EU unveils new steel import quota volumes and implementation rules

The European Union has released detailed provisions of its new steel import regulation, including quota volumes and several implementation adjustments. The measure aims to address the negative impact of global overcapacity on the EU steel market, replacing the existing safeguard regime set to expire in June 2026. The new regulation will take effect on July 1, 2026.

Under the regulation, the total annual tariff-rate quota is set at 18,345,922 metric tons. Imports within the quota will remain duty-free, while volumes exceeding the quota will incur a 50% tariff-a significant increase from the previous 25% safeguard duty.

The measure applies broadly to all third countries, including those with free trade agreements or preferential access, reinforcing the EU's efforts to prevent trade diversion and protect domestic producers. However, imports originating from Norway, Iceland, and Liechtenstein are excluded.

The European Commission retains the authority to expand the scope of the regulation to include downstream steel products in future reviews.

Tariff-rate quotas will be administered on a quarterly basis to prevent short-term import surges. During the first year of implementation, unused quotas may be carried over to subsequent quarters. However, the Commission may later adjust this rule depending on market conditions, including import pressure and supply shortages.

In a joint statement, the European Parliament, the Council of the EU, and the European Commission emphasized that the EU has taken unprecedented steps since the onset of the war in Ukraine to reduce its economic dependence on Russia and prevent its economic activity from supporting Russia's war efforts.

Nonetheless, the institutions acknowledged that certain dependencies remain, particularly for specific steel products not yet fully restricted. As a result, limited volumes of Russian steel imports are still permitted under transitional arrangements until September 30, 2028, with quotas declining annually. The EU confirmed that these measures are designed to ensure the complete phase-out of remaining Russian steel imports-especially steel slabs-by the 2028 deadline.