews
The European Commission will:
- review the product range regularly,
- evaluate the effectiveness of the measures every three years,
- potential adjustment of quota volumes in the range of 14.4-22.2 million tons, depending on market development.
The annual volumes of tariff quotas for some types of steel products are shown below.
The EU will completely abandon the import of Russian steel by 2028
In a joint statement, the European Parliament, the Council and the European Commission stressed that since the beginning of the war, the EU has taken unprecedented steps to reduce its economic dependence on Russia and prevent its economic activities from supporting Russia's war efforts.
However, the organizations recognized that some dependencies still remain, especially for certain types of steel products that have not yet been fully regulated.